Hi: 1st time poster, long time lurker. Very useful site -- especially for regulatory changes!

FYI -- I'm employed by a "Beltway Bandit" as a consultant in the Federal contract arena (primarily CAS & cost accounting, but also some "generic" contract administration).

Enough of the intro; here's my question.

In my copy of the Government Contract Guidebook, it says "Redeterminable contracts are virtually never used by the Government." Cibinic & Nash don't have much to say on this topic either.

Well, I've actually come across one of these elusive & rare creatures. My client has a FP-redeterminable contract with DOE. We're trying to evaluate the probability of recovering cost growth in future periods through the redetermination provisions.

My question(s) are, has anybody ever worked with one of these rarities before? Do they work well, or have there been problems negotiating the periodic price redetermination? What elements of cost growth is the Government likely to be unwilling to negotiate into the new price? Can a contractor expect to receive the originally negotiated profit rate within the redetermined price, or will any expected profit be absorbed by the cost growth?

Does DCAA treat the request for price redetermination similarly to any other contractor proposal/REA -- or is there some special aspect that KOs look for?

Also, if anybody knows about any BCA or other cases dealing with this contract type, I'd be much obliged for a pointer in the right direction.

Many thanks for the assist. In repayment, if I can answer any questions regarding CAS or cost accounting from a contractor's perspective, I will be glad to do so.

By bob antonio on Saturday, December 09, 2000 - 07:08 am:

Nick:

Thanks for using the site. We always look forward to new posters. Some time ago, a user mentioned how she searched for items on past procurements. She used the CBD search--which can be found on the "Quic-Kit" page of the main site here. I ran a search for redetermination and came up with less than 10 over the past several years. Here they are with the date they appeared in the CBD. There are a few that are more recent but will less experience on the individual contract. Contacts for the procurement are identified. Perhaps one of them can help.

1. 8/12/98

CLASSCOD: 26--Tires and Tubes
OFFADD: RED RIVER ARMY DEPOT, CONTRACTING DIRECTORATE, 100 MAIN
DRIVE, TEXARKANA TX 75507-5000
SUBJECT: 26--STRIP STOCK RUBBER
SOL DAAC79-98-R-0006
DUE 092898
POC Contract Specialist WILLIAM STONE (903) 334-4384 (Site Code DAAC79)
DESC: Military Specification MIL-PRF-11891F(AT) Strip Stock Rubber. This will be Fixed Price-Prospective Price Redetermination Contract. (FAX 903-334-4141). CITE: (I-224 SN236095)

2. 8/13/97

CLASSCOD: 26--Tires and Tubes
OFFADD: RED RIVER ARMY DEPOT, CONTRACTING DIRECTORATE, 100 MAIN
DRIVE, TEXARKANA TX 75507-5000
SUBJECT: 26--STRIP STOCK RUBBER
SOL DAAC79-97-R-0009
DUE 100897
POC Contract Specialist WILLIAM STONE (903) 334-4384 Contracting Officer CHARLIE D. HARRIS, JR. (903) 334-4384 (Site Code DAAC79)
DESC: Military Specification MIL-PRF-11891 F (AT) Strip Stock Rubber, Requirements Type Contract This will be Fixed Price-Prospective Price Redetermination. FAX 903-334-4141). All responsible sources may submit an offer which will be considered. CITE: (I-225 SN109831)

3. 12/28/99

CLASSCOD: S--Utilities and Housekeeping Services
OFFADD: Department of the Air Force, Air Education and Training Command, Tyndall AFB Contracting Squadron, 501 Illinois Ave, Ste 5, Tyndall AFB, FL, 32403-5526
SUBJECT: S--PRIVATIZATION OF UTILITY SYSTEMS AT MAXWELL AFB/GUNTER ANNEX, VIGILANT WARRIOR TRAINING SITE (VWTS), AL
SOL F08637-99-R-6006
DUE 051900
POC Dale Peaden, Contract Specialist, Phone 850 283-8636, Fax 850 283-8491, Email dale.peaden@tyndall.af.mil The Government anticipates awarding a Fixed Price-Prospective Redetermination Utility Service 50-year contract s). . Questions on the RFP shall be submitted electronically to Ms. Dale Peaden at e-mail address dale.peaden@tyndall.af.mil.
LINKURL: http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=P&ProjID=F08637-99-R-6006&LocID=511
EMAILADD: dale.peaden@tyndall.af.mil
EMAILDESC: Dale Peaden
CITE: (D-362 SN411742)

4. July 18, 1997

CLASSCOD: 16--Aircraft Components and Accessories
OFFADD: Commander, Naval Air Warfare Center Weapons Division, Code 210000D, 1 Administration Circle, China Lake, CA 93555-6100 SUBJECT: 16--LIGHTWEIGHT ENVIRONMENTALLY SEALED PARACHUTE ASSEMBLIES AND IN-SERVICE SUPPORT
SOL N68936-97-R-0247 POC William T. Monckton, Contract Specialist, (760) 939-8234 or L. Dell Hledik, Contracting Officer, (760) 939-3772
DESC: 1670 - LIGHTWEIGHT ENVIRONMENTALLY SEALED PARACHUTE ASSEMBLIES AND IN-SERVICE SUPPORT Naval Air Warfare Center Weapons Division (NAWCWPNS), China Lake. Proposed contract type is a commbination of fixed-price with redetermination and cost plus fixed fee Indefinite Delivery Indefinite Quantity contract. CITE: (I-199 SN098706)

5. 11/24/99

CLASSCOD: 28--Engines, Turbines and Components
OFFADD: Defense Supply Center Richmond, 8000 Jefferson Davis Highway, Richmond, VA 23297-5000
SUBJECT: 28--AND 29, VARIOUS NSN'S, RTC SOL SP40000R0626 DUE 121399
POC Cynthia Short, 804-279-5789, fax 804-279-5201, DSN 695 DESC: DSCR CORPORATE CONTRACT INTITIATIVE This is a sole source (Note 22), unrestricted solicitation for SIC 3724, size 1000 employees, FOB origin to establish a fixed price redetermination, Requirements Type Contract for a 2-year base and includes three 1 year options as described at clause 52.217-9G07 ALTI (I90A). LINKURL: http://www.dscr.dla.mil
LINKDESC: dscr homepage
EMAILADD: cshort@dscr.dla.mil
EMAILDESC: dscr.dla.mil
CITE: (W-328 SN403453)

By Nick Sanders on Monday, December 11, 2000 - 12:55 pm:

Bob --

Many thanks for the quick response. I'll look at these solicitations to see what they can tell me.