“Sorry but you are wrong. The way DCCA accounting rules work contractors can go back and get more money.”
There are accounting rules and then there’s the details of the contract you signed. One of the contracting managers I knew has a sign on her desk. “Knowledge is what you gain by reading the contract. Experience is what you gain when you don’t.” So, it depends on the contract you signed. Companies I’ve worked for have been on both the knowledge and experience side of the equation. While what I wrote is not 100% true in all cases; nor is it 100% wrong. In the end, what did your company sign up to? Hopefully, if they’re on the experience side of the equation, they’ll survive to the next negotiation.
However, in the end, no matter how you look at it, Obama increased costs to the government. (Meaning taxpayers will pay for a benefit they mostly won’t get to use themselves.)
The contract is important but it sounds like your contracts person got bluffed.
It always comes back to “defective bidding”. Under the DCCA rules if your company bid and won a contract with a lower overhead than is proper, that is a defective bid.
The real labor rates are almost never challenged because they are so easy to calculate. Ditto with G&A.
The real fun starts with allowable overhead. Obama’s little stroke of the pen just increased the allowable overhead by 0.385%.
When you add in all of the other junk he has added, sensitivity training (many forms), allowable, remodeling for transgender bathrooms, allowable, energy LEEDS compliance, allowable, etc. the money really adds up for absolutely no value to the tax payer. But to be compliant and keep the contract it must be done.
In fact this opens the door to renegotiate existing contracts.