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Special Contracting Methods FAR Part 17 Scope 1 Multi year Contracting FAR 17 1 – “Contract for the purchase of supplies or services for more than one but less than

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Special Contracting Methods FAR Part 17 Scope 1 Multi year Contracting FAR 17 1 – “Contract for the purchase of supplies or services for more than one but less than Powered By Docstoc
					                     Special Contracting Methods (FAR Part 17)

Scope:
1. Multi-year Contracting (FAR 17.1) – “Contract for the purchase of supplies or
   services for more than one but less than five years”. Authority drawn from Section
   304B of the Federal Property and Administration Act of 1949.
    Definitions
        Cancellation
           Ceilings – maximum charge contractor can receive in the event of
              cancellation
           Charges – amount of unrecovered costs which would have been recouped
              through amortization over the full term of the contract.
        Non-recurring
        Recurring
        Term for convenience
    Objectives
        Lower costs – no startup
        Standardization
        Less administrative costs
        Continuity
        Stabilization
        Broaden competitive base

2. Options (FAR 17.2) – Differs from multi-year where buyer may unilaterally elect to
   purchase additional quantities for an extend period of time at a pre-agreed to
   price/quantity
    States period when option may be exercised, quantities, prices, duration to
       specific line items
    Reduces risk to buyer but not in buyers interest when –
        Minimum economic quantities to recover startup costs and costs to produce
           small quantities
        Quantities too far into the future to prohibit out year competition
        Undue risks may occur e.g. future price reductions/availability of supplies
    Contracting officer can exercise an option after determining that
        Funds are available
        Fulfills a need
        Most advantageous to the government
3. Leader Company Contracting (FAR 17.4) – A developer or sole producer of a system
   is designated as a leader company only when:
    No other source is available that can meet requirements
    Only leader company can provide assistance to follower companies
    Can subcontract to follower companies and provide assistance
    Must have firm agreements in place so as to not violate anything of a proprietary
       nature or trade secrets
4. Interagency Acquisitions (FAR 17.5) – Executed under the Economy Act providing
   authority for one agency to procure from another
    Use when determination and finding (D&F) shows it’s in best interest of the
       government and should be used as a matter of convenience and economy
    Agencies have the capability to enter into such arrangements
    Specifically authorized by law
5. Management and Operating Contracts (FAR 17.6) – an agreement under which the
   Government contracts for the operation, maintenance, or support, on it’s behalf of a
   government-owned or controlled research, development special production or testing
   establishment wholly or principally devoted to one or more major programs of the
   contracting federal agency.
    Management Contracts shall not be used for:
    Functions involving the direction, supervision and control of government
       personnel (except for supervision incidental to training)
    Provides for functions involving the exercise of police or regulatory powers in the
       name of the government (other than guard or protection services)
    Functions determining basic government policies
    day to day staff or management functions

				
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posted:8/23/2011
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Description: Startup Costs Federal Contracting document sample