Attachment_06-TO_0001_CPFF_LOE_language.docx

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

The fee percentage proposed will be binding for the life of the contract.

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.

(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 (TO). The fixed fee of __[CONTRACTOR TO PROPOSE]__% is associated with each CLIN. The fixed fee associated with each CLIN in the task order will be paid for hours performed from X%-100% (percentage to be determined by the Government for each TO; no less than 90% for any TO) of the specified LOE described in paragraph (a). In the event less than X% (percentage to be determined by the Government for each TO; no less than 90% for any TO) 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) No later than one day after the CLIN period of performance end date, if the actual hours performed per CLIN are less than X% (percentage to be determined for each TO; no less than 90% for any TO) of the LOE described in paragraph (a), the contractor shall submit in writing to the Procuring Contracting Officer, 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).

(d) These terms and conditions do not supersede the requirements of either FAR clause 52.232-20 “Limitation of Cost” or FAR clause 52.232-22 “Limitation of Funds”.