2. Do not define how the Fee is paid in CPFF Completion contracts
3. Do not accrue your costs in real time accounting system with ability to produce accurate estimates to complete
This can vary dramatically since without the Government controlling what type of Labor they get in exchange for fixed fee, the contractors often propose All Labor’s Effort as Fee bearing LOE. This is, of course, silly. Given that you have no way of knowing, most of the time, how many locals you end up hiring, the contractors estimate way too many days of LOE and collect fee for every driver and secretary that they bill against the LOE in the contract. The remedy for the Government, which we now see in some of the better equipped Missions, like South Africa and Latin America is to fix the fee against delivery of LOE ONLY by Professional Categories of Labor.
There should be a procedure for exceptional work over the 40 hour work week (for example work on week end or after hours to meet a client deadline) and those hours should also be recorded towards the LOE – regardless of whether they are paid or unpaid. Yes, if they are unpaid, the Government is getting labor at cheaper cost that week, but the Government is still paying the fee for those extra labor hours above the 40-hour work week (or 8 hours per calendar day) defined as LOE.
These are DCAA rules, which are currently subject to much audit. This means that if you do not get paid extra for “overtime” or weekend travel days, your time for that month becomes cheaper to the contract/Government:
3. Projected Final Indirect Costs at current rates
4. Anticipated Fee Earned To Date
5. Anticipated Fee to Complete