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  • Question

    When a vendor adds a fee as a percentage of costs on a FFP service contract, can that fee be assessed against the G & A and overhead costs or should it only reflect the fee as a percentage of the basic unit cost X quantity?


    It doesn't matter how the vendor calculated its price per class. Whether any fee, at any percentage, is added to the school's total price per class is not typically relevant for a FFP commercial contract. It's not clear why the college broke out (or why the contracting officer solicited) both the price per class and a separate wrap rate. What matters is whether the quoted, single line, firm fixed-price (the "price per class" plus the 8%) can be determined as fair and reasonable compared to either competitive quotes or prices for similar training.

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