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Contract TYPE (see FAR Part 16) (i.e., fixed price (FP), FP with economic price adjustment, cost-reimbursement, incentive, time and materials, IDIQ, letter contracts, agreements under FAR Subpart 16.7, etc.). Note in FAR 52.301 that a clause must be in both the contract and the solicitation but provisions are only in solicitations.
Other exceptions are stated in FAR 15.403-1(b) or may be adopted under a waiver requested by the contracting officer in exceptional circumstances. If certified cost or pricing data has been requested by the Government and submitted by an offeror, but an exception is later found to apply, the data should not be considered to be "certified".
If FAR Part 15 is used, there must be a proposal evaluation under FAR 15.305 to include a "fair and reasonable" price determination under FAR 15.305(a)(1), a past performance evaluation under FAR 15.305(a)(2) and a technical evaluation under FAR 15.305(a)(3).
Calculation of Point of Total assumption (the case when EAC exceeds PTA that should be treated as a risk trigger, is shown) The point of total assumption (PTA) is a point on the cost line of the profit-cost curve determined by the contract elements associated with a fixed price plus incentive-Firm Target (FPI) contract above which the seller effectively bears all the costs of a cost overrun.
Federal legislation in the 1940s excluded use of this type of contract in various defense projects, [4] and the U.S. Federal Acquisition Regulations specifically prohibit the use of this type for U.S. Federal Government contracting and in federal sub-contracts except firm fixed price ones (FAR Part 16.102). [6]
While paying a transfer fee may seem counterintuitive, the interest savings usually far outweigh this upfront cost. For instance, a 3% fee on $6,000 is $180 — much less than the $1,099 in ...
Tools that may be part of costs estimation are cost indexes. These factors promote time adjustment of capital costs, following changes in technology, availability of materials and labor, and inflation. [22] Due to the inherent unavailability of up-to-date Chemical Process Engineering cost literature, several inflation or cost indexes are available.
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