Sign In
  • Question

    When is it best to work with Fully Burdened Labor Rates (FBLR)? I know that we have Labor Hour and T&M contracts where the FBLRs are listed in B-Tables to allow for ease and flexibility during execution. These rates will satisfy the "Time" component in T&M. They also appear in other contract types like CPFF LOE. Can you provide me with input as to when it is best to use FBLRs and why they are used?


    Answer

    There is no best way to work with fully burdened labor rates as that is dependent on the nuances of the contract type, the terms and conditions of the contract, and therefore when it is acceptable for a contractor to be able to bill by the FBLR. Agreements such as BPAs or BOAs can establish price lists for FBLRs when warranted. Since it is up to the contracting officer to negotiate such payment arrangements with contractors, an ideal solution for your training would be to reach out to the current contracting officers in your organization to see if they have examples of real-world application of when they negotiated FBLRs and the associated contract type. Real-world examples help provide clarity and can make the training much more relevant. 

    Open full Question Details
Chat with DAU Assistant
Bot Image