(i) The Contractor shall give each successful bidder a fair opportunity to be considered for each contract for $3,500 awarded under multiple procurement contracts or multiple contracts, with the exception of -16,201 General. (a) the types of fixed-price contracts provide for a fixed price or, where appropriate, an adjustable price; Fixed-price contracts that provide for an adjustable price may include a maximum price, a target price (including target costs), or both. Unless otherwise specified in the contract, the maximum price or target price may only be adjusted on the basis of contractual clauses that provide for an appropriate adjustment or other modification of the contract price in the circumstances indicated. The principal shall use fixed prices or fixed prices with economic price adjustment agreements for the purchase of commercial goods, in so far as this is provided for in point (b) of 12 207. (b) Temporary and material contracts and hourly employment contracts are not fixed-price contracts. 16,202 fixed-price contracts. 16.202-1 Description. A fixed-price contract provides for a price that cannot be adjusted based on the contractor`s experience with costs in performing the contract. This type of contract represents for the contractor the maximum risk and full responsibility for all costs and the resulting profit or loss. It provides maximum incentives for the contractor to control costs and operate efficiently and imposes a minimal administrative burden on the parties. The procuring entity may use a fixed-price procurement contract in conjunction with an incentive for the award fee (see 16.404) and incentives for performance or delivery (see 16.402-2 and 16.402-3) if the surcharge or incentive is based solely on factors other than cost. The type of contract remains a fixed price when used with these incentives.
16.202-2 Request. A fixed-price procurement contract is suitable for the acquisition of commercial goods (see Parts 2 and 12) or the purchase of other supplies or services on the basis of sufficiently precise functional or detailed specifications (see Part 11), if the procuring entity can set fair and reasonable prices from the outset, (e.B. (a) where there is reasonable price competition; (b) there are reasonable price comparisons with previous purchases of identical or similar supplies or services made on a competitive basis or supported by valid certified cost or price data; (c) the available information on costs or prices makes it possible to estimate realistically the expected cost of performance; or (d) performance uncertainties can be identified and reasonable estimates of their impact on costs can be made, and the Contractor is prepared to accept a fixed price that constitutes the assumption of the associated risks. 16,203 fixed-price contracts with economic price adjustment. 16.203-1 Description. (a) A fixed-price contract with an economic price adjustment provides for an upward and downward correction of the declared contract price in the event of the occurrence of certain contingent liabilities. Economic price adjustments are of three general types: (1) Adjustments based on determined prices. These price adjustments are based on increases or decreases from an agreed level in the published or otherwise determined prices of certain items or end-of-contract positions. (2) Adjustments based on actual labour or material costs. These price adjustments are based on increases or decreases in the costs of labor or specified materials that the contractor actually experiences during the performance of the contract. (3) Adjustments based on labour or material cost indices.
These price adjustments are based on increases or decreases in standards or cost indices of labor or materials expressly stated in the contract. (b) The procuring entity may use a fixed-price procurement with an economic adjustment of prices in conjunction with a premium (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) if the surcharge or incentive is based solely on factors other than cost. The type of contract remains fixed price with economic adjustment of prices when used with these incentives. 16.203-2 Request. A fixed-price contract with an economic price adjustment may be used if (i) there are serious doubts as to the stability of the market or the working conditions that will exist during a longer period of performance of the contract, and (ii) contingent liabilities that would otherwise be included in the contract price can be identified and covered separately in the contract. Price adjustments based on fixed prices should normally be limited to contingent liabilities at the industry level. Price adjustments based on labour and material costs should be limited to contingencies beyond the contractor`s control. For the economic adjustment of prices in the case of sealed tender contracts, see 14.408-4. (a) When determining the basic level at which the adjustment is made, the contracting authority shall ensure that the contingency compensation is not doubled by including both the basic price and the adjustment requested by the contractor under the economic price adjustment clause. (b) in the case of contracts which do not require the submission of certified cost or price data, the contracting authority shall obtain adequate data to determine the basis for the adjustment and may request a review of the data transmitted; 16.203-3 Restrictions. A fixed-price contract with an economic adjustment of prices may be applied only if the contracting authority determines that this is necessary either to protect the contractor and the government against significant fluctuations in the costs of labour or materials, or to provide for an adjustment of the market price in the event of a change in the prices set by the contractor.
16.203-4 Contractual clauses. (a) adjustment based on fixed prices and standard deliveries. 1. In the case of negotiation contracts, the contract agent shall include clause 52.216-2, Economic Adjustment of Prices-Standard Supplies, or a clause prescribed by the Agency as approved in paragraph (a)(2) of this Subsection, in invitations and contracts if all of the following conditions apply: (i) A fixed-price contract is provided. (ii) The requirement applies to standard deliveries with a fixed catalogue or market price. (iii) The client has made the decision set out in 16.203-3. (2) If all the conditions of subsection (a)(1) of this subsection apply and the client determines that the use of clause 52.216-2 is inappropriate, the client may use a clause prescribed by the Agency instead of clause 52.216-2. (3) If the negotiated unit price corresponds to a net price after application of a commercial discount from a catalogue or list price, the contracting entity shall document both the catalogue or list price and the discount in the order documents. .