SP451023Q1045 Question and Answer.docx

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DLA DS MHE Preventative and Corrective Maintenance - Norfolk
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SP451023Q1045
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Q1) Paragraph 3.e. (page 5) of the PWS states “Contractors shall not mark prices up on parts or materials Contractors receive from their suppliers.”

Question: Please confirm that under the Corrective Maintenance (T&M) CLINs overhead costs are allowed. If so, what is a reasonable % the USG will accept under the T&M CLIN to cover research or parts, ordering parts, management of the effort and the cost of credit. An few example of why we ask this question – the cost of credit has gone up over the last year. If the contractor is extending credit to the USG for long lead time or OEM specific parts that cost is rolled into G&A or O/H. On support contracts, Contractors are generally allowed to be compensated for overhead costs, handling fee(s), and profit (or fee).

A1) Please review FAR Provision 52.212-4 Alternate I

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