Good morning FUN with the FAR Friends!
Thank you for joining us for another great episode of FUN with the FAR!
As a follow-up to Wednesday’s session, here are a few facts to ponder as we prepare for our next session of Fun with the FAR:
DID YOU KNOW?
Contract types are grouped into two broad categories: fixed-price and cost-reimbursement contracts. The selection of contract type must take into account risk allocation, and should be tailored to the uncertainties involved in contract performance. FAR 16.101(b).
DID YOU KNOW?
In a fixed-price contract, the contract is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract. FAR 16.202-1. This places most of the financial and performance risk on the contractor.
DID YOU KNOW?
An indefinite delivery/indefinite quantity (“ID/IQ”) contract may be used when the Government cannot predetermine, above a specified minimum, the precise quantities of supplies or services it will require during the contract period, and it is inadvisable for the Government to commit for more than a minimum quantity. It should be used only when a recurring need is anticipated. FAR 16.504(b).
DID YOU KNOW?
With both time-and-materials contracts and labor-hour contracts, the contractor is only required to use “best efforts” during contract performance and there is no guarantee that the work required will be completed within the contract’s stated “ceiling price.” FAR 52.232-7(d).
DID YOU KNOW?
Contract types that are not described in the FAR shall not be used, except as a FAR subpart 1.4 deviation. FAR 16.102(b).
Included here is the link to our Fun with the FAR program: