(b) This subpart implements Pub. If level unit pricing is not in the Governments interest, the head of a contracting activity may approve the use of variable unit prices, provided that for competitive proposals there is a valid method of evaluation. South Island has the opportunity to earn incentives if they improve efficiency and billing, which they can invest in research and quality-of-care initiatives they are passionate about. They shall not include any costs of labor or materials, or other expenses (except as indicated above), which might be incurred for performance of subsequent program year requirements. So the sustainability team came up with a pilot project to address how to fairly add the additional scope of work and new role for health care providers to the hospitalists schedule and pricing model. The Government has an, Question 17 of 28 You have an Azure Storage account named storage1 that is configured to use the Hot access tier. (b) The contracting officer shall review each management and operating contract, following agency procedures, at appropriate intervals and at least once every 5 years. (1) Leader company, obligating it to subcontract a designated portion of the required end items to a specified follower company and to assist it to produce the required end items; (2) Leader company, for the required assistance to a follower company, and a prime contract to the follower for production of the items; or. 501 for the Federal Supply Schedules (subpart 8.4), and 40 U.S.C. (h) Termination payment. To ensure that all interested sources of supply are thoroughly aware of how multi-year contracting is accomplished, use of presolicitation or pre-bid conferences may be advisable. (b) An agency shall not use an interagency acquisition to circumvent conditions and limitations imposed on the use of funds. (h) Providing incentives to contractors to improve productivity through investment in capital facilities, equipment, and advanced technology. This subpart implements 41 U.S.C. (a) (2) The requesting agency shall also be responsible for furnishing other assistance that may be necessary, such as providing information or special contract terms needed to comply with any condition or limitation applicable to the funds of the requesting agency. (a) However, the preparation and evaluation of dual offers may increase administrative costs and workload for both offerors and the Government, especially for large or complex acquisitions. (2) An informal analysis of prices or an examination of the market indicates that the option price is better than prices available in the market or that the option is the more advantageous offer. (b) The contracting officer for the servicing agency shall ensure that service contractor reporting requirements are met in accordance with subpart 4.17, Service Contracts Inventory. This type of contract is typically used for well-defined, small-scale projects in which changes are rare. An official website of the United States Government, FAC Number: 2023-02 Effective Date: 03/16/2023. For patent rights, see 27.304-2. To perform this calculation, the contracting officer should obtain in-house engineering cost estimates identifying the detailed recurring and nonrecurring costs, and the effect of labor learning. A contract is a binding agreement between a buyer and a seller. A multi-year contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds, and (if it does so provide) may provide for a cancellation payment to be made to the contractor if appropriations are not made. Standard forms can also be useful if the same parties are involved on repeat projects. If cancellation occurs, the Governments liability will be determined by the terms of the applicable contract. (1) One objective, for example, called for improving physicians billing to the provincial Medical Services Plan (MSP) for cost recovery for the hospitalist fees. (a) Interagency acquisitions are commonly conducted through indefinite-delivery contracts, such as task- and delivery-order contracts. The requesting agency administers the order; therefore, no written agreement with the servicing agency is required. (b) Achieve geographic dispersion of suppliers. A variety of contractual clausessuch as termination for convenience, which grants one party total freedom to end the contract after a specified periodare used to try to gain the upper hand. (1) Funds are available; (2) The requirement covered by the option fulfills an existing Government need; (3) The exercise of the option is the most advantageous method of fulfilling the Governments need, price and other factors (see paragraphs (d) and (e) of this section) considered; (4) The option was synopsized in accordance with part 5 unless exempted by 5.202(a)(11) or other appropriate exemptions in 5.202; (5) The contractor does not have an active exclusion record in the System for Award Management (see FAR 9.405-1); (6) The contractors past performance evaluations on other contract actions have been considered; and. The contracting officer shall include these dates in the schedule, as appropriate. (f) Contracts may express options for increased quantities of supplies or services in terms of-. They shall not include any costs of labor or materials, or other expenses (except as indicated above), which might be incurred for performance of subsequent program year requirements. In fact, many companies now believe that even the vaunted keiretsu model, which Toyota and Nissan, among others, used so successfully, ties up capital and limits flexibility. (c) Reduction of administrative burden in the placement and administration of contracts. (c) Replacement of an incumbent contractor is usually based largely upon expectation of meaningful improvement in performance or cost. (c) The conduct of the work is wholly or at least substantially separate from the contractors other business, if any. The written determination shall identify the acquisition categories to which the waiver applies. (b) For DoD, NASA, and the Coast Guard, a multi-year contract which includes a cancellation ceiling in excess of $150 million may not be awarded until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on armed services and appropriations of the House of Representatives and Senate. For DoD, NASA, and the Coast Guard, the head of the agency may enter into a multi-year contract for supplies if-. It may be negotiated as a percentage of the estimated costs but it is written into the contract as a precise amount, not a percentage. Procurement contracts are also known as purchase contracts. (5) A specific price that is subject to change as the result of changes to prevailing labor rates provided by the Secretary of Labor. (f) Avoidance of the need for establishing quality control techniques and procedures for a new contractor each year. 10) Some methods of contracting require more time than others. (b) (2) Laws and regulations that apply to procurements of supplies and services made by DoD through other Federal agencies, including DoD financial management regulations, the Defense Federal Acquisition Regulation Supplement (DFARS), DoD class deviations, and the DFARS Procedures, Guidance, and Information (PGI). (c) A provision that, if the Government determines before award that only the first program year requirements are needed, the Governments evaluation of the price or estimated cost and fee shall consider only the firstyear. (c) (f) The Governments administrative costs of annual contracting may be used as a factor in the evaluation only if they can be reasonably established and are stated in the solicitation. (3) A specified limitation on the total duration of the contract. (a) Method of contracting. The limitation in paragraph (a) of this section shall not apply to the acquisition of supplies and services on behalf of DoD by a nondefense agency during any fiscal year for which the Under Secretary of Defense for Acquisition and Sustainment has determined in writing that it is necessary in the interest of DoD to acquire supplies and services through the nondefense agency during the fiscal year. May modify the clause at 52.222-43 in overseas contracts when laws, regulations, or international agreements require contractors to pay higher wage rates; or. The order should include-. The 100-page-plus document was filled with supplier shall statements that detailed FedExs obligations and outlined dozens of metrics for how Dell would measure success. (c) The period shall be set so as to provide the contractor adequate lead time to ensure continuous production. Both point to the surveys conducted immediately before the process began and one year after the relational contract was in place: The number of people who expressed a positive attitude toward the relationship increased by 84% in just two years. (c) Information on such committees may not be readily available to contracting officers. 11302(e) for Governmentwide acquisition contracts (GWACs). Subpart 17.4 - Leader Company Contracting, Subpart 17.6 - Management and Operating Contracts. Physical asset specificity (location, machinery, processes), Level of integration required with suppliers systems or processes. (d) Substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, make-ready expenses, and phaseout costs. While the contract was being developed, in 2016 and 2017, Canada passed a law legalizing medical assistance in dying. Kim Kerrone, of Island Health, described how the vested methodology broke the impasse. (1) The solicitation contains an option clause; (2) An option is not to be exercised at the time of contract award; (3) A firm-fixed-price contract, a fixed-price contract with economic price adjustment, or other type of contract approved under agency procedures is contemplated; and. 3003(4) which include the-. 'N' represents links. (The DFARS, DoD class deviations, and PGI are accessible at: http://www.acq.osd.mil/dpap/dars). The benefits of informal handshake deals have been studied and promoted over the decades; legal scholars Stewart Macaulay and Ian Macneil were early advocates in the 1960s. This subpart prescribes policies and procedures specific to acquisitions of supplies and services by nondefense agencies on behalf of the Department of Defense (DoD). It is key to the buyer and seller relationship and provides a framework to deal with each other. The head of a contracting activity may authorize the use of a solicitation requesting only multi-year prices, provided it is found that such a solicitation is in the Governments interest, and that dual proposals are not necessary to meet the objectives in 17.105-2. (b) The contracting officer shall ensure that any contract awarded under this arrangement contains a firm agreement regarding disclosure, if any, of contractor trade secrets, technical designs or concepts, and specific data, or software, of a proprietary nature. A growing number of large organizationssuch as the Canadian government, Dell, Intel, AstraZeneca, and the Swedish telecommunications firm Teliaare successfully using this approach. (f) It is crucial that all terms and conditions of the formal relational contract are aligned with the guiding principles. (c) A sole source procurement (called an Other than Full & Open Competition) is when the government enters into a contract with a contractor without going through the typical competitive process as required by law because it deems that the contractor is the only source available that can meet the government requirements. (b) Given the longer performance period associated with multi-year acquisition, consideration in pricing fixed-priced contracts should be given to the use of economic price adjustment terms and profit objectives commensurate with contractor risk and financing arrangements. The formal relational contract addresses these deficiencies. Tradeoff What does Best Value mean? (c) The multi-year contracting method may be used for the acquisition of supplies or services. (e) Waiver. Economic price adjustment clauses. Participation by subcontractors, suppliers, and vendors. Under the new pricing model, when the inpatient population is low, the hospitalists can opt to take time off and save Island Health money. (c) To date, 57 companies have employed the vested methodology. (1) The contractor will incur undue risks; e.g., the price or availability of necessary materials or labor is not reasonably foreseeable; (2) Market prices for the supplies or services involved are likely to change substantially; or, (3) The option represents known firm requirements for which funds are available unless-, (i) The basic quantity is a learning or testing quantity; and. IDENTIFY THE VARIOUS METHODS OF CONTRACTING FOR A SUPPLY OR SERVICE:Contracting methods available which can streamline the contracting timeframe include: . (5) The primary contracting methods used by the government are: micro-purchases; simplified acquisition procedures; sealed bidding; contract by negotiations; and, consolidated purchasing programs, such as the use of GSA schedules, Government Wide Acquisition Contracts and other multiple award vehicles. 2) What is a KEY role of the COR in Acquisition Planning? (a) An independent detailed assessment, developed by a government team member, which includes the cost to the government for services, The Independent Government Estimate includes only direct and indirect cost: . (1) The incumbent contractors overall performance, including, specifically, technical, administrative, and cost performance; (2) The potential impact of a change in contractors on program needs, including safety, national defense, and mobilization considerations; and. Competitive negotiated contract A streamlined method of acquisition refers to contracting methods aimed at making the acquisition process streamlined as well as procurement facilitating. Island Health and South Island formally embedded their interpretations of the principles in the preamble of their contract. Accordingly, agencies should provide such information through its internal regulations. [Identify the various methods of contracting for a supply or service] [Remediation Accessed :N] Competitive Negotiated contract Ordering off a Blanket Purchase Agreement Simplified Acquisition Procedures For DoD, NASA, and the Coast Guard, the authorities cited in 17.101 do not apply to contracts for the purchase of supplies to which 40 U.S.C.759 applies (information resource management supply contracts). Economic price adjustment clauses are adaptable to multi-year contracting needs. For example, Island Health never shared the budget with the hospitalists. (c) The contracting officer may exercise options only after determining that-. The use of such a contract will result in significant savings of the total estimated costs of carrying out the program through annual contracts; (2)
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