Which of the following Is Defined as a Contract That Prescribes the Technical Support or Business
(a) products for which unit prices are fixed in the contract; or 46,408 single-agency contracts for quality assurance of government contracts. (1) Unless there is a special situation, the Government shall review orders at the place of destination or below the simplified acquisition threshold and only on the basis of type and manner; quantity; damage; Operability (if easily identifiable); and preservation, packaging, packaging and labelling, where applicable. 16.403-1 Fixed price incentive contracts (fixed target). (a) Description. A fixed-price incentive contract (fixed target) specifies a cost target, a target profit, a price cap (but not a profit cap or floor), and a profit adjustment formula. These elements are all negotiated at the beginning. The price cap is the maximum amount that can be paid to the contractor, with the exception of adjustments based on other contractual clauses. When the contractor completes the service, the parties negotiate the final costs and the final price is determined by applying the formula. If the final cost is less than the target cost, the application of the formula gives a final gain greater than the target gain; Conversely, if the final cost is higher than the target cost, the application of the formula results in a final gain below the target gain, or even a net loss.
If the negotiated final costs exceed the price cap, the contractor will consider the difference as a loss. Since profit varies inversely with costs, this type of contract provides a positive and calculable incentive for profit for the entrepreneur to control costs. (b) enforcement. A fixed-price incentive contract (fixed objective) is appropriate if the parties can negotiate from the outset a formula for fixed target costs, target profits and profit adjustments that provide a fair and reasonable incentive and cap that allows the contractor to assume a reasonable share of the risk. If the contractor assumes a significant or significant portion of the cost responsibility under the adjustment formula, the target profit should reflect that responsibility. (c) restrictions. This type of contract can only be used if: (1) the contractor`s accounting system is able to provide data to support the negotiation of the final revision of costs and incentive prices; and (2) Reasonable information on costs or prices for the establishment of reasonable fixed targets must be available at the time of the initial contract negotiations. (d) Contractual plan. The contracting entity shall indicate in the market plan the target costs, the target profit and the target price for each item, subject to a review of the incentive price. 16.403-2 Fixed-price incentive contracts (successive objectives).
(a) Description. 1. A fixed-price incentive contract (successive objectives) shall specify the following elements, all of which are negotiated at the beginning: (i) initial target costs. (ii) An initial target gain. (iii) An initial profit adjustment formula to be used to determine the fixed target profit, including an upper limit and a lower limit for the fixed target profit. (This formula generally provides for a lower level of cost responsibility than the contractor than a formula for determining final profit and final price.) (iv) The point of production at which the fixed target cost and profit are negotiated (usually before delivery or completion of the first item). (v) a maximum price equal to the maximum amount that may be paid to the contractor, with the exception of adjustments resulting from other contractual terms which provide for an appropriate adjustment or other change in the market price in certain circumstances. 2. When the point of production specified in the contract is reached, the parties shall negotiate the fixed target costs, taking into account the cost experience of the contract and other relevant factors.
The fixed target profit is determined by the formula. At this point, the parties have two alternatives: (i) you can negotiate a fixed fixed price, using the fixed target cost plus the fixed target profit as a guideline. (ii) Where the negotiation of a fixed price is not appropriate, they may negotiate a formula to determine the final price using the fixed target costs and the fixed target profit; The final costs are then negotiated at closing, and the final profit is determined by the formula, as under the fixed price incentive agreement (fixed target) (see 16 403-1 above). (b) enforcement. A fixed-price incentive contract (successive targets) is appropriate if: (1) there is insufficient information available on costs or prices to allow the negotiation of a realistic binding cost-benefit target prior to award; 2. Sufficient information shall be available to enable the initial objectives to be negotiated. and (3) There is reasonable assurance that reliable additional information will be available at an early stage of execution to negotiate (i) a fixed fixed price or (ii) fixed targets and formula to determine the final profit and price that provide a fair and reasonable incentive. This additional information is not limited to the experience gained in the contract itself, but may come from other contracts dealing with the same or similar elements.
