FAR 52.217-3, 52.217-4 & FAR 52.217-5 Evaluation of Options

Applicability:  As stated at FAR 17.208(a) thru (c), the provisions at FAR 52.217-3, 52.217-4, and 52.217-5 are included in solicitations as follows: (a) Insert FAR 52.217-3 when the solicitation includes an option clause and does not include one of the provisions prescribed in paragraph (b) or (c) below. (b) Insert FAR 52.217-4 when the solicitation includes an option clause, the contracting officer has determined that there is a reasonable likelihood that the option will be exercised, and the option may be exercised at the time of contract award. (c) Insert FAR 52.217-5 when: (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 … Continue reading

FAR 52.216-31 Time-and-Materials/Labor-Hour Proposal Requirements (Part 3)

Commercial Item Acquisition NOTE: This is the third in a three-part series on Time-and-Materials/Labor-Hour Proposal Requirements.  Part 1 addressed non-commercial item acquisition with adequate price competition (FAR 52.215-29).  Part 2 addressed non-commercial item acquisitions where there is not adequate price competition (FAR 52.216-30).  This Part 3 addresses commercial item acquisitions at FAR 52.216-31 (which must, by law, be awarded based on adequate price competition).    Applicability: As stated at FAR 16.601(f) (3), the solicitation provision at FAR 52.216 31 applies to Time-and-Materials/Labor Hour (T&M./LH) solicitations for all acquisitions contemplating the use of a Commercial Time-and-Materials or Labor-Hour contract.   Key Requirements: T&M/LH contracts provide for reimbursement to the contractor based on a fixed hourly rate for each labor category listed in the contract.  Under the current FAR … Continue reading

FAR 52.216-30 Time-and-Materials/Labor-Hour Proposal Requirements (Part 2)

Non-Commercial Item Acquisition with Adequate Price Competition NOTE: This is the second in a three-part series on Time-and-Materials/Labor-Hour Proposal Requirements.  Part 1 addressed non-commercial item acquisition with adequate price competition. This Part 2 addresses non-commercial item acquisitions where there is not adequate price competition (FAR 52.216-30).  Part 3 will address commercial item acquisitions at FAR 52.216-31 (which must, by law, be awarded based on adequate price competition).    Applicability: As stated at FAR 16.601(f)(2), the solicitation provision at FAR 52.216 30 applies to Time-and-Materials/Labor Hour (T&M./LH) solicitations for non-commercial item acquisitions, where the price is not expected to be based on adequate price competition.   Key Requirements: T&M/LH contracts provide for reimbursement to the contractor based on a fixed hourly rate for each labor category listed in the … Continue reading

FAR 52.216-29, Time-and-Materials/Labor-Hour Proposal Requirements

Non-Commercial Item Acquisition with Adequate Price Competition NOTE: This is the first in a three-part series on Time-and-Materials/Labor-Hour Proposal Requirements.  This Part 1 addresses non-commercial item acquisition with adequate price competition.  Part 2 will address non-commercial item acquisitions where there is not adequate price competition (FAR 52.216-30).  Part 3 will address commercial item acquisitions at FAR 52.216-31 (which must, by law, be awarded based on adequate price competition).    Applicability: As stated at FAR 16.601(f)(1), the solicitation provision at FAR 52.216 29 applies to Time-and-Materials/Labor Hour (T&M./LH) solicitations for non-commercial item acquisitions, where the price is expected to be based on adequate price competition.   Key Requirements: T&M/LH contracts provide for reimbursement to the contractor based on a fixed hourly rate for each labor category listed in the … Continue reading

FAR 52.215-16 AND FAR 52.215-17, Facilities Capital Cost of Money

Applicability: These FAR solicitations/clauses address the allowability/reimbursement of facilities capital cost of money. FAR 52.215-16, Facilities Capital Cost of Money, is included in solicitations expected to result in contracts that are subject to FAR Subpart 31.2 (the cost principles for contracts with commercial organizations). FAR 52.215-17, Waiver of Facilities Capital Cost of Money, is included in the contract if the contractor receiving the award did not propose facilities capital cost of money in its offer.   Key Requirements: The solicitation requirement at FAR 52.215-16 and the contract clause at FAR 52.215-17 work in tandem to address the allowability of cost of money under the awarded contract. FAR 52.215-16 states that facilities capital cost of money will be an allowable cost under the contemplated contract, if … Continue reading

