ing the reasonableness of the total proposed price, such as the technical, production or financial risk assumed, the complexity of work, the extent of competitive pricing, and the contractor's record for efficiency, economy and ingenuity. as well as available cost estimates. He must be free to bargain for a total price which equitably distributes the risks between the contractor and the Government and provides incentives for efficiency and cost reduction. In negotiating such a price, it is not possible to identify the treatment of specific cost elements since the bargaining is on a total price basis. Thus, while cost data is often a valuable aid, it will not control negotiation of prices for work to be performed, or a target price under an incentive contract. [25 F.R. 14309, Dec. 31, 1960] ap § 15.603 Cost principles and their use. (a) When, pursuant to § 15.602, costs are to be considered in the negotiation of fixed-price type contracts, the propriate subpart of this part shall be used as a guide in the evaluation of cost data required to establish a fair and reasonable price in conjunction with other pertinent considerations as set forth more fully in Subpart H, Part 3, of this chapter, and-in the case of negotiated termination settlements-Subpart C, Part 8 of this chapter. (b) In retrospective pricing, whenever an occasion arises in which acceptability of a specific item of cost becomes an issue, the appropriate part of this Part 15 will serve as a guide for the contracting officer in his conduct of negotiations. (c) In applying this part to fixed-price contracts, contracting officers will: (1) Not be expected to negotiate agreement on every individual element of cost; and (2) be expected to use their judgment as to the degree of detail in which they consider the individual elements of cost in arriving at their evaluation of total cost, where such evaluation is appropriate. However, the negotiation record should fully substantiate and justify the reasoning leading to any negotiated price. (d) In order to permit the proper evaluation of cost data submitted by contractors for use in negotiating prices, it may be necessary to obtain breakdowns or account analyses in respect to some cost items particularly those whose treatment may be dependent upon special circumstances as stated in the principles. Con 16.700 16.701 16.702 16.403-4 Inspection services. 16.702-1 16.403-5 Lump sum architect-engineer con tract format. 16.702-2 16.702-3 Subpart G-Contract Termination Forms 16.702-4 Scope of subpart. Notices of termination. Settlement proposal forms. Settlement Proposal; Inventory Settlement proposal: Total Cost Settlement Proposal for Cost-Re- Settlement Proposal; Short Form (DD Form 831). 16.702-5 Inventory Schedules (DD Forms 542, 543, 544, 545, and 832). 16.702-6 Schedule of Accounting Information (DD Form 546). Application for Partial Payment (DD Form 548). 16.703 16.704 16.405-4 Contract modification forms. Notice of Audit Status Date (DD Form 5478). Sec. 16.826 Delay in Delivery (Flash Notice) (DD Form 375–2). AUTHORITY: The provisions of this Part 16 issued under R.S. 161, secs. 2202, 2301-2314, 70A Stat. 120, 127-133; 5 U.S.C. 301, 10 U.S.C. 2202, 2301-2314. § 16.000 Scope of part. This part prescribes forms for use in connection with the procurement of supplies and services. In using these forms for procurement outside the United States, its possessions, and Puerto Rico, contract provisions which are made inapplicable to such procurement by or under authority of ASPR may be deleted. [32 F.R. 4261, Mar. 18, 1967] Subpart A-Forms for Advertised and Negotiated Supply and Services Contracts SOURCE: The provisions of this Subpart A appear at 32 F.R. 4261, Mar. 18, 1967, unless otherwise noted. § 16.100 Scope of subpart. This subpart prescribes forms for use in procuring supplies and services either by formal advertising or by negotiation (but see also Subpart B of this part); it is not applicable to specialized procurements for which other instructions are prescribed by this subchapter or Departmental procedures (see §1.108). § 16.101 Forms for advertised supply or services contracts (Standard Forms 33, 33A, 32, 36, 30 and 26). § 16.101-1 General. The following contract forms shall be used in effecting procurements of supplies or services by formal advertising: (a) Solicitation, Offer, and Award (Standard Form 33) and the reverse side (Representations, Certifications, and Acknowledgements); (b) Solicitation, Offer and Award (Standard Form 33A July 1966) (The clause set forth in § 7.103-14 shall be substituted for the present clause 9, Discounts.); (c) General Provisions (Supply Contract) (Standard Form 32 June 1964 Edition) (1) The clause set forth in § 1.805-3 (a) of this chapter shall be substituted for the present clause 22, Utilization of Concerns in Labor Surplus Areas; and (2) The clause set forth in § 7.103-6 shall be substituted for the present clause 6, Responsibility for Supplies. (d) Any other special terms for the solicitation or additional contract provisions which are prescribed by the ASPR or Departmental procedures (see § 1.108 of this chapter). (The Federal, State, and Local Taxes clause at § 11.401-1 of this chapter shall be used as a part of Standard Form 32, when that standard form is used in any advertised procurement or in any of the