Labor Rate | The Contracting Education Academy

February 18, 2016 By AMK

Robins Air Logistics Base has not effectively negotiated depot contractor profit, says IG

The Air Force has not effectively negotiated depot labor profit at its logistics complex at Robins Air Base in Warner Robins, Georgia, the Defense Department watchdog concluded, missing an opportunity to cut contractor profit and fees by $9.6 million to $24.9 million.

“Contracting officials did not adequately reduce or eliminate profit and fees paid for work performed” through a public-private partnership, said an inspector general’s report dated Feb. 8. “This occurred because program officials either did not prepare or update the business case analysis supporting the partnership type selected.”

The labor charges based on repair and maintenance affect such weapons programs as the Boeing C-17 Globemaster III heavy-lift aircraft and the AN/APN-241 high resolution radar system developed by Northrop Grumman.

Keep reading this article at: http://www.govexec.com/contracting/2016/02/air-force-told-save-millions-contractors-depot-labor/125912

November 8, 2013 By AMK

Payments to HealthCare.gov contractor questioned during Medicare.gov overhaul

Government contracts with a major vendor building HealthCare.gov drew scrutiny in the past, a 2007 audit shows.

In 2011, the Centers for Medicare and Medicaid Services awarded Canada-based CGI a $94 million contract to construct the public face of the Obamacare insurance marketplace. According to BusinessWeek, that contract has reached a value of roughly $277 million. The website hosting the marketplace, HealthCare.gov, has been barely functional at best since it launched on Oct. 1.

Six years ago, CGI’s compensation for work on another CMS website raised eyebrows. The company received $2.6 million in “questionable payments” for a revamp of Medicare.gov and an existing claims appeals system to handle prescription drug benefits. CMS may have violated its own rules in some payments to CGI, and at least four of the company’s invoices contained suspicious charges, according to a government audit.

The fees, found among a $25.7 million sampling of bills, were questionable because they were potentially improper, unsubstantiated or wasteful, the audit said. Examiners identified questionable payments to CGI and about 15 other contractors implementing the 2003 Medicare Prescription Drug, Improvement, and Modernization Act.

Keep reading this article at: http://www.nextgov.com/health/2013/10/payments-healthcaregov-contractor-questioned-during-medicaregov-overhaul/72704

May 21, 2013 By AMK

MAS vendors don’t always provide accurate information or qualified labor, says GSA OIG

The General Services Administration still permits vendors that provide inaccurate commercial sales data and supply unqualified labor to remain on schedules contract vehicles, says the agency’s inspector general.

In the report, auditors say problems related to vendors providing accurate commercial sales practices and providing price justifications improved somewhat from fiscal 2010 to fiscal 2011, but still remain a concern. The prevalence of unqualified labor rose in fiscal 2011.

While the prevalence of CSP issues dropped 14 percent from fiscal 2010, auditors still found that more than two-thirds of vendors in preaward audits during fiscal 2011 provided contracting officers with flawed CSP information that “adversely affected the contracting officers’ determination of fair and reasonable pricing for those contracts,” says the report.

Problems include instances when schedule contractors offered discounts at a level greater than they disclosed to GSA, auditors say.

Keep reading this article at: http://www.fiercegovernment.com/story/mas-vendors-dont-always-provide-accurate-information-or-qualified-labor-say/2013-03-11

April 4, 2013 By AMK

Energy Dept. overpays contractor executives

An Energy Department official signed off on cushy contractor salaries well above levels specified in department guidance, according to an inspector general report released Wednesday.

The Energy official in Oak Ridge, Tenn., approved higher than market rate salaries for 10 contractor executives at URS|CH2M Oak Ridge LLC, the report found. The company has a $2.2 billion contract to manage environmental cleanup efforts at the East Tennessee Technology Park in Oak Ridge.

Two of the more extreme cases had executives netting $299,800 and $337,581, or 82 percent and 74 percent above the corresponding market rates for each position, respectively.

Keep redaing this article at: http://www.govexec.com/technology/2013/03/energy-dept-overpays-contractor-executives/62122/?oref=nextgov_today_nl

September 27, 2012 By AMK

Contractors complain about Pentagon limits on labor rates

A key contractors trade group has accused the Pentagon of misinterpreting a 2011 law designed to limit the labor and overhead rates that companies charge for defense weapons and services.

The Professional Services Council in a Sept. 18 letter to Undersecretary of Defense Frank Kendall charged that departmental guidance issued July 31 is misapplying the 2011 National Defense Authorization Act.

The law directed the Defense Department to establish a negotiation objective on contracts for new services or task and delivery orders of $10 million or more, with the aim of capping contractor labor and overhead rates at fiscal 2010 levels.

Keep reading this article at: http://www.govexec.com/contracting/2012/09/contractors-complain-about-pentagon-limits-labor-rates/58244/?oref=govexec_today_nl.

The Air Force has not effectively negotiated depot labor profit at its logistics complex at Robins Air Base in Warner Robins, Georgia, the Defense Department watchdog concluded, missing an opportunity to cut contractor profit and fees by $9.6 million to $24.9 million.

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