Contract Types
What is the key consideration when choosing a contract type?
Allocating RISK between the Gov't and the Ktr
This type of services contract operates as an employee-employer relationship between the Gov't and Contractor Personnel.
Personal Services
FAR part 36 is contracting for services.
False. FAR 37
What are the 7 exceptions to full and open competition?
Exception 1 - Only one responsible source
Exception 2 - Unusual and compelling urgency
Exception 3 - Industrial mobilization
Exception 4 - International agreement
Exception 5 - Authorized by statute
Exception 6 - National security
Exception 7 - Public interest
A ____________ contract poses the least risk to the Gov't while a ________________ contract poses the most risk to the Gov't.
FFP
CPFF
What are the categories of contract types?
What type of service contract produces a single or unified outcome that cannot feasibly be subdivided for separate performance?
Non-severable Service Contract.
Severable services' POP can cross fiscal years.
True.
What are the 3 key labor laws and when are they used?
Davis-Bacon Act - Construction over $2K
Walsh Healey Public Contracts Act - contracts for materials, supplies etc exceeding $15K
Service contract Act (Service contract labor standards) - Services over $2500
Commercial contracts typically can only be _________ or ____________.
FFP
FFP w/EPA
What cost-reimbursement contract provides for the initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs?
Cost-plus-incentive-fee
Severable services cannot exceed how many months?
12
All Govt service contracts are severable.
False. They are either severable or non-severable.
What is the most preferred Indefinite delivery contract?
Multiple Award IDIQ
______________ ____________ are used when the required supplies or services can be acquired at lower costs and with improved delivery or tech performance by relating the profit or fee to the Ktr's performance
Incentive Contracts
What contract type specifies a target cost, target profit, a price ceiling and a profit adjustment formula?
Fixed Price Incentive Firm
What are 3 characteristics of performance based service contracts?
-PWS -Defines what we want not how to do it
-Measurable Performance Standards - quality, timeliness, quantity, etc
- Performance Incentives where appropriate - includes positive and negative incentives
Incentive contracts are designed to obtain specific objectives to de-motivate the contractor encourage inefficiency.
False. Incentive contracts are designed to obtain specific objectives to motivate the contractor and discourage inefficiency.
When must all non-severable services be funded?
At time of award regardless of length of POP.
Three Types of Indefinite Delivery Contracts are:
Requirements
Indefinite Delivery Definite Quantity (IDDQ)
Indefinite Delivery Indefinite Quantity (IDIQ)
What are 6 factors to consider in determining contract type?
- Acq History
- Competition
- Complexity
- Urgency
- Period of Performance
- Adequacy of Ktr's accounting system
What is an example of a type of:
severable contract and non-severable contract?
Severable - Custodial services, landscaping services, A&AS, IT help desk or monthly Eng support
Non-severable - repair of an engine, R+D efforts, a feasibility study, development of a repair process
Cost reimbursement is the Government's preferred type of contract.
False.
FFP is the preferred method as it provides max incentive for the Ktr to control costs with lowest Admin burden.
At what dollar values are acquisition plans required?
Development (R&D) >$10M
Production (supplies)/Services
>$50M for all years or
>$25M for any Fiscal Year
Elements of a Cost-Plus- Incentive Fee are
________ Cost, ________Fee, Minimum _______,
________ Fee, Share _________
Target Cost
Target Fee
Min Fee
Max Fee
Share Ratio