Advertising Ch 14
Julia’s is using a ________________ pricing technique. The clause at 52.216-25, Contract Definitization, with its paragraph accomplished in a manner consistent with sixteen.603-2. If the letter contract is being awarded on the basis of worth competition, the contracting officer shall use the clause with its Alternate I. A time-and-supplies contract offers no optimistic profit incentive to the contractor for price management or labor efficiency. Therefore, applicable Government surveillance of contractor efficiency is required to give cheap assurance that environment friendly methods and effective price controls are getting used. Individual orders shall clearly describe all services to be performed or supplies to be delivered so the total price or price for the performance of the work can be established when the order is placed.
If the contract is for nonpersonal companies and associated supplies and covers estimated requirements that exceed a particular Government activity’s inside functionality to provide or carry out, use the clause with its Alternate I. Except as provided for in paragraphs and of this section, the ordering period of a task-order contract for advisory and help services, together with all options or modifications, normally may not exceed 5 years. If the contract didn’t establish the value for the provision or service, the contracting officer should establish costs for every order using the insurance policies and methods in subpart 15.4.
406 Contract Clauses
The head of the agency shall designate a task-order and supply-order ombudsman. The ombudsman must evaluate complaints from contractors and guarantee they are afforded a good alternative to be thought of, according to the procedures in the contract. The ombudsman should be a senior agency official who’s independent of the contracting officer and may be the agency’s advocate for competition. Except for DoD, the contracting officer shall doc within the contract file a justification for use of the bottom value technically acceptable supply choice course of, when relevant.
Calculate The Price
In these conditions it is appropriate for a firm to use the penetration strategy to realize shopper attention. Price changes based on established costs ought to usually be restricted to business-broad contingencies. Price changes based mostly on labor and material costs should be limited to contingencies past the contractor’s control.
A model-name item, even if out there on a couple of contract, is an merchandise peculiar to 1 manufacturer. Limitations on use of necessities contracts for advisory and help companies. Requirements contracts could allow quicker deliveries when production lead time is involved, as a result of contractors are often willing to maintain restricted stocks when the Government will obtain all of its actual purchase necessities from the contractor. The contract could include technical efficiency incentives when it is highly probable that the required improvement of a significant system is feasible and the Government has established its efficiency objectives, no less than in general terms. This approach also might apply to other acquisitions, if the use of each cost and technical efficiency incentives is desirable and administratively practical.
In the course of an acquisition program, a collection of contracts, or a single long-term contract, altering circumstances might make a different contract kind appropriate in later durations than that used on the outset. In particular, contracting officers should keep away from protracted use of a price-reimbursement or time-and-supplies contract after expertise provides a foundation for firmer pricing. A firm-mounted-worth contract, which finest makes use of the essential profit motive of enterprise enterprise, shall be used when the chance concerned is minimal or can be predicted with an appropriate degree of certainty.