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Contractor Per Diem
By Anonymous on Wednesday, April 25, 2001 - 09:47 am:

I'm administering an indefinite A&E contract. The contractor has submitted an invoice which includes a charge for per diem of $750.00, ten days at $75.00/day. The charges are considered reasonable and allowable. I've read FAR 31.205-46 and feel that these charges can be paid as long as they do not exceed the maximum per diem rates established in the FTR. Are my feelings correct?


By Kennedy How on Wednesday, April 25, 2001 - 12:11 pm:

I believe so. I remember (a long time ago), I negotiated a change order in which the Government objected to the contractor's travel expenses because they exceeded the FTR rates for that locality.

In other words, the most you can pay a contractor is the same rates as if the contractor was a Government employee.

Kennedy


By Loki on Thursday, April 26, 2001 - 09:52 am:

In either the FTR or the JTR there are exceptions to the per diem rate at which G. will pay actual subsist. costs, but that is rare.

What travel expense rate structure was agreed to in the contract? If the contract is silent, you're basically left negotiating a change to it to incorporate a rate structure for travel.

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