DFARS Part 16

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Defense Federal Acquisition Regulation Supplement

Part 216--Types of Contracts

TABLE OF CONTENTS

SUBPART 216.1--SELECTING CONTRACT TYPES
216.104 Factors in selecting contract types.
216.104-70 Research and development.

SUBPART 216.2--FIXED-PRICE CONTRACTS
216.203 Fixed-price contracts with economic price adjustment.
216.203-4 Contract clauses.
216.203-4-70 Additional clauses.

SUBPART 216.3--COST-REIMBURSEMENT CONTRACTS
216.306 Cost-plus-fixed-fee contracts.

SUBPART 216.4--INCENTIVE CONTRACTS
216.402 Application of predetermined, formula-type incentives.
216.402-2 Technical performance incentives.
216.403 Fixed-price incentive contracts.
216.403-2 Fixed-price incentive (successive targets) contracts.
216.404 Fixed-priced contracts with award fees.
216.405 Cost-reimbursement incentive contracts
216.405-1 Cost-plus-incentive-fee contracts.
216.405-2 Cost-plus-award-fee contracts.
216.470 Other applications of award fees.

SUBPART 216.5--INDEFINITE-DELIVERY CONTRACTS
216.501 General.
216.505 Ordering..
216.506 Solicitation provisions and contract clauses

SUBPART 216.6--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS
216.603 Letter contracts.
216.603-3 Limitations.
216.603-4 Contract clauses.

SUBPART 216.7--AGREEMENTS
216.703 Basic ordering agreements.

PART 216 TYPES OF CONTRACTS

SUBPART 216.1--SELECTING CONTRACT TYPES

216.104 Factors in selecting contract types.

216.104-70 Research and development.

SUBPART 216.2--FIXED-PRICE CONTRACTS

216.203 Fixed-price contracts with economic price adjustment.

216.203-4 Contract clauses.

216.203-4-70 Additional clauses.

(c) Price adjustment for wage rates or material prices controlled by a foreign government.
(1) The price adjustment clause at 252.216-7003, Economic Price Adjustment--Wage Rates or Material Prices Controlled by a Foreign Government, may be used in fixed-price supply and service contracts when--
(i) The contract is to be performed wholly or in part in a foreign country; and

SUBPART 216.3--COST-REIMBURSEMENT CONTRACTS

216.306 Cost-plus-fixed-fee contracts.

SUBPART 216.4--INCENTIVE CONTRACTS

216.402 Application of predetermined, formula-type incentives.

216.402-2 Technical performance incentives.
Contractor performance incentives should relate to specific performance areas of milestones, such as delivery or test schedules, quality controls, maintenance requirements, and reliability standards.

216.403 Fixed-price incentive contracts.

216.403-2 Fixed-price incentive (successive targets) contracts.

216.404 Fixed-price contracts with award fees.
Award-fee provisions may be used in fixed-price contracts as provided in 216.470

216.405 Cost-reimbursement incentive contracts.

216.405-1 Cost-plus-incentive-fee contracts.

216.405-2 Cost-plus-award-fee contracts.

216.470 Other applications of award fees.
The "award amount" portion of the fee may be used in other types of contracts under the following conditions--

TABLE 16-1, PERFORMANCE EVALUATION CRITERIA

 

Submarginal

Marginal

Good

Very Good

Excellent

A
Time
Of
Delivery

(A-1)
Adherence to
plan schedule.

Consistently late
on 20% of plans.

Late on 10%
plans w/o prior
agreement.

Occasional plan
late w/o justi-
fication.

Meets plan
schedule.

Delivers all plans on schedule & meets prod. change re-quirements on schedule.

 

(A-2)
Action on Ant-
icipated delays.

Does not expose
changes or resolve
them as soon as
recognized.

Exposes changes
but is dilatory in
resolution on
plans.

Anticipates changes, advise
Shipyard but
misses completion
of design plans 10%

Keeps Yard
posted on de-
lays, resolves
independently
on plans.

Anticipates in good time, advises Ship-yard, resolves inde-pendently and meets production schedule/

 

(A-3)
Plan
Maintenance

Does not complete
interrelated systems
studies concurrently.

System studies
completed but
constr. plan
changes delayed.

Major work plans
coordinated in time
to meet production
schedules.

Design changes
from studies and
interrelated plans
issued in time to
meet product
schedules.

Design changes, studies resolved and test data issued ahead of production requirements.

B
Quality
Of
Work

(B-1)
Work
Appearance

25% dwgs. No com-
patible with Shipyard
repro. processes and
use.

20% not com-
patible with Ship-
yard repro. process
and use.

10% no compat-
ible with Ship-
yard repro.
processes and
use.

0% dwgs. pre-
pared by Des.
agent not com-
patible with
Shipyard repro.
processes and
use.

