Sign In
  • Question

    The question is the contractor is invoicing at the 2021 rates for tipping fees which is on the contract but are actually being charged by the landfill 2020 rates. This is a difference of $1.23 per ton and in this instance it comes to a total of $206.85 for the month. Which amount should they be paid at? I was told because it is a firm fixed contract that they are paid what is on the contract and it could also be the reverse if the landfill is charging them more we would still pay what is on the contract. Can you please verify if this is correct or not.


    Answer

    This response is based on the information provided.  We suggest you discuss with your contracting team, program manager and/or legal department as appropriate. 

     

    There is too little information provided to give a definitive response. 

    As always, "The answer is in the contract."  The language of the schedule (Section B, CLIN structure) supersedes the language of the PWS.  You have an inconsistency in the language as presented to us. 

    If you believe the benefit over the life of this contract is significant enough to make this change, then you need to identify this discrepancy and negotiate the change concluding with a supplemental agreement.  Before you do, check to see if that there no other discrepancies written to our advantage which the contractor would want to negotiate.  The contractor has a right to assert this modification will cost it money and that it deserves some consideration.  But they also have to prove they are going to incur additional costs, i.e., the fact that we are paying higher then we ought and no longer choose to do so is not satisfactory justification for some price increase.

     

    Open full Question Details
Chat with DAU Assistant
Bot Image