(1) Before placing an order under a basic contract, the contract representative – e) Combine the types of contract. Where the entire contract cannot be fixed, the contracting entity shall examine whether or not part of the contract can be fixed on the basis of a fixed fixed price. (1) The clause of 52.216-23, execution and commencement of work, except that this clause may be omitted from the letters of contracts awarded on SF 26; (ii) Indicate the total minimum and maximum quantity of supplies or services that the Government will purchase under the contract; (1) Previous services for previous orders under the contract, including quality, timeliness and cost control. (1) Except as provided in subsection (b) (2) (ii) (D) (5) of this Section, the agent shall, within 14 days after the order, exceed the simplified acquisition threshold that does not provide equitable opportunities under 16,505 (b), (4) If the contract is with a state or local government, the contract agent shall use clause 52.216-7 with his or her Deputy III. (a) The government and contractors must have a wide choice of types of contracts. provide the necessary flexibility in acquiring the wide variety and breadth of supplies and services requested by organizations. The types of contracts vary depending on the expected (b) price revaluation for subsequent service periods at a certain time or at certain times of performance. (A) an analysis of the reasons why the use of a contract other than a fixed-price contract (e.B. reimbursement, time and equipment, hours of work) is appropriate; (B) services for which prices are fixed in the contract for the specific tasks to be performed; 3. The contract may also specify the maximum or minimum quantities that the Government may order under any contract or supply order and the maximum quantities that the Government may order during a given period. B) a justification detailing the specific facts and circumstances (e.g. B, the complexity of the requirements, the uncertain duration of the work, the technical capacity and financial responsibility of the contractor or the adequacy of the contractor`s accounting system) and the related reasoning that is essential to support the choice of the type of contract; (a) Description. A cost contract is a cost reimbursement contract in which the contractor receives no remuneration.
(b) The procuring entity may use a fixed-price procurement with an economic adjustment of prices in conjunction with a premium (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) if the surcharge or incentive is based solely on factors other than cost. The type of contract remains fixed price with economic adjustment of prices when used with these incentives. This contract is used when the risk needs to be transferred to the builder and the owner wants to avoid change orders for unspecified work. However, a contractor must also disclose certain percentages of costs associated with bearing this risk. These costs are hidden in the fixed price. With a lump sum contract, it`s harder to get credit for unfinished work, so keep that in mind when analyzing your options. (ii) The Agreement only provides for fixed-price supply contracts or orders (see 16.202): (1) The principal shall include the provision referred to in sections 52.216-29, Time requirements and materials/proposals for hours of work – Acquisitions of non-commercial items with adequate price competition, in applications contemplating the use of a time and materials contract or an hour of work contract for non-commercial items if the price is supposed to be based on reasonable price competition. Where permitted by the Agency`s procedures, the contract staff may amend the provision in order to make one of the three approaches referred to in point (c) of the provision mandatory and/or to require the identification of all subcontractors, services, subsidiaries or related undertakings involved in a mixed work package. (iii) For supplies and services, item number, subheading number (if applicable), description, quantity and unit price, or estimated costs and charges (if applicable).
The corresponding extension number and the subheading number of the basic contract shall also be indicated. 16.205-1 Description. A fixed-price contract with a planned price revaluation shall provide for: (a) a fixed fixed price for an initial period of supply or performance of the contract; and (b) the expected recalculation of the price for subsequent periods of service at a specific time or times during the service. 16.205-2 Request. A fixed-price contract with a planned price realignment may be used in the purchase of volume production or services for which it is possible to negotiate a fair and reasonable fixed price for an initial period, but not for subsequent performance periods. (a) the initial period should be the longest period for which a fair and reasonable fixed price can be negotiated; Each subsequent pricing period must be at least 12 months. (b) The contract may provide for a maximum price based on an assessment of the uncertainties associated with the service and its possible impact on costs; That maximum price should provide for the assumption by the contractor of a reasonable part of the risk and, once established, can only be adjusted by applying contractual clauses which provide for an appropriate adjustment or other modification of the contract price in certain circumstances. 16.205-3 Restrictions. This type of contract can only be used if (a) it has been determined during the negotiations that: (1) the conditions for the use of a fixed-price contract are not met (see 16.202-2); and (2) a fixed-price incentive contract would not be more appropriate; (b) the contractor`s accounting system is suitable for pricing; (c) the planned charging periods may be designed in such a way as to correspond to the functioning of the contractor`s accounting system; and (d) there is reasonable assurance that price revision measures will be taken immediately at the times indicated. 16.205-4 Contractual clause.
The Agent shall insert clause 52.216-5, Price Demand Prospective, in invitations and contracts when entering into contracts by negotiation and the conditions set out in 16.205-2 and 16.205-3(a) to (d). Unfortunately, costs plus contracts can face disputes over the calculation of prices. Entering into a cost-plus contract requires both parties to clearly define their terms in comprehensive detail. A full breakdown of indirect and overhead costs is almost always required in a cost-plus contract. Fixed prices may take longer in advance for sellers to determine the price of each item. However, fixed-price items can be purchased faster in each case, but negotiations could set the price for a whole bunch of purchased items, thus shortening the time for those bulk purchases that are treated as an entire batch. .