(g) the period of execution or the duration of production. In times of economic uncertainty, contracts that extend over a relatively long period of time may require an economic price adjustment or price revaluation clauses. 16.207-1 Description. A fixed-price, fixed-price, effort-based contract requires: (a) the contractor to make some effort over a period of time for work that can only be reported generally; and (b) the government pays the contractor a fixed amount in dollars. 16.207-2 Request. A fixed-price contract with a duration of effort is appropriate for the investigation or investigation in a specific area of research and development. The contract proceeds are usually a report that shows the results achieved by applying the required effort. However, payment is based on effort and not on results. 16.207-3 Restrictions. This type of contract may only be used if: (a) the work required cannot be clearly defined otherwise; (b) the effort required is determined and agreed in advance; (c) there is reasonable assurance that the desired result cannot be achieved if less than the prescribed effort is expended; and (d) The contract price is the simplified purchase threshold or less, unless the head of the contract office agrees.
(ii) Where the negotiation of a fixed price is not appropriate, they may negotiate a formula to determine the final price using the fixed target costs and the fixed target profit; The final costs are then negotiated at closing, and the final profit is determined by the formula, as under the fixed price incentive agreement (fixed target) (see 16 403-1 above). (2) The amount and type of profit incentive offered to the contractor to meet or exceed certain standards or objectives. 2. Individual contracts clearly describe all the services or supplies to be provided so that the total cost or price of performing the work can be determined when placing the order. Orders must be placed within the frame, within the fulfillment period and within the maximum value of the order. (d) The maximum liability of the Government inserted in section 52.216-24, Limitation of Government Liability, is the estimated amount necessary to meet the contractor`s capital requirements prior to the definition. However, it may not exceed 50 per cent of the estimated cost of the final contract, unless the staff member who approved the contract letter gives prior authorization. Description. A working hours contract is a variation of the time and material contract that differs only in that the materials are not provided by the contractor. See 12.207(b), 16.601(c) and 16.601(d) for the application and restrictions, for time and material contracts, which also apply to hourly employment contracts. See 12.207 (b) for the use of working time contracts for certain commercial services. (d) Completed and enforcement forms.
A contract with a fixed cost plus fee can take one of two basic forms: closure or duration. (i) with the exception of contracts of indefinite quantities for advisory and support services referred to in point (c)(2) of this Section, the contracting entity shall give preference to the maximum possible multiple award of contracts of indefinite quantities in the context of a single invitation to supply identical or similar supplies or services to two or more sources. (1) Previous services for previous orders under the contract, including quality, timeliness and cost control. (a) The choice of the type of contract is usually a matter of negotiation and requires good judgment. The negotiation of the type of contract and the negotiation of prices are closely linked and must be considered together. The objective is to negotiate a type of contract and a price (or estimated costs and fees) that entail a reasonable risk for the contractor and that most encourage him to perform efficiently and economically. 2. The restriction provided for in point (d)(1) of paragraph 1 of this Section shall not apply to the purchase of supplies or services involving the purchase of advisory and support services where the contracting entity or another official designated by the Head of the Agency determines that the advisory and support services are necessarily contract-related. The supply contract is a delivery contract that does not provide or stipulate a fixed quantity of deliveries (other than a minimum or maximum quantity) and provides for the placing of orders for the delivery of deliveries during the term of the contract. (3) Adjustments based on labour or material cost indices. These price adjustments are based on increases or decreases in standards or cost indices of labor or materials expressly stated in the contract. Keep in mind that this may or may not be profitable.
If the contractor typically charges $35 per box, that`s less than what the contractor usually does for items. However, if the contractor usually charges $30, this is a cost-effective option. Obviously, this is a relatively simple example, but it illustrates the advantages and disadvantages of this type of fixed contract, because there is some risk for the contractor if its costs exceed what the government is willing to pay. (d) the public procurement officer (or a senior official where required by the Agency`s procedures) agrees to the use in writing; 2. Give all contractors who have responded to the notice a fair opportunity to submit a tender and to consider that tender in a fair manner. (3) The condition of a provision for an individual contract of more than $100 million- (5) If the contract is with a non-profit organization that is not an educational institution, state or local government, or a non-profit organization exempted under the OMB Uniform Guidelines in 2 CFR Part 200, Annex VIII, the contract agent must use the clause of 52.216-7 with his assistant IV. 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. (c) The supply system based on cost plus one per cent of costs cannot be applied (see 10 U.S.C.2306(a) and 41 U.S.C.3905(a)). Master contracts (including contracts to the letter), which are not fixed-price contracts, prohibit subcontracts with costs plus a percentage of costs by means of a corresponding clause (see the clauses in subsection 44.2 for reimbursement contracts and subsections 16.2 and 16.4 for fixed-price contracts). (i) The contract includes an extended period of service with significant costs exceeding 1 year after the start of service; (3) The Principal shall not make a final commitment or authorize the Contractor to commence work on a Contract under a Basic Contract until the prices are fixed, unless the Order sets a maximum price that limits the Government`s obligation, and either – (a) The clause under 52.216-16, Incentive Price Review – Firm Objective, are included in calls for tenders and contracts for which a fixed-price incentive contract (fixed objective) is envisaged. If the contract provides for the order of supplies or services under a supply document or government option and the prices are subject to the revision of the incentive price in accordance with the clause, the customer will use the clause with his representative I.
(h) See paragraph 10.001(d) for the insertion of the clause in paragraph 52.210-1, Market Research, if the contract is greater than $6 million for the purchase of items other than commercial items. (a) motivate the contractor to strive for exceptional results in all areas of incentive; and (a) performance incentives may be considered in conjunction with certain product characteristics (e.g. B, a missile range, aircraft speed, engine thrust or vehicle maneuverability) or other specific elements of the contractor`s performance. Such incentives should be designed in such a way as to establish a link between the profit or fee and the results achieved by the contractor in relation to the objectives set. (B) services for which prices are fixed in the contract for the specific tasks to be performed; The contractor exceeded almost all the essential criteria of the award fee and met the total cost, schedule and technical performance requirements of the contract as defined and measured by the criteria of the procurement royalty plan for the evaluation period of the award fee. (3) The combination of resources that a contractor must have to meet the requirements for tasks or delivery notes. (3) Other direct costs (e.B. ancillary services for which there is no category of work specified in the contract, travel expenses, computer use costs, etc.); and (a) price competition. Usually, effective price competition leads to realistic prices, and a fixed-price contract is usually in the interest of the government. If labor or material costs change, it could also impact how much a contractor could be paid.