UAS_IMS_Draft_CPFF_language_10_APR_17.docx

LEVEL OF EFFORT (LOE) FOR COST PLUS FIXED FEE (CPFF) LINE ITEMS

The LOE to be provided by the contractor will be estimated for each individual task order. Each task order with CPFF line items will include the language below. All CPFF line items under this contract are term form in accordance with (IAW) FAR 16.306(d)(2).

(a) The contractor is obligated to provide the below, specified LOE within the time period defined (IAW FAR 16.306(d)(4)) for each Contract Line Item Number (CLIN). If the specified LOE changes this paragraph will be revised (via modification to the task order) to reflect the change.

CLIN Military Occupational Specialty (MOS) Hours

(b) IAW FAR 16.306(a), the fixed fee associated with each CLIN will not vary with actual cost, but may be adjusted as a result of changes in the work to be performed (LOE) under this task order. The fixed fee of _____% is associated with each CLIN. The fixed fee associated with each CLIN in the task order will be paid for hours performed from 90%-100% of the specified LOE described in paragraph (a). In the event less than 90% of the LOE described in paragraph (a) is actually required (as a result of changes in the work to be performed), the fixed fee will be reduced (via modification to the task order) for the LOE not performed on a prorated basis using an “average fee dollar per hour” method calculated IAW the following formulas:

(Average Fee $ per Hour) x ([Specified LOE hours IAW paragraph (a)] – [Actual LOE hours]) = Fixed Fee Reduction $

(c) NLT one day after the period of performance end date, if the actual hours performed per CLIN are less than 90% of the LOE described in paragraph (a), the contractor shall submit in writing, the actual LOE performed, the amount by which the estimated cost of the CLIN(s) may be reduced, and a calculation of the appropriate fee reduction in accordance with (b).