The contract has both fixed price and cost reimbursement line items. What is the profit the contractor can earn for this work?
For fixed price line items, the Government accepts the contractors price, which includes profit, for each service at the time of award. The Government can then issue task orders for these services, and the contractor is required to perform the service at the price it proposed. The profit for cost reimbursement line items is based on a fee structure. For the USAREUR Support Contract, the base fee (which the contractor is automatically entitled to) is one percent of the negotiated estimated costs. The award fee is up to 6 percent of the negotiated estimated costs, and the amount of the award fee is contingent upon the Governments evaluation of the contractors performance. However, no profit or fee is allowed for equipment that is procured on a cost reimbursement basis for the USAREUR Support Contract.
Related Questions
- Were the offerors required to submit their proposals on the basis of both fixed price and cost reimbursement line items?
- Can AHRQ indicate what percentage of task orders will be cost reimbursement, firm fixed price, and performance-based?
- Was the contractors price evaluated on the basis of both cost reimbursement and fixed price line items?
