PART 916-TYPES OF CONTRACTS
Subpart 916.2-Fixed-Price Contracts
Sec.
916.203 Fixed-price contracts with economic price adjustments.
916.203-4 Contract clauses.
916.207-3 Limitations.
Subpart 916.3-Cost-Reimbursement Contracts
916.306 Cost-plus-fixed-fee contracts.
916.307 Contract clauses.
Subpart 916.4-Incentive Contracts
916.404-2 Cost-plus-award-fee contracts.
Authority: 42 U.S.C. 7254; 40 U.S.C. 486(c).
Source: 49 FR 11972, Mar. 28, 1984, unless otherwise noted.
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Subpart 916.2-Fixed-Price Contracts
916.203 Fixed-price contracts with economic price adjustments.
916.203-4 Contract clauses.
(d)(2) The Head of the Contracting Activity, or designee, for contracts estimated to be within the limits of their delegated authority, may approve the use of an economic price adjustment clause when appropriate in accordance with FAR 16.203-4.
Subpart 916.3-Cost-Reimbursement Contracts
916.306 Cost-plus-fixed-fee contracts.
(c)(2) The Head of the Contracting Activity, or designee, for contracts estimated to be within their delegated authority, may approve (sign) the determination and findings establishing the basis for application of the statutory price or fee limitations.
916.307 Contract clauses.
(j) The contracting officer shall insert the clause at FAR 52.216-15, Predetermined Indirect Cost Rates, modified
as specified in 952.216-15 in solicitations and contracts when a cost-reimbursement research and development contract with a State or local government is contemplated and predetermined indirect cost rates are to be used.
Subpart 916.4-Incentive Contracts
916.404-2 Cost-plus-award-fee contracts.
(d) Fee Determination Plans. Award fee arrangements limited to technical performance considerations are prohibited because they may increase cost disproportionately to any benefits gained. Instead, the award fee arrangement shall include both technical performance (including scheduling as appropriate) and business management considerations tailored to the needs of the particular situation. In addition, in a situation where cost estimating reliability and other factors are such that the negotiation of a separate predetermined incentive sharing arrangement applicable to cost performance is determined both feasible and advantageous, cost incentives may be added. The resulting contract would then be identified as a cost-plus-incentive-fee/award-fee combination type. The goals and evaluation criteria should be results-oriented. The award fee should be concentrated on the end product of the contract, that is, output, be it hardware, research and development, demonstration or services, together with business management considerations. However, input criteria such as equal employment opportunity, small business programs, functional management areas, such as safety, security, etc., should not be disregarded and may be appropriate criteria upon which to base some part of the award fee. Specific goals or objectives shall be established in relation to each performance evaluation criterion against which contractor performance is measured.