0% dwgs. presented incl. Des. agent, vendors, subcontr. not compatible with Shipyard repro. processes and use.

 

(B-2)
Thoroughness
and Accuracy
of Work.

Is brief on plans
tending to leave
questionable situa-
tions for Shipyard
to resolve.

Has followed
guidance, type
and standard
dwgs.

Has followed
guidance, type
and standard dwgs.
questioning and
resolving doubt-
ful areas.

Work complete
with notes and
thorough explan-
ations for antici-
pated question-
able areas.

Work of highest caliber incorporating all pertinent data required including related activities.

 

(B-3)
Engineering
Competence

Tendency to follow
past practice with
no variation to meet
reqmts. job in hand.

Adequate engrg.
to use & adapt
existing designs
to suit job on hand
for routine work.

Engineered to
satisfy specs.,
guidance plans
and material
provided

Displays excel-
lent knowledge of
constr. reqmts.
considering sys-tems aspect, cost, shop capabilities and procurement
problems.

Exceptional know-
ledge of Naval shipwork & adapt-
ability to work process incorpora-ting knowledge of future planning in Design.

TABLE 16-1 (Continued)

   

Submarginal

Marginal

Good

Very Good

Excellent

B
Quality
of
Work
(Cont'd)

(B-4)
Liaison
Effectiveness

Indifferent to requirements of associated
activities, related
systems, and Ship-
yard advice.

Satisfactory but de-
pendent on Ship-
yard to force resolution of problems w/o
constructive recom-
mendations to sub-
contr. or vendors.

Maintains normal contact with asso-ciated activities depending on Shipyard for prob-
lems requiring military resolution.

Maintains inde-
pendent contact with all associated activities, keeping them informed to produce compat-ible design with little assistance for Yard.

Maintains expert contact, keeping Yard informed, obtaining info from equip., supplies w/o prompting by Shipyard.

 

(B-5)
Independence
and Initiative

Constant surveil-
lance req'd to keep
job from slipping--
assign to low priority to satisfy needs.

Requires occasional
prodding to stay on
schedule & expects
Shipyard resolution
of most problems.

Normal interest and desire to provide workable plans with average assis- tance & direction by Shipyard.

Complete & ac-curate job. Free of incompatibilities with little or no direction by Ship-
yard.

Develops com-plete and accurate plans, seeks out problem areas and resolves with assoc. act. ahead of schedule.

C
Effective-
ness in
Control-ling and/or
Reducing
Costs

(C-1)
Utilization of
Personnel

Planning of work
left to designers on
drafting boards.

Supervision sets &
reviews goals for
designers.

System planning by supervisory, per-sonnel, studies checked by engineers.

Design parameters established by system engineers & held in design plans.

Mods. to design plans limited to less than 5% as result of lack engrg. system correlation.

 

(C-2)
Control Direct
Charges (Except
Labor)

Expenditures no
controlled for
services.

Expenditures re-
viewed occasionally
by supervision.

Direct charges set & accounted for on each work package.

Provides services as part of normal design function w/o extra charges.

No cost overruns on original estimates absorbs service demands by Shipyard.

 

(C-3)
Performance to
Cost Estimate

Does not meet cost
estimate for original
work or changes
30% time

Does no meet
cost estimate for
original work or
changes 20% time.

Exceeds original est. on change orders 10% time and meets original design costs.

Exceeds original est. on change orders 5% time.

Never exceeds estimates or original package or change orders.

TABLE 16-2, CONTRACTOR PERFORMANCE EVALUATION REPORT

Excellent Contract Number
Very good Contractor
Good Date of Report
Marginal PNS Technical Monitor/s
Submarginal

CATEGORY CRITERIA RATING FACTOR RATING FACTOR RATING

A TIME OF DELIVERY

B QUALITY OF WORK

C EFFECTIVENESS IN CONTROLLING

TOTAL WEIGHED RATING

NOTE: Provide supporting data and/or justification for below average or outstanding item ratings.

SUBPART 216.5--INDEFINITE-DELIVERY CONTRACTS

216.501 General.

216.505 Ordering.
Orders placed under indefinite-delivery contracts may be issued on DD Form 1155, Order for Supplies or Services.

216.506 Solicitation provisions and contract clauses.
(d) If the contract is for the preparation of personal property for shipment or storage (see 247.271-4), substitute paragraph (f) at 252.247-7015, Requirements, for paragraph (f) of the clause at FAR 52.216-21, Requirements.

SUBPART 216.6--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

216.603 Letter contracts.

216.603-3 Limitations.
See Subpart 217.74 for additional limitations on the use of letter contracts.

216.603-4 Contract clauses.

SUBPART 216.7--AGREEMENTS

216.703 Basic ordering agreements.

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