If the contracts period of performance or length of

This preview shows page 132 - 135 out of 186 pages.

If the contract’s period of performance or length of production run extends over a long period of time, a contract type that allows for an economic price adjustment or price redetermination would likely be appropriate if there is economic uncertainty [FAR 16.104(g)]. If only a portion of the contract would be affected by volatile prices due to the contract length, the contracting officer can use a combination of contract types and apply the economic price adjustment provision to only that portion of the contract. For other than FFP pricing arrangements, the contracting officer must ensure that the contractor’s accounting system is adequate to develop the cost data necessary for the proposed contract type [FAR 16.104(i)]. FP with price redetermination, FPI, and all CR contract types require a contractor to have an adequate accounting system as a limitation for their use. A contracting officer must consider the acquisition history for a requirement for multiple reasons. When selecting a contract type for the new procurement, the contracting officer can review what went well, and not so well, for the previous buys and contract types used. Also, contract performance risk usually decreases as the requirement is repetitively acquired because there is more data available to develop reasonable and realistic cost estimates and the requirement should be able to be clearly defined. The more mature the requirement, the more likely a contracting officer should be able to use a FP pricing arrangement. Contracting officers should avoid prolonged use of CR or T&M and LH contract types after experience provides a basis for firmer pricing [FAR 16.103(c)].
CON091 CONFUN 23 Module 3 v2.7R Documenting the Selection of a Contract Type Each contract file must include documentation that includes the rationale for why the particular contract type, or combination of contract types, was selected. This rationale must be documented in the acquisition plan, or in the contract file if a written acquisition plan is not required [FAR 16.103(d)(1)]. This documentation must include the following for most contract types: Explanation of why the selected type(s) must be used to meet agency needs. Discussion of the Government’s additional risks and administrative burden for the selected type(s), to include: - How the Government identified the additional risks; - The nature of the additional risks; and - How the Government will manage and mitigate the risks. Identification of the Government resources necessary to properly plan for, award, and administer the contract type(s) selected. Discussion of why any level-of-effort, price redetermination, or fee provision was included. [FAR 16.103(d)(1)] This documentation is not required for FP acquisitions using simplified acquisition procedures (SAP); FFP contracts, except for those for major systems or R&D; and awards on the set-aside portion of a sealed bid that is partially set aside for small business [FAR 16.103(d)(2)].
CON091 CONFUN 24 Module 3 v2.7R The documentation for why a particular contract type was selected is more extensive if

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture