Customer Phrases Of Service
A firm-fixed-value contract provides for a price that is not topic to any adjustment on the premise of the contractor’s price experience in performing the contract. This contract type locations upon the contractor maximum danger and full responsibility for all prices and ensuing revenue or loss. It supplies most incentive for the contractor to regulate costs and perform effectively and imposes a minimal administrative burden upon the contracting parties. The contracting officer may use a firm-fixed-value contract in conjunction with an award-payment incentive (see 16.404) and performance or supply incentives (see 16.402-2 and 16.402-three) when the award payment or incentive relies solely on factors other than price.
Task-order contract means a contract for services that doesn’t procure or specify a firm quantity of services and that provides for the issuance of orders for the performance of tasks during the period of the contract. The statutory multiple award preference carried out by this subpart does not apply to architect-engineer contracts topic to the procedures in subpart 36.6. However, agencies usually are not precluded from making a number of awards for architect-engineer services utilizing the procedures on this subpart, provided the number of contractors and placement of orders are consistent with subpart 36.6. If negotiation of a agency fixed price is inappropriate, they may negotiate a method for establishing the ultimate price utilizing the firm target price and agency goal revenue. The final price is then negotiated at completion, and the final profit is established by formulation, as under the mounted-price incentive contract (see 16.403-1 above).
Psychological Pricing
To the maximum extent practicable, constructive and adverse performance incentives shall be thought-about in connection with service contracts for efficiency of objectively measurable tasks when quality of performance is critical and incentives are likely to encourage the contractor. Incentive- and Award-Fee Data Collection and Analysis. This info should be thought of as a part of the acquisition planning course of (see 7.one hundred and five) in figuring out the suitable type of contract to be utilized for future acquisitions. The amount of award payment earned shall be commensurate with the contractor’s general value, schedule, and technical performance as measured towards contract requirements in accordance with the criteria acknowledged within the award-fee plan.
Justifications for the use of model-name specs have to be accomplished and approved on the time the requirement for a model-name is determined. Is not relevant for architect-engineer providers awarded pursuant to subpart 36.6. No requirements contract in an amount estimated to exceed $one hundred million may be awarded to a single source unless a dedication is executed in accordance with sixteen.504. The supplies or services are frequently available or will be out there after a brief lead time. Indefinite-amount contracts limit the Government’s obligation to the minimum quantity specified within the contract. Nothing in this subpart restricts the authority of the General Services Administration to enter into schedule, multiple award, or task or supply order contracts underneath any other provision of regulation.
Goal Pricing Business
The formula supplies, within limits, for will increase in payment above goal fee when complete allowable prices are less than target costs, and decreases in fee under target charge when whole allowable costs exceed goal costs. This improve or lower is intended to provide an incentive for the contractor to handle the contract effectively. When total allowable cost is greater than or lower than the vary of costs inside which the payment-adjustment method operates, the contractor is paid complete allowable costs, plus the minimum or most fee.