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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?


    Answer

    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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