FAR 52.216-7, Allowable Cost and Payment (Part 2 of 2)

Applicability: This FAR clause is incorporated in cost reimbursement contracts and Time-and-Materials (T&M) contracts for other than commercial items. For T&M contracts, the clause only applies to the part of the contract that reimburses materials on the basis of actual cost. The clause also includes four alternate versions, whose inclusion was discussed in Part 1 of this two-part series.   Key Requirements: The clause addresses two key areas, (1) interim reimbursement of costs, and (2) determination of final indirect rates. Part 1 of the two part series addressed the interim reimbursement of costs. This Part 2 of our series addresses the determination of final indirect rates. In regards to the determination of final indirect rates, the clause requires the contractor to submit an adequate final … Continue reading

FAR 52.236-1, Performance of Work by the Contractor (A Hard Clause for OCONUS Construction Contractors)

The US government, and in particular the DoD, has spent, and will continue to spend, millions of dollars on OCONUS construction projects.  Contracts have been awarded for building complete compounds in Djibouti, Africa, troop barracks in Afghanistan, and runways in Qatar.  Unsurprisingly, there’s no shortage of bidders for these projects – with their millions of dollars in revenue.  Many large US government contractors, as well as foreign construction firms, have competed over and over again for these projects.  Inasmuch as all of these construction projects are FAR based, the RFPs are substantially similar, containing identical clauses and provisions, even though, of course, the SOWs differ.  One clause consistently included in all of the respective RFPs, and which causes a great deal of angst for many … Continue reading

FAR 52.216-7, Allowable Cost and Payment (Part 1 of 2)

Applicability: This FAR clause is incorporated in cost reimbursement contracts and Time-and-Materials (T&M) contracts for other than commercial items.  For T&M contracts, the clause only applies to the part of the contract that reimburses materials on the basis of actual cost.  The clause also includes four alternate versions, which are included in contracts as follows (the alternate versions generally provide additional wording regarding the frequency of payments): Alternate I is included in Construction Contracts that also include the clause at FAR 52.237-27, Prompt Payment for Construction Contracts; Alternate II is included if the contract is with an educational institution; Alternate III is included if the contract is with a State or local government; and Alternate IV is included if the contract is with (a) a … Continue reading

FAR 52.211-6, Brand Name or Equal

Applicability: This FAR solicitation provision is included when “brand name or equal” purchase descriptions are included in a solicitation.   Key Requirements:  For items identified in the solicitation as “brand name or equal”, this solicitation provision requires that the offeror’s proposal indicate each product that is being offered as an “equal” product.  In addition, for each equal product, the proposal must include a description reflecting the characteristics and level of quality that will satisfy the salient physical, functional, or performance characteristics of “equal” products specified in the solicitation.  The proposal must also clearly identify the item by brand name (if any), and make/model number.  In addition, the proposal must include descriptive literature such as illustrations, drawings, or a clear reference to previously furnished descriptive data or … Continue reading

FAR 52.230-6, Administration of Cost Accounting Standards

NOTE: This is Part II of a two-part series on this clause.   Applicability: This FAR contract clause is incorporated into all contracts subject to the Cost Accounting Standards.  The clause focuses on administering the requirements imposed under the Cost Accounting Standards.   This clause provides a process for the contractor and CFAO to administer (1) changes in cost accounting practice (required, unilateral, and desirable changes), and (2) noncompliances.  In this Part 2 of the two part series, we will address noncompliances.  Note that a Government final determination in administering all CAS issues is made by the Cognizant Federal Agency Official (CFAO).  The Procuring Contracting Officer (PCO) must delegate CAS administration to the CFAO, i.e., the PCO is not authorized under the FAR to make CAS determinations. … Continue reading