What Is a Fixed Price Labor Hour Contract

(9) Section 1427(b) of Public Law 108-136 (40 U.S.C. 1103 note) requires that contracts entered into under multi-agency contracts for services that essentially or to a dominant extent provide for the provision of engineering services within the meaning of Section 2.101(3) the transfer between divisions, subsidiaries or affiliates of the Contractor under common control. (B) services for which prices are fixed in the contract for the specific tasks to be performed; 16.501-1 Definitions. Used in this subsection — Supply Order Contract means a delivery contract that does not purchase or stipulate a fixed quantity of deliveries (other than a minimum or maximum quantity) and provides for the placing of orders for the delivery of deliveries during the term of the contract. Task Order Contract means a service contract that does not purchase or stipulate a fixed amount of services (other than a minimum or maximum quantity) and provides for the placing of orders for the performance of tasks during the term of the contract. 16.501-2 General. (a) There are three types of contracts with indefinite deliveries: volume contracts, demand contracts and quantity contracts of indefinite duration. For the purchase of deliveries and/or services, the corresponding type of supply contract may be used if the exact times and/or quantities of future deliveries are not known at the time the order is placed. Pursuant to 10 U.S.C. 2304d, and 41 U.S.C. 4101, demand contracts and volume contracts are also referred to as supply order contracts or contract contracts. (b) The different types of open-ended supply contracts offer the following advantages: (1) All three types allow (i) public stocks to be kept to a minimum; and (ii) direct shipping to Users. (2) Contracts of indefinite duration and on-demand contracts also allow (i) flexibility in both the planning of quantities and delivery; and (ii) order deliveries or services from the beginning of the request.

(3) Contracts for indeterminate quantities shall limit the Government`s obligation to the minimum quantity set out in the contract. (4) On-demand contracts may allow for faster deliveries when production time is affected, as contractors are generally willing to maintain limited inventory when the government receives all of its actual procurement requirements from the contractor. (c) Delivery contracts of indefinite duration may provide for a reasonable cost or price agreement in accordance with Part 16. Cost or price agreements providing for an estimated quantity of supplies or services (e.g.B. estimated number of hours of work) shall comply with the relevant procedures of this Subsection. (i) The successful tenderer shall offer each successful tenderer a fair chance of being considered for any order of more than USD 3,500 placed in contracts involving more than one supply contract or multiple contracts, with the exception of (b) the application. A basic contract may be used to expedite the award of contracts for undetermined supply or service needs where certain items, quantities and prices are not known at the time of performance of the contract, but a significant number of requirements relating to the nature of the supplies or services covered by the contract are likely to be obtained from the contractor. Under the right circumstances, using these procedures can result in savings when ordering parts for equipment support by reducing management times, inventory investments, and inventory obsolescence due to design changes. (D) where the award is based on best value, a written statement documenting the basis for the award and the relative importance of the quality and price or cost factors; and (D) a review of the measures envisaged to minimize the use of non-fixed-price contracts in future purchases for the same needs and to move to fixed-price contracts to the extent possible. (4) On-demand contracts may allow for faster deliveries when production time is affected, as contractors are generally willing to maintain limited inventory when the government receives all of its actual procurement requirements from the contractor.

Time and Material Contract: This type is used when there are no labor costs associated with the contract, such as travel, materials, and equipment use. As a general rule, travel, material and other direct costs (ODC) are reimbursed at the actual cost. The government`s obligation here is to pay for hours delivered and accepted according to an appropriate service description. (i) No objection under paragraph 33.1 shall be admissible with respect to the award or intended performance of a contract under a procurement or supply contract, except — (2) the amount of the surcharge. The amount of the surcharge levied shall be proportional to the total cost, schedule and technical performance of the contractor, measured against the requirements of the contract in accordance with the criteria set out in the procurement cost plan. Additional costs will not be earned if the contractor`s overall total cost, schedule and technical performance are below satisfactory levels. The basis for all surcharge findings should be documented in the contract file to determine at least whether the overall cost, schedule and technical performance are satisfactory or not. This determination and the method of determining the surtax are unilateral decisions made at the sole discretion of the Government. Fixed-price completion contract: The contractor`s obligation is simply to deliver the goods or services. The government`s obligation is to pay on delivery, pay immediately, ensure acceptance of the inspection and present an invoice. Once these things are accomplished, the government must pay the agreed price. This type of contract is most fixed-price contracts.

(e) See subsection 19.5 for procedures for the decommissioning of parts or parts of multiple supply contracts for small enterprises; reserve one or more small business premiums for multiple orders; and contracts for small businesses under multiple contracts. (ii) The likelihood that procurement objectives will be met is increased by the use of a contract that effectively motivates the contractor to perform exceptionally and gives the government the flexibility to assess both actual performance and the conditions under which it was achieved. and (A) an analysis of the reasons why the use of a contract other than a fixed-price contract (e.B. reimbursement, time and equipment, hours of work) is appropriate; (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.) Time and material contracts: This type of contract is used when the requirements are poorly described and we do not know exactly what we want, when or where we want it. These are usually services; The cost of performance can be predicted with a reasonable level of certainty in terms of cost per hour. .