some methods of contracting require more time than others

You also have an on-premises Active Directory domain that contains a user named User1. Any competitive negotiated acquisition having a basis for award stating that factors in addition to cost/price will be considered in selecting the successful offeror (s) ), (b) Inclusion of an option is normally not in the Governments interest when, in the judgment of the contracting officer-, (1) The foreseeable requirements involve-, (i) Minimum economic quantities (i.e., quantities large enough to permit the recovery of startup costs and the production of the required supplies at a reasonable price); and. (d) Solicitations that allow the offer of options at unit prices which differ from the unit prices for the basic requirement shall state that offerors may offer varying prices for options, depending on the quantities actually ordered and the dates when ordered. The requirements, by item of supply or service, for the-, (1) While the contract was being developed, in 2016 and 2017, Canada passed a law legalizing medical assistance in dying. The wording crafted by Island Health and South Island, which they embedded in the preamble of their contract, can be used by other companies as a model for drafting their own guiding principles. Economic price adjustment clauses are adaptable to multi-year contracting needs. (a) The contracting officer shall insert the clause at 52.217-2, Cancellation Under Multi-year Contracts, in solicitations and contracts when a multi-year contract is contemplated. (f) Presolicitation or pre-bid conferences. (a) In awarding the basic contract, the contracting officer shall, except as provided in paragraph (b) of this section, evaluate offers for any option quantities or periods contained in a solicitation when it has been determined prior to soliciting offers that the Government is likely to exercise the options. In the first two years, Dell and FedEx were able to reduce costs by 42%, scrap by 67%, and defective parts per million to record-low levels. If the buyer refuses to adjust the suppliers fee or the statement of work, the supplier may try to recoup losses by, for example, replacing the expensive A team it currently has on the project with its less costly C team. If funds are not appropriated to support the succeeding years requirements, the agency must cancel the contract. For DoD, NASA, and the Coast Guard, the authorities cited in 17.101 do not apply to contracts for the purchase of supplies to which 40 U.S.C.759 applies (information resource management supply contracts). (d) The DoD acquisition official, as defined at 17.701, shall provide to the servicing nondefense agency contracting officer any DoD-unique terms, conditions, other related statutes, regulations, directives, and other applicable requirements for incorporation into the order or contract. In an era when businesses increasingly have to depend on their suppliers to lower costs, improve quality, and drive innovation, traditional contracts dont work. (d) (b) This subpart implements Pub. (c) The requesting and servicing agencies should agree to procedures for the resolution of disagreements that may arise under interagency acquisitions, including, in appropriate circumstances, the use of a third-party forum. They shall not include any costs of labor or materials, or other expenses (except as indicated above), which might be incurred for performance of subsequent program year requirements. (2) To perform this calculation, the contracting officer should obtain in-house engineering cost estimates identifying the detailed recurring and nonrecurring costs, and the effect of labor learning. (e) Which of the following is NOT, [Recognize how contract types impacts COR responsibilities], Cost reimbursement contracts require less monitoring by the COR than other. The indefinite-delivery contracts used most frequently to support interagency acquisitions are Federal Supply Schedules (FSS), Governmentwide acquisition contracts (GWACs), and multi-agency contracts (MACs). The highlighted questions are the questions you have missed. Crafting a formal relational contract involves five steps: laying the foundation, cocreating a shared vision and objectives, adopting guiding principles, aligning expectations and interests, and creating systems for staying aligned. (h) (5) Document roles and responsibilities in the administration of the contract. CON 091 Module 1 Flashcards | Quizlet Multi-year contract including the requirements for each program year. repairs. These result in a decrease in paperwork as well as less costs on both the government and contractor. (b) Multi-year contracting is a flexible contracting method applicable to a wide range of acquisitions. (a) This subpart prescribes policies and procedures applicable to all interagency acquisitions under any authority, except as provided for in paragraph (c) of this section. Payment of cancellation charges. And South Islands less-than-optimal reporting processes meant inevitable bickering over billable hours. (b) Type of contract. Under the new pricing model, when the inpatient population is low, the hospitalists can opt to take time off and save Island Health money. The extent to which cancellation terms are used in multi-year contracts will depend on the unique circumstances of each contract. A Fair Way to Lead a Team of Contractors and Full-Time Employees To keep expectations aligned in a complex and changing environment, both partiesnot just the one with greater powerneed to explain their vision and goals for the relationship. (a) Interagency acquisitions are commonly conducted through indefinite-delivery contracts, such as task- and delivery-order contracts. A.) To ensure that all interested sources of supply are thoroughly aware of how multi-year contracting is accomplished, use of presolicitation or pre-bid conferences may be advisable. A provision that, if the Government determines before award that only the first program year requirements are needed, the Governments evaluation of the price or estimated cost and fee shall consider only the firstyear. Using multiple suppliers instead of only one, for example, increases costs; so does operating a shadow organization. It would be against our fiduciary responsibility to our