Attachment_(O)_-_Example_for_Actual_Utilization_(2-14-18).pdf
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- AGENCY ACQUISITION SUPPORT SERVICES
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- 80NSSC18R0025
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ATTACHMENT O - EXAMPLE OF UTILIZATION
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ATTACHMENT (O): EXAMPLE OF END OF CONTRACT YEAR MODIFICATION TO
REFLECT ACTUAL UTILIZATION
Approximately 30 days after the completion of each contract year (October 30 th
), the
Government will execute a unilateral modification to the contract revising the quantity of transactions to reflect actual utilization by the Government for that contract year. The firm fixed price rate and total value for contract closeout services will also be revised to reflect the actual utilization figures, applicable Service Rate Band from Attachment (B) – Price Detail, and the associated recalculation of a total value amount.
Table One: Hypothetical CAT 1 (PO, TO, DO) Bands / Prices
CAT 1 PO, TO, DO
Band One 0-5499
Band Two 5500-6000
Band Three 6001-7000
Band Three
>7000
Cost Per Transaction $24.00 $23.00 $22.00 $21.00
The end of year contract value for each transactional service will be determined by which band the final utilization figure falls under for that service. For example, end of contract year utilization of 6100 CAT 1 Closeout transactions using the hypothetical bands and prices found in table one above would result in a final value of $134,200.
CORRECT INCORRECT
6100 X $22.00= $134,200 6000 X $23.00= $138,000
100 X $22.00 = $2200
Total Value for CAT 1 = $134,200 Total Value for CAT 1 = $140,200
Scenario One: No Adjustment
The Government orders 6000 and the contractor executes 5600 CAT 1 closeout transactions for
Contract Year One (CY1.) at $23.00 per transaction.
Description Quantity Unit
FFP
Rate Total Value
CAT 1 PO, TO, DO 5600 Ea. $23.00 $128,800
TOTAL $128,800
The Contractor has invoiced as transactions were completed. The Contract would be modified to decrease the value of the CLIN to represent a quantity of 5600, but there would be no credit due to the Government or additional invoice from the Contractor because the utilization for the year ended in the range of Band 2 and all transactions have already been invoiced at the appropriate
FFP Rate.
Scenario Two: Adjustment Favoring Government
The Government orders 6000 CAT 1 closeout transactions for CY1 at $23.00 per transaction.
The Contractor invoices as the transactions are completed.
Rate Total Value
CAT 1 PO, TO, DO 6000 Ea. $23.00 $138,000
TOTAL $138,000
After twelve months, final utilization for CAT 1 was 5300, placing it in Band 1. The Contractor has already invoiced for $138,000 (6000 X $23). The value for CAT 1 would be adjusted as follows:
Rate Total Value
CAT 1 PO, TO, DO 5300 Ea. $24.00 $127,200
TOTAL $127,200
The Contractor would owe the Government a credit of $10,800 ($138,000 – $127,200).
Scenario Three: Adjustment Favoring Contractor
The Government orders 6000 CAT 1 closeout transactions for CY1. The Contractor bills as the transactions are completed.
Rate Total Value
CAT 1 PO, TO, DO 6000 Ea. $23.00 $138,000
TOTAL $138,000
Final utilization was 6500, placing it in Band 3. Therefore the value would be adjusted as follows:
Rate Total Value
CAT 1 PO, TO, DO 6500 Ea. $22.00 $143,000
TOTAL $143,000
The Contractor has only invoiced $138,000 (6000 X $23.00). Therefore, the Contractor would invoice the
Government for an additional $5,000 ($143,000 - $138,000).
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