AFFARS Part 5316

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PART 5316-TYPES OF CONTRACTS

TABLE OF CONTENTS

SUBPART 5316.2-FIXED-PRICE CONTRACTS 16-1

SUBPART 5316.3-COST-REIMBURSEMENT CONTRACTS 16-3

SUBPART 5316.4-INCENTIVE CONTRACTS 16-3

SUBPART 5316.5-INDEFINITE-DELIVERY CONTRACTS 16-3

SUBPART 5316.6-TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS 16-5

SUBPART 5316.7-AGREEMENTS 16-5

SUBPART 5316.90-REQUIREMENTS AND INDEFINITE-QUANTITY CONTRACTS 16-5

PART 5316-TYPES OF CONTRACTS

SUBPART 5316.2-FIXED-PRICE CONTRACTS

(c) Adjustments based upon cost indexes of labor or material. Recognized adjustments based upon cost indexes of labor and material are the abnormal escalation index method and the constant dollar index method.

Priced options are considered part of the period of contract performance when considering stability of market or labor conditions that will exist during an extended period of contract performance.

(d) Adjustments based on cost indexes of labor or material.

Solicitations contemplating the use of fixed-price contracts with prospective price redetermination shall be approved by SAF/AQC before issuance. Approval requests shall explain why alternate type contracts such as fixed-price-incentive (successive targets) are considered to be inappropriate.

In each firm-fixed-price, level-of-effort (FFPLOE) contract over $100,000, the contracting officer shall require the contractor to maintain all necessary records of the actual level of effort provided and make such records available for inspection by the contracting officer or designee. Such inspection may be visual, by audit, or other reasonable means as deemed necessary by the contracting officer. Contracting officers may include this requirement in FFPLOE contracts of $100,000 or less.

(a) A FFPLOE type contract shall not be used in acquisitions over $100,000, unless other contract types are clearly not appropriate and the rationale for its use is included in the approval of the chief of the contracting office.

(b) In no event may the following special price adjustment provisions be used with FFPLOE contracts without obtaining a deviation from FAR 16.207: (1) any provision which would adjust the contract price proportionally when actual hours (or other measure of time) expended differ from the number required by the contract; and (2) any provision which adjusts the initial definitive contract price so that the final price paid is the total actual allowable cost plus a predetermined profit amount.

The contracting officer shall request the administrative contracting officer to administer each FFPLOE contract as if it were a time-and-materials contract; except that the request need not be made on actions $100,000 or less if the contracting officer determines the circumstances of the acquisition do not justify additional surveillance and the contract file is so documented.

(a) Fixed-price incentive contracts.

(b) Firm-fixed-price contracts. Normally within 30 days after actual index values required by the EPA clause become available, the contracting officer shall calculate the amount of the EPA, advise all interested parties, and initiate a supplemental agreement with the contractor to recognize the EPA, unless otherwise required by the EPA clause.

SUBPART 5316.3-COST-REIMBURSEMENT CONTRACTS

SUBPART 5316.4-INCENTIVE CONTRACTS

(a) While the Government is solely responsible for determining the award fee to be paid, contractors shall be afforded appropriate opportunity to participate in the Government's award fee decision/determination process. The contractor's role in the Government's pre-decisional process may include, but is not limited to:

(c) Billing prices. When actual cost performance data is not directly reported to the contracting officer and the administrative contracting officer (ACO) has sufficient knowledge of such data, the contracting officer shall, whenever possible, delegate to the ACO authority to negotiate downward adjustments in billing prices (see FAR 42.302 (b)(6)). Contracting officers shall retain the authority to negotiate upward adjustments in billing prices.

SUBPART 5316.5-INDEFINITE-DELIVERY CONTRACTS

(d) Limitations on use of requirements contracts for advisory and assistance services.

(a) Description. The rules for indefinite-quantity contracts also apply to indefinite-quantity contract line item numbers (CLINS) contained in other types of contracts.

(b) Application. Funds are obligated by each order, including the minimum, not by the contract itself.

(c) Limitation on ordering period for task order contracts for advisory and assistance services.

(a) For contracts that authorize decentralized ordering (i.e., ordering by a contracting office at any other location), the contracting officer with overall responsibility for the contract shall:

(b) The control procedures shall ensure that ordering offices adhere to contract terms and conditions and prevent or identify any abuses, such as issuance of orders for items that are not covered in the basic contract. Control procedures should be tailored to the given circumstances. Generally, the control procedures should:

(c) In exercising oversight, the responsible contracting officer shall:

(d) The order initiating contracting officer shall:

The contracting officer shall insert a clause substantially the same as the clause at 5352.216-9001, Awarding Orders Under Multiple Award Contracts, in solicitations and contracts for multiple award task and delivery order contracts.

SUBPART 5316.6-TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

(c) See Subpart 5317.74 for policy and procedures pertaining to undefinitized contractual actions.

SUBPART 5316.7-AGREEMENTS

(c) Limitations.

(d) Orders. Each BOA shall include a provision that requires the contractor to submit a price proposal for any unpriced orders, normally within 30 days after receipt of the order, but no later than 60 days after receipt. If the contracting officer determines that a longer period is necessary, the contract file shall be so documented. See Subpart 5317.74 concerning undefinitized contractual actions.

SUBPART 5316.90-REQUIREMENTS AND INDEFINITE-QUANTITY CONTRACTS

"Technical direction," as used in this subpart, means the advisory process by which the contracting officer's designated representative provides clarification to a contractor for accomplishing work under an order. Technical direction may be oral or in writing, but cannot, in itself, be contractually binding nor may it change the terms or conditions of the contract or order.

(a) Requirements or indefinite-quantity contracts shall not be used:

(b) Orders may not be used to increase the scope, period of performance, or maximum dollar value of the basic contract. Such changes shall be made only by modifying the contract after obtaining appropriate justifications and approvals. Changes to individual orders may be made by modification to the order or by issuance of a new order, as appropriate.

(a) When issuing orders, the contracting officer shall:

(b) Prior to award of a requirements or indefinite-quantity contract, the contracting officer shall establish procedures for users to request the issuance, award, or modification of an order.

(c) During performance of a requirements or indefinite-quantity contract, the contracting officer shall:

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