This series of FAR summaries is meant to take a meaningful portion of the Federal Acquisition Regulations to ensure an easy-to-understand approach to maintain that readers comprehend the process of doing business with the government and that the government exercises a fair and reasonable approach to doing business with the general public.
FAR 16.104 Factors In Selecting Contract Types
Your Contracting Officer analyzes price competition, conducts price analysis and cost analysis, addresses the type and complexity of the buy, the possibility of combining contract types, understands possible urgencies if any, familiarizes themselves with the period of performance, possesses a working knowledge of vendor capabilities, and a general confidence of the offeror’s common day-to-day business practices.
A fixed price contract is usually the goal. FAR 16.2 allows us to understand that these contracts are the framework for buying commercial goods and services because accepted pricing has been established in either the commercial marketplace, federal arena or both. Variations on this basic contract do exist.
The CO may recommend a cost reimbursement contract (FAR 16.3) when buying services for research, development of a product, a study to create or prove a theory as well as a type of test of a product, service or hypothesis. Variations of this contract type are also present.
The CO has the option to create an incentive contract (FAR 16.4) to obtain a cheaper price or faster delivery. Fixed priced and cost reimbursement contracts apply.
The government can introduce the possibility of using an indefinite delivery contract (FAR 16.5) when a standing agreement is established over a longer period of time.
FAR 16.6 allows the CO to act in times of emergency to establish normalcy as in a time and materials contract (FAR 16.601) to repair the federal site or work environment for example, to use a labor hour contract (FAR 16.602) for landscaping needs for example or a letter contract (FAR 16.603) in extreme circumstances which requires goods or services before negotiating or paperwork is feasible.
FAR 16.7 allows the government to establish a list of credible vendors for purchasing goods or services. Think of it as a schedule outside of the FSS program.
As an offeror you play a role in contract selection because it is negotiable. Don’t always think you are going to get incentive contracts, though.
My experience lies with fixed priced contracts but I was trained to know all of them. Cost reimbursement agreements would be fun to learn.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation.
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