Inactive

FAR 17.106-1 states "In determining cancellation ceilings, the contracting officer must estimate reasonable preproduction or startup, labor learning, and other nonrecurring costs to be incurred by an ... FAR 17.106-1 states "In determining cancellation ceilings, the contracting officer must estimate reasonable preproduction or startup, labor learning, and other nonrecurring costs to be incurred by an "average" prime contractor or subcontractor, which would be applicable to, and which normally would be amortized over, the items or services to be furnished under the multi-year requirements. Nonrecurring costs include such costs, where applicable, as plant or equipment relocation or rearrangement, special tooling and special test equipment, preproduction engineering, initial rework, initial spoilage, pilot runs, allocable portions of the costs of facilities to be acquired or established for the conduct of the work, costs incurred for the assembly, training, and transportation to and from the job site of a specialized work force, and unrealized labor learning. They shall not include any costs of labor or materials, or other expenses (except as indicated above), which might be incurred for performance of subsequent program year requirements. The total estimate of the above costs must then be compared with the best estimate of the contract cost to arrive at a reasonable percentage or dollar figure. To perform this calculation, the contracting officer should obtain in-house engineering cost estimates identifying the detailed recurring and nonrecurring costs, and the effect of labor learning." For this requirement the Government is contemplating establishing a cancellation ceiling of $0 as the Government was unable to identify at this time any nonrecurring costs in accordance with the above citation to be incurred under the terms and conditions of this requirement. The Government is seeking Industry input to confirm this approach and/or identify potential nonrecurring costs that may be required. This RFI does not constitute a commitment, implied or otherwise, that a procurement action will be issued. The Government is not obligated to respond to any submissions.The Government is not obligated to review responses to this RFI received after the deadline.Each respondent, by submitting a response, agrees that any cost incurred by it in responding to this RFI, or in support of activities associated with this RFI, shall be the sole responsibility of the respondent. The Government will incur no obligations or liabilities whatsoever, to anyone, for any costs or expenses incurred by the respondent in responding to this RFI. This RFI is not a solicitation for a contract or grants award.