An Incentive Contract (FAR Subpart 16.4) is appropriate when a Firm-Fixed-Price (FFP) contract is not appropriate and the required supplies or services can be acquired at lower costs and relating the amount of profit or fee payable under the contract to the contractor’s performance. Purpose of Incentive Contracts The purpose of an Incentive contract is […]
The Federal Acquisition Regulations (FAR) are divided into 53 parts and organized into eight (8) Subchapters designated A through H. Each part is then divided into subparts, sections, and subsections, with further divisions below the subsection level. Website: Federal Acquisition Regulation Index Subchapter A—General Part 1—Federal Acquisition Regulations System Part 2—Definitions of Words and Terms
A Firm-Fixed-Price (FFP) (FAR Subpart 16.2) contract provides for a price that is not subject to any adjustment based on the contractor’s cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss. It provides maximum incentive for the contractor
The Economy Act (31 U.S.C. 1535) authorizes agencies to enter into agreements to obtain supplies or services by Interagency Acquisition. The Economy Act also provides authority for the placement of orders between major organizational units within an agency; procedures for such intra-agency transactions are addressed in agency regulations. The Economy Act applies when more specific
The Defense Federal Acquisition Regulations Supplement (DFARS) is the official DoD regulator supplement to the Federal Acquisition Regulations (FAR). A Program Manager (PM) and Program Contracting Officer (PCO) must understand the FAR’s and DFARS’s that pertain to their program. Website: DFARS Table of Content The Defense Federal Acquisition Regulations Supplement (DFARS) Procedures, Guidance, and Information
Data Rights (FAR Subpart 27.4) consist of the legal rights a contractor and/or the government have to use technical, Intellectual Property (IP), and software data. This data can include a proposal, source selection, software, management, concepts, and technical packages. Definition: Data Rights refer to the Government’s nonexclusive license rights in two categories of valuable intellectual
A Cost-Reimbursement contract (FAR Subpart 16.3) is a type of contract that provides for payment of allowable incurred costs to the extent prescribed in the contract. These contracts establish an estimate of the total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own
Note: The Integrated Program Management Report (IPMR) has replaced the Contractor Performance Report (CPR) for new contracts as of July 1, 2012. The Contractor Performance Report (CPR) provides contract cost and schedule performance data that is used to identify problems early on an acquisition contract and forecast future contract performance in Earned Value Management (EVM).
The Contractor Performance Assessment Reporting System (CPARS) is a web-enabled application that collects and manages the library of automated contractor assessment data. A Contractor Performance Assessment Report (CPAR) assesses a contractor’s performance and provides a record, both positive and negative, of a given contract during a specific period of time. Each assessment is based on
A Contracting Officer’s Representative (COR) (FAR 106.4) is an individual authorized in writing by the Contracting Officer to perform specific technical or administrative contract functions. The COR must receive a written designation of their authority to act on behalf of the contracting officer. (DFARS Subsection 201.602-2). COR responsibilities include monitoring the contractor’s performance and performing
DoD Components, Officials and Program Offices can contract with private auditing services when non-Federal auditors are not available. They should follow requirements described in DFARS Subpart 237.2 – Advisory and Assistance Services (Reference (w)). Manual: DoD Manual 7600.01-M “DoD Audit Manual” 13 Feb 09 – Enclosure 14 Non-Federal auditors who perform work
A Contract Closeout occurs when a contract has met all the terms of a contract and all administrative actions have been completed, all disputes settled, and final payment has been made. This includes those administrative actions that are contractually required; i.e. property, security, patents, and royalties. Contract Closeout Procedures The procedures for contract closeout are
One of the most important issues to understand about contract law is how a contract is formed. Many agreements may be legally unenforceable or “void” because they lack one of the essential elements for a valid contract. The five essential elements are: Offer: An offer is a specific promise and a specific demand. For example:
The Clinger-Cohen Act (CCA) of 1996 is designed to improve how the federal government acquires, uses, and disposes of Information Technology (IT). It encompasses the (1) Information Technology Management Reform Act (ITMRA) (Division E) and the (2) Federal Acquisition Reform Act (FARA) (Division D), which were signed into law as part of the National
A Blanket Purchase Order (BPO) is a long-term agreement that includes a description of the items needed, unit price, and contractual provisions. Although a single blanket purchase order number is only set up one time, it can allow multiple releases against it at different times throughout a set time period. A “release” occurs each time
The Berry Amendment (USC, Title 10, Section 2533a), requires the Department of Defense (DoD) to give preference in procurement to domestically produced, manufactured, or homegrown products, most notably food, clothing, fabrics, and specialty metals. Congress originally passed domestic source restrictions as part of the Fifth Supplemental DoD Appropriations Act of 1941 in order to protect
Award Fee Contracts (FAR Part 16.4) are a type of Incentive Contract to incentivize the contractor to achieve cost efficiency. These can be a written contract or special incentives. These are appropriate when elements of performance cannot be objectively or quantitatively measured and areas of management interest or concern, which the Government wants to incentivize,
A Basic Ordering Agreement (BOA) (FAR 16.703) is a written instrument of understanding negotiated between an agency or contracting activity and a contractor. A BOA may be used to expedite contracting for uncertain supplies or services when specific items, quantities, and prices are not known at the time of agreement is executed, but a substantial
The Federal Acquisition Regulations (FAR) is the primary regulation for use by all Federal Executive agencies in their acquisition of supplies and services with appropriated funds. It became effective on April 1, 1984, and is issued within applicable laws under the joint authorities of the Administrator of General Services, the Secretary of Defense, and the
Phase 4 of the contracting process is Contract Award. This is where a contract is officially awarded to a contractor. Most of the responsibility in this phase lies with the Program Contracting Officer (PCO) and Contracts Officer’s Representative (COR). It is important that the Program Management Office (PMO) and Program Manager (PM) understand all of
Phase 3 of the contracting process is Evaluation. The objective is to evaluate all proposals received in response to a solicitation in a method consistent with the instructions and evaluation criteria in Section L & M of the Request for Proposal (RFP) package. The evaluation will identify the strengths, weaknesses, significant weaknesses, and deficiencies contained
Phase 2 of the contracting process is Solicitation. The objective of solicitation is to prepare and issue a solicitation to ensure that all qualified offerors are given the opportunity to compete for Government contracts. This phase of the contracting process includes preparing the solicitation; publicizing the planned procurement; amending the solicitation, as necessary; communicating with
Phase 1 of the contracting process is Planning for Procurement. Procurement Planning is identifying and describing requirements and determining the best method for meeting those requirements. Planning focuses on the business and technical management approaches to achieve program objectives within specified resource constraints and the procurement and contracting strategies necessary for implementation. Phase 1: Team
An Indefinite-Delivery Contract (IDC) (Federal Acquisition Regulation (FAR) Subpart 16.5) provides various possible combinations of indefinite elements that provide the desired flexibility to best meet the Government needs. The appropriate type of indefinite-delivery contract may be used to acquire supplies and/or services when the exact times and/or quantities of future deliveries are unknown at the
A Purchase Order (PO) (FAR Part 13.302) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by