shareholders to invest in any program for a client with a 60-day termination clause that required longer than two months to generate a return. The implications for innovation are obvious. Cancellation means the cancellation (within a contractually specified time) of the total requirements of all remaining program years. These limitations do not apply to information technology contracts. Their efforts led to the vested methodology for creating formal relational contractsa process that establishes a whats in it for we partnership mentality. Economic price adjustment clauses. Level unit prices. In the event funds are not made available for the continuation of a multi-year contract awarded using the procedures in this section, the contract shall be canceled or terminated. Review and, Which three of the following statements about convenience checks are true? (c) Within 2 years of the effective date of this regulation, agencies shall review their current contractual arrangements in the light of the guidance of this subpart, in order to-, (1) Identify, modify as necessary, and authorize management and operating contracts; and. (2) A multi-year contract will serve the best interests of the United States by encouraging full and open competition or promoting economy in administration, performance, and operation of the agencys programs. (c) The inclusion of recurring costs in cancellation ceilings is an exception to normal contract financing arrangements and requires approval by the agency head. (d) A provision specifying a separate cancellation ceiling (on a percentage or dollar basis) and dates applicable to each program year subject to a cancellation (see 17.106-1(c) and (d)). In sealed bidding, the contracting officer shall change the ceiling by amending the solicitation before bid opening. How to build better long-term strategic partnerships. Written contracts that are legally enforceable (which is why we call them formal), they include many components of a traditional contract but also contain relationship-building elements such as a shared vision, guiding principles, and robust governance structures to keep the parties expectations and interests aligned. The contracting officer shall establish cancellation dates for each program years requirements regarding production lead time and the date by which funding for these requirements can reasonably be established. Competitive negotiated contract A streamlined method of acquisition refers to contracting methods aimed at making the acquisition process streamlined as well as procurement facilitating. Is the suppliers product or service a strategic differentiatorfor the buyer? 3903 and 10 U.S.C. Exam (elaborations) - Clc 222 mod 3 contract management exam 4. This subpart prescribes policies and procedures specific to acquisitions of supplies and services by nondefense agencies on behalf of the Department of Defense (DoD). They shall not include any costs of labor or materials, or other expenses (except as indicated above), which might be incurred for performance of subsequent program year requirements. (d) An agency shall not use an interagency acquisition to make acquisitions conflicting with any other agencys authority or responsibility (for example, that of the Administrator of General Services under title 40, United States Code, "Public Buildings, Property and Works" and 41 U.S.C. It is key to the buyer and seller relationship and provides a framework to deal with each other. Nonrecurring costs include such costs, where applicable, as plant or equipment relocation or rearrangement, special tooling and special test equipment, preproduction engineering, initial rework, initial spoilage, pilot runs, allocable portions of the costs of facilities to be acquired or established for the conduct of the work, costs incurred for the assembly, training, and transportation to and from the job site of a specialized work force, and unrealized labor learning. (2) If approved by the servicing agency, payment for actual costs may be made by the requesting agency after the supplies or services have been furnished. This subpart implements 41 U.S.C. However, this does not preclude the use of an indefinite quantity contract or requirements contract with options. Presolicitation or pre-bid conferences. If cancellation occurs, the Governments liability will be determined by the terms of the applicable contract. 2) What is a KEY role of the COR in Acquisition Planning? The FAR applies when one agency uses another agencys contract to obtain supplies or services. (c) An interagency acquisition is not exempt from the requirements of subpart 7.3, Contractor Versus Government Performance. Some relationships, such as those involving the purchase of commodity products and services, are truly transactional and only need traditional contracts. 3) There are two basic contract types, cost reimbursement and fixed-price. To the extent practicable, multi-year contracting shall not be carried out in a manner to preclude or curtail the existing ability of the Department or agency to provide for termination of a prime contract, the performance of which is deficient with respect to cost, quality, or schedule. (d) Achieve economies in production. The contracting officer shall insert the amount for the first program year in the contract upon award and modify it for successive program years upon availability of funds. Relational contracts that rely on parties making choices in their mutual self-interest are nothing new, of course. In two-step sealed bidding, discussions conducted during the first step may indicate the need for revised ceilings and dates which may be incorporated in step two. 501 for the Federal Supply Schedules (subpart 8.4), and 40 U.S.C. L. 110-181, section 801, as amended ( 10 U.S.C. (b) Business-case analysis requirements for multi-agency contracts and governmentwide acquisition contracts. In a negotiated acquisition, negotiations with offerors may provide information requiring a change in cancellation ceilings and dates before final negotiation and contract award. An example of a circumstance that may support a determination not to evaluate offers for option quantities is when there is a reasonable certainty that funds will be unavailable to permit exercise of the option. (h) Include the value