(b) The contracting officer may use a fixed-price contract with economic price adjustment in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on factors other than cost. 16.603-1 Description. (C) How the Government will manage and mitigate the risks. (a) Description. (a) General. (g) Incentive- and Award-Fee Best Practices. (3) Indefinite-quantity contracts limit the Government’s obligation to the minimum quantity specified in the contract. (j) Concurrent contracts. If the order does not exceed the simplified acquisition threshold, the contracting officer need not contact each of the multiple awardees under the contract before selecting an order awardee if the contracting officer has information available to ensure that each awardee is provided a fair opportunity to be considered for each order. (d) The head of the contracting activity (or a higher-level official, if required by agency procedures) approves its use in writing. The final price is subject to a price ceiling, negotiated at the outset. (2) Potential impact on other orders placed with the contractor. 16.402-4 Structuring multiple-incentive contracts. The contracting officer shall, when contracting by negotiation, insert the clause at 52.216-5, Price Redetermination-Prospective, in solicitations and contracts when a fixed-price contract is contemplated and the conditions specified in 16.205-2 and 16.205-3(a) through (d) apply. (1) For agencies other than DoD, NASA, and the Coast Guard, a protest of an order valued in excess of $10 million (41 U.S.C. (1) Except as provided for in paragraphs (c)(2) and (3) of this section, the ordering period of a task-order contract for advisory and assistance services, including all options or modifications, normally may not exceed 5 years. (i) motivate contractor efforts that might not otherwise be emphasized; and (a) A cost-reimbursement contract may be used only when (ii) (3) Expressly provides that the award amount and the award-fee determination methodology are unilateral decisions made solely at the discretion of the Government. 16.101 General. See 16.301-3 for limitations. (5) The total estimated value of the contract is at or below the simplified acquisition threshold; or A fixed-price incentive contract is a fixed-price contract that provides for adjusting profit and establishing the final contract price by application of a formula based on the relationship of total final negotiated cost to total target cost. (2) No requirements contract in an amount estimated to exceed $100 million (including all options) may be awarded to a single source unless a determination is executed in accordance with 16.504(c)(1)(ii)(D). Also see 12.207 (b) for further limitations on use of time-and-materials or labor-hour contracts for acquisition of commercial items. (g) Period of performance or length of production run. It is not surprising, therefore, that not much guidance has been published on the form. This book, first written by John Parris in 1982, and revised in 1985, was widely regarded as a valuable commentary on the Standard Form. (c) Nothing in this subpart restricts the authority of the General Services Administration (GSA) to enter into schedule, multiple award, or task or delivery order contracts under any other provision of law. (b) Application. (10) A written determination by the approving official that one of the circumstances in paragraphs (b)(2)(i)(A) through (E) and (G) of this section applies to the order. (a) Description. The basic agreement shall be incorporated into the contract by specific reference (including reference to each amendment) or by attachment. However, a letter contract should be as complete and definite as feasible under the circumstances. (2) Adequate cost or pricing information for establishing reasonable firm targets is available at the time of initial contract negotiation. (2) A cost-plus-fixed-fee contract normally should not be used in development of major systems (see part 34) once preliminary exploration, studies, and risk reduction have indicated a high degree of probability that the development is achievable and the Government has established reasonably firm performance objectives and schedules. (3) If the contract includes subsistence for both Government use and resale in the same Schedule, and similar products may be acquired on a brand-name basis, use the clause with its Alternate II (but see paragraph (d)(5) of this section). (ii) There is no major element of design engineering or development work involved. (1) The factors in 16.104 have been considered; (D) The justification is subject to the screening requirement in paragraph (b)(2)(ii)(D)(4) of this section. The objective is to negotiate a contract type and price (or estimated cost and fee) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance. (2) The nature of the supplies or services being acquired and other circumstances of the acquisition are such that the contractor’s assumption of a degree of cost responsibility will provide a positive profit incentive for effective cost control and performance; and In this case, the subcontractor attempted to recover under two types of implied contract, both of which travel under the name “quantum meruit”: contract implied-in-fact; and unjust enrichment. (B) Formal evaluation plans or scoring of quotes or offers are not required. 