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  • Question

    The contractor has reached to me for a definitive answer due to conflicting answers from various sources. If a CPFF contract is not fully funded by the USG (the contract amount is $12,060,506.91 and the obligated amount is $11,197,657), is the KTR entitled to the full amount of the agreed Fee. If not, how is the fee determined?


    Answer

    Look at the clauses that are in the contract and ensure FAR 52.232-22 for incrementally funded contracts is included, since it is required for any cost-reimbursement contract that is incrementally funded. FAR 52.232-22(l) states: If the Government does not allot sufficient funds to allow completion of the work, the Contractor is entitled to a percentage of the fee specified in the Schedule equaling the percentage of completion of the work contemplated by this contract. 

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