(d) the head of the contractual activity (or a senior official if required by Agency procedures) authorises the use in writing. 4. A call for tenders and a contract of indefinite duration: (1) Subject to paragraphs (c) (2) and (3) of this Division, the term of a contract for consultancy and support services, including options or modifications, shall normally not exceed 5 years. The successful tenderer is required to submit the completed insurance certificates on the form provided for in the tender specifications (for coverage and appropriate limits, see BUS-63, Annex D). If the project is covered by the University`s Controlled Assurance Program (PIC), the successful bidder must also complete and submit the application for registration (Form 3 attached to the UCIP Assurance Manual included in the tender documentation). (3) The contractor may not make a final commitment or authorize the contractor to commence work on a contract under a base contract until prices have been fixed, unless the contract sets a maximum price that limits the government`s commitment; and (c) the expected price periods may be such as to reflect the operation of the contractor`s accounting system; and from the time of opening the tender until the time of award of the contract, if a tenderer wishes to contact the owner for questions relating to the tendering procedure, it may do so in writing. A bid bond does not always reflect a contractor`s experience and financial situation. The contractor`s declaration may be used to determine the bidder`s liability if the administrator has reason to question the bidder`s financial capacity despite the submission of a bid guarantee. (c) Implementation. A time and materials contract can only be used if, at the time of ordering, it is not possible to accurately estimate the scope or duration of the work or to forecast costs with reasonable certainty.
See 12.207(b) for the use of time and material contracts for certain commercial services. Procurement is generally a simple agreement in which the most competitive bidder is selected to complete the job. However, this can often lead to legal conflicts, such as: (ii) identifying the award fee evaluation criteria and how they relate to the defined acquisition objectives in terms of contract cost, schedule and technical performance. The criteria should provide an incentive for the contractor to improve performance in the areas evaluated, but not at the expense of at least a minimum acceptable performance in all other areas; This section describes the types of contracts that can be used in procurement. It prescribes policies and procedures and provides guidance on selecting a contract type appropriate to the circumstances of the acquisition. (b) Application. Public servants may enter into an indeterminate quantity contract if the government cannot determine the exact quantities of supplies or services required by the government during the term of the contract beyond a certain minimum and the government is not advised to commit to more than a minimum quantity. The customer must only use a contract with an indefinite quantity if a recurring request is expected. (B) the nature of the additional risks (e.g. inadequate accounting system of the contractor, weaknesses in the contractor`s internal control, non-compliance with cost accounting standards or missing or inadequate revenue management system); and (1) the previous performance of previous engagements under the Agreement, including quality, timeliness and cost control. (b) The different types of open-ended supply contracts offer the following advantages: (3) Methods of procurement of services should be applied as widely as possible in the case of services (see 37.102 (a) and paragraph 37.6).
(a) price competition. Normally, effective price competition leads to realistic prices, and a fixed-price contract is usually in the government`s interest. The contract will be awarded to a bid closer to the average of the proposals. This may apply to public procurement where many proposals are expected and where representative value of the contract is required. [5] A cost-plus contract is a reimbursement contract that provides for a fee that includes (a) a base amount (which may be zero) determined at the beginning of the contract and (b) an additional amount based on government evaluation that is sufficient to motivate excellence in contract performance. Cost-plus contracts are discussed in subsection 16.4, Incentive Contracts. See Article 16.401(e) for a more detailed description and analysis of the operation of these treaties. See 16.301-3 and 16.401(e)(5) for restrictions. (12) When the government-wide commercial acquisition card is used as a means of payment, orders at or below the micro-purchase threshold are exempt from verification by the Adjudication Management System that the contractor has an outstanding debt that is to be collected under the Cash Compensation Program (TOP). (1) The conditions for the use of a fixed-price contract are not fulfilled (see 16.202-2); and (3) other direct costs (e.g., benefits for which no category of work is specified in the contract, travel expenses, computer costs, etc.); and (E) the possibility of post-award reporting in accordance with paragraph (b)(6) of this Section.
(c) Restrictions. A contract at cost plus a fixed price will only be awarded if the principal complies with all the restrictions set out in paragraphs 15.404-4(c)(4)(i) and 16.301-3. (b) price analysis. Price analysis, with or without competition, can be used as a basis for choosing the type of contract. The extent to which price analysis can provide a realistic price standard should be carefully considered. (See 15.404-1(b).) (h) In establishing performance criteria, the contractor shall ensure that it is not rewarded or penalized for the performance of components supplied by the government. See section 16.301 for requirements that apply to all repayment agreements used in conjunction with the following paragraphs. The successful tenderer must provide a performance guarantee equal to the contract amount for the faithful performance of the contract and a payment guarantee for the payment of all obligations arising therefrom. Sureties may be secured by the offeror`s usual sources, provided that the selected guarantee companies meet the requirements of the general and supplementary conditions. 16.201 General. (a) the types of fixed-price contracts provide for a fixed price or, where appropriate, an adaptable price; Fixed-price contracts that provide for a customizable price can include a maximum price, a target price (including the target cost), or both. Unless otherwise provided in the contract, the maximum price or guide price may only be adjusted on the basis of contractual clauses providing for an appropriate or other adjustment to the contract price in certain circumstances.
Unless otherwise specified in subparagraph (b) of Article 12.207, the Contractor shall use fixed-price or fixed-price contracts with economic price adjustment agreements. (b) Time and material contracts and working time contracts are not fixed-price contracts. 16,202 fixed-price contracts. 16.202-1 Description. A fixed-price contract provides for a price that cannot be adjusted based on the contractor`s experience with costs in performing the contract. This type of contract imposes maximum risk and full liability on the contractor for all costs and resulting profits or losses. It provides an incentive for the contractor to control costs and provide efficient services and imposes a minimum administrative burden on the contracting parties. The contractor may use a fixed-price contract in conjunction with a fee incentive (see 16.404) and performance or supply 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 at a fixed price when used with these incentives. 16.202-2 Application. 16,203 fixed-price contracts with economic price adjustment.
16.203-1 Description. (a) A fixed-price contract with economic price adjustment provides for an upward and downward correction of the declared contract price in the event of certain contingencies. There are three general types of economic price adjustments: (1) Fixed price adjustments. These price adjustments are based on increases or decreases from an agreed level of published or otherwise fixed prices of certain items or final contractual headings. (2) Adjustments based on actual labour or material costs.
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