AIR FORCE FAR SUPPLEMENT

PART 5316 — Types of Contracts

PART 5316 -
Types of Contracts



Table of Contents

5316.102 Policies

5316.103 Negotiating Contract Type

5316.104 Factors in Selecting Contract Types

SUBPART 5316.203 — FIXED-PRICE CONTRACTS WITH ECONOMIC PRICE ADJUSTMENT

5316.203-4 Contract Clauses

SUBPART 5316.206 — FIXED-CEILING-PRICE CONTRACTS WITH RETROACTIVE PRICE REDETERMINATION

5316.206-3 Limitations

SUBPART 5316.3 — COST-REIMBURSEMENT CONTRACTS

5316.301-3 Limitations

SUBPART 5316.4 — INCENTIVE CONTRACTS

5316.401 General

5316.404 Fixed-Price Contracts with Award Fees

5316.405-2 Cost-Plus-Award-Fee Contracts

SUBPART 5316.5 — INDEFINITE-DELIVERY CONTRACTS

5316.503 Requirements Contracts

5316.504 Indefinite-Quantity Contracts

5316.505 Ordering

5316.505-90 Decentralized Ordering

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

5316.601(d) Limitations

5316.603-2 Application

5316.603-3 Limitations





[2019Edition]

INTERIM CHANGES: SeeCPM19-C-11, CPM19-C-12, CPM20-C-09, CPM20-C-10, and CPM20-C-19

See AF PGI 5316.101.

5316.102 Policies

See MP5301.601(a)(i)for approval of cost-reimbursement contracts required pursuant toDFARSClass Deviation 2019-O0001 — Use of Fixed-Price Contracts.
INTERIMCHANGE: See CPM19-C-12.

5316.103 NegotiatingContract Type

(d) See thetailorable Determinationand Findings template.

5316.104 Factors inSelecting Contract Types

See AF PGI 5316.104.

SUBPART 5316.203 —FIXED-PRICE CONTRACTS WITH ECONOMIC PRICE ADJUSTMENT

5316.203-4 ContractClauses

See AF PGI 5316.203-4.

SUBPART 5316.206 —FIXED-CEILING-PRICE CONTRACTS WITH RETROACTIVE PRICE REDETERMINATION

5316.206-3 Limitations

(d) Submitrequests through the SCO to SAF/AQCfor HCA approval (See MP5301.601(a)(i)).

SUBPART 5316.3 —COST-REIMBURSEMENT CONTRACTS

5316.301-3 Limitations

(2) INTERIM CHANGE: See CPM19-C-12.

SUBPART 5316.4 —INCENTIVE CONTRACTS

5316.401 General

(d) SeeMP5301.601(a)(i) forapproving incentive and award fee contract D&Fs. Forward a copyof the D&F to SAF/AQCwhen the conditions at DFARS PGI 216.401(e)(iv) apply.

INTERIMCHANGE: See CPM19-C-12.

(e)(3)(i) SeeMP5301.601(a)(i).

See AF PGI 5316.401-90.

See SMC PGI 5316.401-90.

5316.404 Fixed-PriceContracts with Award Fees

See 5316.401(e)(3)(i) above.

5316.405-2 Cost-Plus-Award-Fee Contracts

(1) Award-fee pool. Submit requests through the SCO to SAF/AQCfor HCA approval (see MP5301.601(a)(i)).

See SMC PGI 5316.405-2-90.

SUBPART 5316.5 — INDEFINITE-DELIVERY CONTRACTS

5316.503 Requirements Contracts

(b)(2)Determinations for requirements contracts in an amount estimated toexceed $112M (including all options) must be approved in accordancewith 5316.504(c)(1)(ii)(D).

5316.504 Indefinite-Quantity Contracts

(a) Description.

(2) Upon execution of the contract, an obligation shall be recordedbased upon the issuance of a delivery or task order for thecost/price of the minimum quantity specified. The Government’sactual obligation must be recorded at the time of contract award.(See DoD7000.14-R , Volume 3, Chapter8, paragraph 080604)

(c)(1)(ii)(D)Limitation on single award contracts.
INTERIMCHANGE: See CPM20-C-19.

(c)(2)(i)(A) INTERIM CHANGE: SeeCPM19-C-11.

(c)(2)(i)(B) INTERIM CHANGE: SeeCPM19-C-11.

(c)(2)(ii) INTERIM CHANGE: SeeCPM19-C-11.



(1) The SCO hasthe authority to make the written determination required by FAR16.504(c)(1)(ii)(D)(1). When a J&A is required, a separatewritten determination is not required if the J&A addresses one ofthe circumstances at FAR 16.504(c)(1)(ii)(D)(1)(i)-(iv). Provide acopy of the written determination to SAF/AQCP.

5316.505 Ordering

(b) Ordersunder multiple award contracts.

(1) Fair opportunity.

(ii) The contracting officer must use streamlined orderingprocedures. SCOs must justify the use of FAR Subpart 15.3 SourceSelection Procedures for any contract or task/delivery order,regardless of dollar value made in accordance with FAR 16.505. TheSCO must submit justifications to SAF/AQCbefore proceeding with the source selection and/or Clearance session.

(2) Exceptions to the fair opportunity process. See5306.304(a) for the approving officials for a proposedtask or delivery order using the fair opportunity exceptions at FAR16.505(b)(2). See the tailorable Justificationfor an Exception to Fair Opportunity template. For exceptions tofair opportunity that are intended for purposes of awarding a “BridgeAction” see 5306.303-90.

See AF PGI 5316.505.

See SMC PGI 5316.505.

(8) Task-order and delivery-order ombudsman. See 5301.91.

5316.505-90 Decentralized Ordering

For contracts that authorize decentralizedordering (i.e., ordering by a contracting office at any otherlocation), the contracting officer with overall responsibility forthe contract must:

(a) Ensure thatadequate control procedures are in place before any orders areauthorized; and

(b) Exerciseoversight of decentralized ordering throughout the period ofperformance under the contract to ensure that the procedures arefollowed.

See SMC PGI 5316.505-90.

See AF PGI 5316.506.

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

5316.601(d) Limitations

INTERIM CHANGES: SeeCPM20-C-09 and CPM20-C-10.

(i)(A)(2) Submit the D&F required pursuant to DFARS216.601(d)(i)(A)(2) through the SCO to SAF/AQCfor approval. See MP5301.601(a)(i).

(3) See MP5301.601(a)(i).

5316.603-2 Application

(c)(3) SeeMP5301.601(a)(i).

5316.603-3 Limitations

See MP5301.601(a)(i).

2019 Edition 5316- 4