Sealed bidding
(1) Time permits the solicitation, submission, and evaluation of sealed bids;(2) The award will be made on the basis of price and other price-related factors;(3) It is not necessary to conduct discussions with the responding offerors about their bids; and(4) There is a reasonable expectation of receiving more than one sealed bid.
Contracting by Negotiation
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Broad agency announcement w/ peer/scientifice review
a. other competitive proceduresb. The primary basis for selecting proposals for acceptance shall be technical, importance to agency programs, and fund availability
architect engineer contracting
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What are the competitive procedures available for use in fulfilling the requirement for full and open competition?
1. sealed bids2. cometitive proposals3. combinatino of competitive procedures4. other competitive procedures
competitive proposals
Competitive proposals will therefore be used for these contracts unless discussions are not required and the use of sealed bids is otherwise appropriate.
Tradeoff Process
has multiple evaluation factors
Lowest Price Technically Acceptable
evaluation is on lowest price
2 steps in two-step bidding
1. request, submission, evaluation and (if necessary) discussion 2. submission of sealed priced bids
6 different contracting methods
1. sealed bidding2. contracting by negotiation 3. SAT4. Broad agemcy announcement w/...5. two-ste[ bidding6. Architect Engineer contracting
2 broad catergories of contract types
1. Fixed price contracts2. cost-reimbursement contracts
types of fixed price contracts
1. Fixed price contract with economic price adjustment2. Fixed Price Incentive Contracts3. Fixed Ceiling Price with retroactive price redetermination 4. Firm fixed price, level-of-effort term contracts
type of cost-reimbursement contracts
1. Cost contracts 2. Cost-sharing contracts 3. Cost-plus-incentive-fee contract 4. Cost-plus-award-fee contracts 5. Cost-plus-fixed-fee contracts
According to the FAR, contract types vary according to what two factors?
(1) The degree and timing of the responsibility assumed by the contractor for the costs of performance; and(2) The amount and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals.
range of possible comtract types
Firm-Fixed Price (FFP) contractor has full responsibility for the performance costs and resulting profit (or loss).Cost-plus-fixed-fee contractor has minimal responsibility for performance costs and the negotiated fee (profit) is fixed.
in between...
various incentive contracts
What are the general characteristics of fixed-price contracts?
Fixed-price types of contracts provide for a firm price or, in appropriate cases, an adjustable price. Fixed-price contracts providing for an adjustable price may include a ceiling price, a target price (including target cost), or both. Unless otherwise specified in the contract, the ceiling price or target price is subject to adjustment only by operation of contract clauses providing for equitable adjustment or other revision of the contract price under stated circumstances. The contracting officer shall use firm-fixed-price or fixed-price with economic price adjustment contracts when acquiring commercial items, except as provided in 12.207(b).
. What are the general characteristics of cost-reimbursement contracts? Under what conditions may they be used? What are the limitations on their use?
Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the contracting officer.
When is the use of an incentive contract appropriate? What are incentive contracts designed to do?
Incentive contracts as described in this subpart are appropriate when a firm-fixed-price contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery or technical performance, by relating the amount of profit or fee payable under the contract to the contractor's performance. Incentive contracts are designed to obtain specific acquisition objectives by--(1) Establishing reasonable and attainable targets that are clearly communicated to the contractor; and(2) Including appropriate incentive arrangements designed to --(i) motivate contractor efforts that might not otherwise be emphasized and(ii) discourage contractor inefficiency and waste.