*Need a 160- 230 discussion while answering the question below*
It is well known that the Federal Government in general, and DoD in particular, discourages agencies from using the Time & Materials (T&M) contract type.
- Why is that?
- Describe a scenario where the T&M contract type is likely to be the best contract type despite the “discouragement”.
- You’re a Federal Contracting Specialist and your Division Head refuses to let you use a T&M contract type despite your sound rationale. So, is it ethical for to structure the solicitation for a Firm Fixed Price (FFP) or Cost Plus Fixed Fee (CPFF) contract type so that the contract will act like a T&M contract even though it technically isn’t? For example, would it be ethical to add “Fee Reduction Clause” if the contractor doesn’t meet a certain number of labor hours?
Week 1 Learning Activity #2
Go to the Cost Principles in FAR 31.205 and find an example of a cost that would be unallowable. Give a short description of the cost and explain the policy behind why that cost is unallowable.
Notes:
http://farsite.hill.af.mil/vffara.htm
Part 16 Types of Contracts, Volume 1, page 16.1
Part 31 Cost Principles and Procedures, Volume 1, page 31.1
