*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.
Part 16 Types of Contracts, Volume 1, page 16.1
Part 31 Cost Principles and Procedures, Volume 1, page 31.1