(c) restrictions. This type of contract can only be used if- (1) The contractor`s accounting system is sufficient to provide data for the negotiation of the company`s objectives and a realistic formula for adjusting profits, as well as subsequent negotiations on final costs. and (2) information about costs or prices that is reasonable to set a reasonable fixed cost target is reasonably available at an early stage of the performance of the contract. (d) Contractual plan. The contracting entity shall indicate in the contract schedule the initial target costs, the initial target profit and the initial target price for each item subject to an incentive price review. (i) No protest under subsection 33.1 shall be admissible in connection with the award or intended placement of an order under a contract or supply contract unless: (b) a fixed-price contract that makes the best use of the Company`s fundamental profit motive is used if the risk associated with it is minimal or can be predicted with a level of acceptable certainty. However, where there is no adequate basis for setting prices, other types of contracts should be considered and negotiations should focus on the choice of a type of contract (or a combination of types) that appropriately links profit to the contractor`s performance. (i) the award of a follow-up contract is delayed by circumstances which could not reasonably have been foreseen at the time of the conclusion of the initial contract; and (a) quality assurance of public contracts that may be performed at the place of destination is generally limited to the inspection of supplies or services. The inspection must be carried out at the place of destination in the following circumstances: (3) The clause of 52.216-25, definition of the contract, with its paragraph (b) is supplemented in accordance with 16.603-2 (c). If, at the time of the conclusion of the contract letter, the principal knows that the final contract is based on reasonable price competition or otherwise meets the criteria of 15 403-1 in order not to require the submission of certified cost or price data, the words “and cost or price data certified in accordance with FAR 15.408, Table 15-2 in support of your proposal` may be deleted from point (a) of the clause. If the order letter is awarded on the basis of a price competition, the contracting authority shall use the clause with its deputy I. (2) A written procurement plan has been approved and signed at least one level above the contracting authority; (a) the contracting authority shall include in each contract letter the conditions required by this Regulation for the type of final contract envisaged and any additional conditions known to be suitable for it; (iii) supplements for the set-aside portion of sealed partial supply payments for small enterprises.
(1) tests requiring the use of special equipment or testing facilities that are not normally available at suppliers` facilities or commercial laboratories (e.g.B. ballistic testing of ammunition, unusual environmental testing and simulated service testing); and (c) The two basic categories of incentive contracts are fixed-price incentive contracts (see 16,403 and 16,404) and repayment incentive contracts (see 16,405). Since it is usually to the government`s advantage that the contractor assumes significant cost responsibility and a reasonable share of the cost risk, fixed-price incentive contracts are preferable if the contractual costs and performance requirements are sufficiently certain. Refund incentive contracts are subject to the general restrictions set out in section 16 301 that apply to all refund contracts. (8) Mediator for orders for contracts and supplies. The Head of the Agency shall appoint a mediator for supply contracts and contracts. The Ombudsman must examine the contractors` complaints and ensure that they have a fair opportunity to examine them in accordance with the procedures laid down in the Treaty. The Ombudsman must be a senior official of the Agency, independent of the contracting entity and who may be the Agency`s competition lawyer. (4) Contracting entities shall carefully examine all justifications for proprietary data and delete all such data and references and quotations necessary for the protection of protected data before making the justifications available to the public. Contract agents are also guided by the exceptions to information disclosure contained in the Freedom of Information Act (5 U.S.C.552) and the disclosure prohibitions in 24.202 when deciding whether other data should be deleted. Although the procedure for notification of the bidder set out in Presidential Decree 12600 “Procedures for Notification Prior to Disclosure of Confidential Business Information” is not applicable, if the justification appears to contain proprietary data, the customer must give the contractor who submitted the information the opportunity to verify the justification of the protected data before making the justification available to the public.
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