What Is a P Type Government Contract

Procurement shall take place when the contracting entity has signed, distributed or notified the order. Direct MaterialsCompletes the raw materials, purchased parts and subcontractors needed to manufacture and assemble finished products. Direct material costs are the cost of materials used in the manufacture of a product. (b) With the exception of additional fee contracts (see 16,404 and 16,401(e)), incentive contracts include target costs, profit or target costs, and a profit or fee adjustment formula that provides (within a price cap or minimum and maximum commission) as follows: (A) For an order over $30,000, the contract agent — (8) must be an agent for the order order and the delivery order. The Head of the Agency shall appoint a mediator for supply contracts and contracts. The Ombudsman must examine the contractors` complaints and ensure that they have a fair opportunity to examine them in accordance with the procedures laid down in the Treaty. The Ombudsman must be a senior official of the Agency, independent of the contracting entity and who may be the Agency`s competition lawyer. Procurement Automated Source System (PASS)A database maintained by the Small Business Administration that contains information on more than 230,000 small businesses. PasS must be questioned and reviewed by agency staff to find potential contractors. Not all small businesses are listed in the PASS database, but it represents a good sample of business availability in a particular sector.

One of the main reasons for the PASS search is that when sources are found, the results are included in the „Justification for Incomplete and Open Selection Procedures (JOFOC)“. (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. Life-cycle costs The total cost for each agency for the recurrence, operation, support and disposal of items purchased during the term of the contract. 16 600 Scope. Temporary and material contracts and hourly employment contracts are not fixed-price contracts. 16,601 temporary and material contracts. (a) definitions for the purposes of temporary and material contracts. Direct materials are materials that go directly into the final product or that are used or consumed directly in connection with the supply of the final product or service. Hourly rate means the tariff(s) prescribed in the contract for the payment of workers that meets the qualifications of the category of work of a category of work specified in the contract, which – (1) are provided by the contractor; (2) carried out by subcontractors; or (3) Transfer between business units, subsidiaries or affiliates of the Contractor under common control. Material means – (1) Direct Material, including Supplies, transferred between the Contractor`s divisions, subsidiaries or affiliates under common control; (2) subcontracts for supplies and ancillary services for which there is no class of work specified in the contract; (3) Other direct costs (e.B. ancillary services for which there is no category of work specified in the contract, travel expenses, computer use costs, etc.); and (4) applicable indirect costs. (b) Description.

A time and equipment contract provides for the purchase of supplies or services on the basis of – (1) direct hours of work at fixed hourly rates, which include wages, overhead, general and administrative expenses and profits; and (2) the actual costs of materials (except as provided in paragraphs 31.205-26(e) and (f)). (c) enforcement. A time and material contract can only be used if, at the time of placing the order, it is not possible to accurately estimate the extent or duration of the work or to anticipate costs with a reasonable degree of confidence. See 12.207 (b) for the use of temporary and in-kind contracts for certain commercial services. (1) State surveillance. A time and material contract does not provide the contractor with a positive incentive to profit for cost control or work efficiency. Therefore, adequate government monitoring of the contractor`s performance is necessary to provide reasonable assurance that efficient methods and effective cost controls are being applied. (2) Fixed hourly rates.

(i) The contract sets separate fixed hourly rates that include wages, overheads, general and administrative expenses and profits for each category of work (see 16,601 (f)(1)). (ii) For the acquisition of non-commercial goods awarded without reasonable price competition (see 15.403-1 (c) (1)), the contract shall fix separate fixed hourly rates, including wages, overheads, general and administrative costs and profits for each class of workers provided by (A) contractor (b) each subcontractor; and (C) any department, subsidiary or affiliate of the Contractor under common control. (iii) in the case of contracts not awarded in the context of competitive procedures, fixed hourly rates shall apply to services transferred under common control between the contractor`s divisions, subsidiaries or affiliated undertakings, unless they are exempted in accordance with point (2)(iv) of paragraph c of this Section. (A) Does not include the benefit of the transferring organization; but (B) May include the benefit to the prime contractor. (iv) In the case of contractual measures which are not awarded in competition proceedings, the fixed hourly rates for services which meet the definition of the exchange item in point 2.101 and which are transferred between divisions, subsidiaries or affiliated undertakings of the contractor under common control may be the fixed catalogue or the market rate if: (A) It is the common practice of the transferring organization to inter-organizational transfers at a price other than the cost of the commercial work of the contractor or of any of the services, subsidiaries or affiliates of the contractor under common control; and (B) Customer has not found the price unreasonable. (3) Handling fees. If included in the cost of materials, handling costs include only those costs that are clearly excluded from the rate of working time. Material handling costs may include all reasonable indirect costs allocated to direct materials in accordance with the Contractor`s usual accounting procedures in accordance with Part 31. (d) restrictions. A contract or an order for time and material can only be used if- (1) The customer makes a decision and determines that no other type of contract is suitable. (i) be signed by the contract staff before the end of the base period or any option period of the contracts; and (ii) approved by the head of the contractual activity prior to the performance of the base period if the base period plus option periods exceeds three years; and (2) The contract or order includes a maximum price exceeded by the Contractor at its own risk. See also paragraph 12.207(b) for further restrictions on the use of time and equipment or hourly employment contracts for the acquisition of commercial property.

(e) post-award requirements. Before increasing the maximum price of an hourly contract or an hourly contract or a contract order, the agent (1) must conduct a price analysis and other relevant factors to determine whether the action is in the best interest of the government; (2) Document the decision in the contract or in the order document; and (3) If you make an amendment that extends the generality of – (i) a contract, follow the procedures under section 6.303; (ii) An order made under the Federal Supply Schedules must follow the procedures set out in sections 8.405 to 6; or (iii) a procurement under multiple government procurement and supply contracts follows the procedures set out in paragraph 16.505(b)(2). .