Thank you for joining us for our 11th episode of Season 11! Steve Daoust was our host and Jayna Rust was our guest speaker for this session, and they covered FAR 16 for our eleventh episode of 2024!
FAR Part 16 (Types of Contracts)
As a follow-up to Wednesday’s session, here are a few facts to ponder:
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?
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).
DID YOU KNOW?
A fixed-price with economic price adjustments contract provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies. FAR 16.203-1(a). This contract type may only be used if there is a “serious doubt concerning the stability of market or labor conditions that will exist during an extended period of contract performance” AND “contingencies that would otherwise be included in the contract price can be identified and covered separately in the contract.” FAR 16.203-2.
DID YOU KNOW?
The use of cost reimbursement contracts is prohibited for the acquisition of commercial products and commercial services. FAR 16.301-3(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?
ID/IQ contracts are required to contain a “minimum guarantee” and “maximum quantity” clause. FAR 16.504(a)(1).