4101, requirements contracts and indefinite-quantity contracts are also known as delivery-order contracts or task-order contracts. A time-and-materials contract provides for acquiring supplies or services on the basis of- (1) Direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and (b) Retroactive price redetermination within the ceiling after completion of the contract. (ii) The contract is for development and test, and using a cost-plus-incentive-fee contract is not practical. Any such amendment is subject to the same requirements and limitations as a new letter contract. (i) Seeking comments from two or more contractors on draft statements of work; Incentive contracts are designed to obtain specific acquisition objectives by-, (1) Establishing reasonable and attainable targets that are clearly communicated to the contractor; and, (2) Including appropriate incentive arrangements designed to-, (i) motivate contractor efforts that might not otherwise be emphasized; and. (i) When disclosure would compromise the national security (e.g., would result in disclosure of classified information) or create other security risks; or (c) Limitations. A Cost reimbursable arrangement is used at the PRIME. Looking at all the responses, it appears our company CAN utilize a CR type agreement for SUBS... Both types of teaming arrangements are typically formed before a prime contractor submits an offer to the government, but they can also be entered into later in the procurement process, including after the federal government awards the contract (48 C.F.R. (ii) The extension is necessary to ensure continuity of services, pending the award of the follow-on contract. It is essential that the uncertainties involved in performance and their possible impact upon costs be identified and evaluated, so that a contract type that places a reasonable degree of cost responsibility upon the contractor can be negotiated. (c) Since this contract type provides the contractor no cost control incentive except the ceiling price, the contracting officer should make clear to the contractor during discussion before award that the contractor’s management effectiveness and ingenuity will be considered in retroactively redetermining the price. (a) There is adequate price competition; (1) A clause providing adjustment based on cost indexes of labor or materials may be appropriate when- (1) Government surveillance. This ceiling price should provide for assumption of a reasonable proportion of the risk by the contractor and, once established, may be adjusted only by operation of contract clauses providing for equitable adjustment or other revision of the contract price under stated circumstances. (i) Consider work in process and materials on hand at the time of changes in labor rates, including fringe benefits (if any) or material prices; (3) In the case of an order permitted under paragraph (b)(2)(i)(A) of this section, the justification shall be posted within 30 days after award of the order. See 16.301-3. (4) If the contract involves a partial small business set-aside, use the clause with its Alternate III (but see paragraph (d)(5) of this section). (b) Application. (a) Description. 16.203-4 Contract clauses. (i) A fixed-price contract is contemplated. A fixed-price incentive (successive targets) contract is appropriate when- If performance under the proposed contract involves concurrent operations under other contracts, the impact of those contracts, including their pricing arrangements, should be considered. (a) There are three types of indefinite-delivery contracts: definite-quantity contracts, requirements contracts, and indefinite-quantity contracts. (C) The requirements in paragraph (a)(4)(iii)(A) of this section do not apply when disclosure would compromise the national security (e.g., would result in disclosure of classified information) or create other security risks. (ii) The requirements of paragraph (c)(2)(i) of this section do not apply if the contracting officer or other official designated by the head of the agency determines that the advisory and assistance services are incidental and not a significant component of the contract. (A) (3) There is reasonable assurance that additional reliable information will be available at an early point in the contract performance so as to permit negotiation of either (i)a firm fixed price or (ii) firm targets and a formula for establishing final profit and price that will provide a fair and reasonable incentive. (b) Compel trade-off decisions among the incentive areas, consistent with the Government’s overall objectives for the acquisition. (4) The amount of time contractors need to make informed business decisions on whether to respond to potential orders. (2) Document the decision in the contract or order file; and As a minimum, each justification shall include the following information and be approved in accordance with paragraph (b)(2)(ii)(C) of this section: (i) Government stocks to be maintained at minimum levels; and (ii) Discuss the Government’s additional risks and the burden to manage the contract type selected (e.g., when a cost-reimbursement contract is selected, the Government incurs additional cost risks, and the Government has the additional burden of managing the contractor’s costs). 16.207-1 Description. 501: Subcontract — Master Agreement Use this contract for the general terms and conditions that are to apply to all subcontract agreements regardless of specific job specifications — to be supplemented by individual work orders, i.e., the job acceptance form — parties are the general contractor and the subcontractor… Prime agreement, the contracting officer has made the determination specified in the best interests of the type of agreement... 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Precedence over this subpart prescribes policies and procedures for establishing and using a contract. Process for construction claims and disputes are likely to Motivate the contractor seeks... Specifies a target fee, minimum and maximum fees, and shipping instructions any adjustment under contract... For the contractor is known as delivery-order contracts or task-order contracts for advisory and assistance.. Supply Schedule program in subpart 15.3 do not send any confidential information to us until time... Statutes are implemented in Federal acquisition regulation ( “ FAR ” )....
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