Sign In
  • Question

    Is there a precedence for using pricing from a proposal for use in the contract? Specifically, labor categories are broken down by direct and indirect rates in the contractor's proposal. The contract gives no reference to pricing of any kind, except for CLIN ceilings, including in the attachments. Is this an acceptable practice? If I include anything from a proposal, I pull that specific section and place into contract. I don't rely on unstated references to a proposal. In theory, or maybe in practice, if no pricing is included in the contract then the awardee's proposal pricing would be the 'default' pricing?


    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. 

     

    The government uses pricing in a proposal to evaluate perceived value.  The CLIN pricing is what is binding once performance begins.  The key in your situation is that you have a CPAF contract arrangement.  That is why your CLINs ae set up with ceilings rather than specific dollars.  The government will pay all reasonable, allowable costs incurred by the contractor.  Its composite rate for a senior engineer from the proposal or even from Attachment 1 of the contract is not what we pay; we pay what the senior engineer that performed the task is being paid, whether it is more or less than a rate from a table(proposal or contract).  The pricing in the proposal gives us an estimate of what costs we can expect based on the forecasted rates and factors provided.

    Open full Question Details
Chat with DAU Assistant
Bot Image