of options in determining if the acquisition will exceed the World Trade Organization Government Procurement Agreement or Free Trade Agreement thresholds. The cancellation percentages, after deducting 3 percent for the first program year, would be 7, 4, 2, and 1 percent of the total price applicable to the second, third, fourth, and fifth program years, respectively. Consider how the Island Health administrators and South Island hospitalists tackled pricing, which had always been their sticking point. in the overall strategic planning of an acquisition]. They agonize over every conceivable scenario and then try to put everything in black-and-white. The parties ultimately came up with an alternative to the standard fee-for-billable-hours method. Therefore, when reviewing contractor performance, contracting officers should consider-. The primary goal of Step 1 is to establish a partnership mentality. (David and Kate have consulted on many of these projects, including several mentioned in this article.) (1) A contract is a binding agreement between a buyer and a seller. Course Hero is not sponsored or endorsed by any college or university. Each individual worked with a counterpart from the other organization to establish connections in key areas. At Island Health and South Island, the parties tossed out the old contract and chartered a team of 12 administrators and 12 hospitalists to design a formal relational contract. (f) The Governments administrative costs of annual contracting may be used as a factor in the evaluation only if they can be reasonably established and are stated in the solicitation. If a third party is proposed, consent of the third party should be obtained in writing. Contracts awarded under the multi-year procedure shall be firm-fixed-price, fixed-price with economic price adjustment, or fixed-price incentive. After all, the team realized, who better to optimize the scheduling for superior patient care than the doctors on the front lines? 3501 and provides policy and procedures for the use of multi-year contracting. (c) Cancellation procedures. Accordingly, for multi-year contracts, the agency head may authorize modification of the requirements of this subpart and the clause at 52.217-2, Cancellation Under Multi-year Contracts. (1) Functions involving the direction, supervision, or control of Government personnel, except for supervision incidental to training; (2) Functions involving the exercise of police or regulatory powers in the name of the Government, other than guard or plant protection services; (3) Functions of determining basic Government policies; (4) Day-to-day staff or management functions of the agency or of any of its elements; or. (2) The requesting agency shall also be responsible for furnishing other assistance that may be necessary, such as providing information or special contract terms needed to comply with any condition or limitation applicable to the funds of the requesting agency. However, these tactics not only confer a false sense of security (because both firms switching costs are too high to actually invoke the clauses) but also foster negative behaviors that undermine the relationship and the contract itself. (3) Because private enterprise is unable or unwilling to use its own facilities for the work. In the event there are no agency unique requirements beyond the FAR, the requesting agency shall so inform the servicing agency contracting officer in writing. In determining cancellation ceilings, the contracting officer must estimate reasonable preproduction or startup, labor learning, and other nonrecurring costs to be incurred by an "average" prime contractor or subcontractor, which would be applicable to, and which normally would be amortized over, the items or services to be furnished under the multi-year requirements. [Identify the various methods of contracting for a supply or service] [Remediation Accessed :N] Competitive Negotiated contract Ordering off a Blanket Purchase Agreement Simplified Acquisition Procedures Fixed-price contracts, also known as firm-price or lump-sum contracts, are agreements in which the two parties state the goods or services one party will provide and establish the price the other party will pay for them. (b) Economic price adjustment clauses. 3903 and In preparing interagency agreements to support assisted acquisitions, agencies should review the Office of Federal Procurement Policy (OFPP) guidance, Interagency Acquisitions, available at https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/assets/OMB/procurement/interagency_acq/iac_revised.pdf . PDF Text File Part 2 How the Government Buys - Small Business Administration (3) Follower company, obligating it to subcontract with a designated leader company for the required assistance. They designed a hybrid pricing model with a combination of fixed and variable rates, coupled with incentives to improve efficiencies. Nondefense agency contracting officers are responsible for ensuring support provided in response to DoDs request complies with paragraph (b) of this section. (b) Because of the nature of the work, or because it is to be performed in Government facilities, the Government must maintain a special, close relationship with the contractor and the contractors personnel in various important areas (e.g., safety, security, cost control, site conditions). may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on appropriations of the House of Representatives and Senate and the appropriate oversight committees of the House and Senate for the agency in question. (e) Ensure uniformity and reliability in equipment, compatibility or standardization of components, and interchangeability of parts. (b) Benefits may accrue by including options in a multi-year contract. The inclusion of recurring costs in cancellation ceilings is an exception to normal contract financing arrangements and requires approval by the agency head. Subpart 17.4 - Leader Company Contracting, Subpart 17.6 - Management and Operating Contracts. The remedy is to adopt a totally different kind of arrangement: a formal relational contract that creates a flexible framework designed to foster collaboration in complex strategic relationships over the long term.

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