The 5 Important Cs Of Pricing

If all of the situations in paragraph of this subsection apply and the contracting officer determines that using the clause at 52.216-2 is inappropriate, the contracting officer may use an agency-prescribed clause as an alternative of the clause at 52.216-2. If performance underneath the proposed contract entails concurrent operations beneath different contracts, the influence of those contracts, together with their pricing preparations, should be considered. Contracts ensuing from sealed bidding shall be firm-fastened-worth contracts or fastened-worth contracts with economic worth adjustment. The quantity and nature of the profit incentive supplied to the contractor for attaining or exceeding specified standards or goals. Fee-Determining Official means the designated Agency official who evaluations the recommendations of the Award-Fee Board in figuring out the quantity of award charge to be earned by the contractor for every analysis period.

• This contract sort specifies a goal cost, a goal payment, minimum and maximum charges, and a charge adjustment formulation.
• The contracting officer shall embody in each letter contract the clauses required by this regulation for the type of definitive contract contemplated and any extra clauses identified to be appropriate for it.
• The contracting officer’s certification that the justification is accurate and complete to the most effective of the contracting officer’s knowledge and perception.
• __________ pricing tactics decrease the worth of a product beneath price.

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307 Contract Clauses

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The value-plus-incentive-payment contract is a cost-reimbursement contract that gives for the initially negotiated fee to be adjusted later by a method based on the relationship of total allowable prices to whole target prices. This contract type specifies a goal cost, a goal fee, minimum and maximum fees, and a fee adjustment method. After contract efficiency, the fee payable to the contractor is decided in accordance with the method.

603 Letter Contracts

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The contracting officer should think about using an economic price adjustment clause based mostly on value indexes of labor or material beneath the circumstances and topic to approval as described in paragraphs and of this part. If all circumstances in paragraph of this section apply and the contracting officer determines that using the clause at fifty two.216-four is inappropriate, the contracting officer might use an company-prescribed clause as a substitute of the clause at fifty two.216-four. Before getting into into the contract, the contracting officer and contractor must agree in writing on the id of the standard provides and the corresponding line items to which the clause applies. If all circumstances in paragraph of this subsection apply and the contracting officer determines that the use of the clause at fifty two.216-3 is inappropriate, the contracting officer might use an agency-prescribed clause as a substitute of the clause at fifty two.216-three.

Penetration Pricing

When buying info technology and related companies, consider the usage of modular contracting to cut back program risk (see 39.103). Performance-primarily based acquisition strategies must be used to the maximum extent practicable, if the contract or order is for companies (see 37.102 and subpart 37.6). In general, the contracting officer does not synopsize orders under indefinite-delivery contracts; except see 16.505 and , and 16.505. The mix of sources a contractor should have to perform expected task or delivery order necessities. The contract shall state, if possible, the maximum restrict of the contractor’s obligation to deliver and the Government’s obligation to order. The contract may also specify maximum or minimal portions that the Government might order beneath every particular person order and the utmost that it could order throughout a specified time frame.

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