FAR provides for audit of the way of arriving at the fixed price (if I said
"finding the specific clause is an exercise left to the student", would you
realize I can't remember it off the top of my head!).  Based on that, and
the fact that CAS requires consistency in estimating (in this case
consistent with the way we estimate other projects), VCU has adopted the
position that any FIXED PRICE or FIXED UNIT PRICE may be audited, BUT
SOLELY AS TO THE WAY IN WHICH THE PRICE WAS ESTIMATED.

Chuck

At 01:09 PM 2/15/99 -0600, Martha Taylor wrote:
>Dear Colleagues:
>
>I am looking forward to some lively debate over this question.  I know it
>has started some interesting discussions here.
>
>"Can we have a Firm Fixed Price agreement which also contains provisions
>for examination of records/audit?"
>
>I say, "yes - with no opportunity to comment on actual cost experience or
>to disallow costs".  Those on the accounting side of the house say,
>"absolutely not" and refuse to invoice accordingly.
>
>As you might expect, it is sometimes difficult to get an agreement changed
>to "fix" this .
>
>
>What do you think?
>-----------------------------------------------------------------
>Martha M. Taylor, Director
>Contracts and Grants Administration
>310 Samford Hall
>Auburn University, AL 36849-5131
>
>334-844-4438
>334-844-5953 (fax)
>
>(xxxxxx@mail.auburn.edu)
>
>
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Herbert B. Chermside, CRA
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Virginia Commonwealth University
PO BOX 980568
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