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Recently received a new/revised WD for a CPIF subcontract that increased salary for a labor category. Pricing did not include overhead, G&A in the price adjustment proposal to the prime contractor.
What elements of cost are applied to SCA pricing adjustments for cost reimbursable contracts and subcontracts?? Can overhead and G&A be applied to the new WD rate??
We highly encourage comments, examples, feedback and continued discussion.
Unlike contract prices in fixed-price contracts, and contract unit price labor rates in time-and-materials and labor hour contracts, SCA adjustments to estimated costs in cost-reimbursement contracts may include indirect costs (i.e., overhead & G&A). The FAR clauses that limit SCA price adjustments to wages and fringe benefits (52.222-43 and -44) don't apply to cost reimbursement contracts (see prescription at FAR 22.1006(c).
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