Just as with my Quick Hitter series with the FAR, my Quick Hitter series on the GSAR is meant to simplify contracting business with the government. This time with GSA.
GSAR 549.402 Termination Of Fixed-Price Contracts For Default
GSAR 549.402-6
The government calls it a repurchase. Commercial calls it a buyback. The CO must document why the government is repurchasing equipment and supplies and why. The reasoning will not just state that the contractor could not perform the work. The rationale must include why the contractor cannot perform the work. Original contract terms must be used in the explanation. Lawyers must be consulted before reissuing this solicitation to redo the procurement. Any delays must be documented thoroughly. Repurchase is essential so the government can maximize taxpayer dollars. It is a win-win situation for them because they are re-buying supplies at pennies on the dollar.
GSAR 549.402-7
Not only are supplies repurchased at a discount. Reprocurement costs are issued as well. A summary of costs is totaled and placed in a demand letter.
Administrative costs include,, but are not limited to; salary/ fringe benefits of federal personnel who perform work because of contractor default, pre-award survey expenses incurred by qualified firms because the process must be repeated, printing/distribution costs of the reprocurement and post-award process and travel/per diem.
Information summarizing administration labor costs must include personnel name, their job title, date(s) work was performed, time spent, description of task, standard hourly rate (include OT multiplier/OT hours with amount), applicable fringe benefits and an explanation of what reprocurement action(s) took federal personnel away from. The CO must provide supporting documentation for all incurred administrative expenses for the reprocurement process.
This is why construction companies don’t want to bite off more than they can chew when bidding on a federal project. They have to be sure they can do it. They shouldn’t be taking a risk. Otherwise, it could cost them a significant amount of money instead of making a significant amount of money.
I’m very thorough. I will advise you which turn to take in every fork of the road. I promise not to be that annoying GPS voice that continually tells you that I’m recalculating.
If you think I can help you then email Nicholas.S.Robertson@outlook.com for your introductory email and free consultation.

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