other circumstances set forth in § 11.401-1. In the case of a noncompetitive negotiated fixed-price contract in excess of $10,000, where the contracting officer is satisfied (1) that the contract price does not include contingencies for State and local taxes, and (2) that unless this clause is used the contract price will include such contingencies, the Federal, State, and Local Taxes clause at § 11.401-2 of this chapter shall be made a part of the contract.); (a) The Solicitation, Offer, and Award (Standard Form 33) shall be prepared in accordance with § 2.201 of this chapter. One copy of Standard Form 33A shall accompany each copy of Standard Form 33. Offerors shall be requested to return not more than three signed copies of their offers. (b) Standard Form 32 and any additional general provisions may be attached to each copy of the Solicitation. Alternatively, only one copy of Standard Form 32 and any additional general provisions need be furnished to each offeror for retention if such provisions are specifically incorporated by reference, including each form name, number, and date, in the Schedule. Provisions which are inapplicable to a particular procurement or to military procurements generally may be deleted by appropriate reference in an Alterations in Contract clause. (c) Award of contracts shall be accomplished by completing the Award portion of Standard Form 33 and furnishing a copy of the form, so completed, to each successful offeror. Alternatively, such award may be accomplished by completing the Award portion of Standard Form 26 and furnishing it to each successful offeror. Papers previously forwarded to offerors need not accompany the successful offeror's copy of the Award document. The required use of the Award portion of Standard Form 33 or Standard Form 26 does not preclude the additional use of informal documents, including telegrams, as notices of awards. (d) Continuation Sheet (Standard Form 36) shall be used when additional space is required for Schedule, Amendment/Modification, or Award; however, where the columns thereon are not required, a blank sheet may be used. The appropriate Procurement Instrument Identification number and page number shall be shown on all continuation sheets. § 16.102 Forms for negotiated supply or services contracts (Standard Forms 18, 26, DD ASPR Form 1270, Standard Form 32,1 DD ASPR Form 748,1 and Standard Forms 33, 33A,1 36, and 30). [33 F.R. 15392, Oct. 17, 1968] § 16.102-1 Request for quotation (Standard Form 18). (a) General. Standard Form 18 is prescribed for obtaining price, cost, delivery, and related information from suppliers. (b) Conditions for use. Standard Form 18 is authorized for use when it appears reasonably certain that the procurement will be consummated by (1) a fixed-price contract involving extensive negotiation or (2) a cost-reimbursement contract. Continuation Sheet (Standard Form 36) may be used as required. Standard Form 18 may be used for negotiated procurements in excess $2,500, and for negotiated procurements of $2,500 or less (including purchase orders) when written solicitations (other than by telegram) of quotations are required. (See 3.608-2(c) (1) of this chapter for use of DD Form 1155 as a request for quotations.) Two copies of standard Form 18 shall be sent to each of 1 On Standard Form 32, 1964 edition, substitute the clause in § 1.805-3(a) of this chapter for clause 22 and the clause in § 7.103-6 of this chapter for clause 6. On Standard Form 33A, July 1966 edition, substitute the clause in § 7.103-14 of this chapter for clause 9. On DD ASPR Form 748, January 1965 edition, substitute the clause in § 1.8053(a) of this chapter for clause 25 and the clause in § 1.805–3(b) for clause 43. ing the reasonableness of the total proposed price, such as the technical, production or financial risk assumed, the complexity of work, the extent of competitive pricing, and the contractor's record for efficiency, economy and ingenuity, as well as available cost estimates. He must be free to bargain for a total price which equitably distributes the risks between the contractor and the Government and provides incentives for efficiency and cost reduction. In negotiating such a price, it is not possible to identify the treatment of specific cost elements since the bargaining is on a total price basis. Thus, while cost data is often a valuable aid, it will not control negotiation of prices for work to be performed, or a target price under an incentive contract. [25 F.R. 14309, Dec. 31, 1960] § 15.603 Cost principles and their use. (a) When, pursuant to § 15.602, costs are to be considered in the negotiation of fixed-price type contracts, the appropriate subpart of this part shall be used as a guide in the evaluation of cost data required to establish a fair and reasonable price in conjunction with other pertinent considerations as set forth more fully in Subpart H, Part 3, of this chapter, and-in the case of negotiated termination settlements-Subpart C, Part 8 of this chapter. (b) In retrospective pricing, whenever an occasion arises in which acceptability of a specific item of cost becomes an issue, the appropriate part of this Part 15 will serve as a guide for the contracting officer in his conduct of negotiations. (c) In applying this part to fixed-price contracts, contracting officers will: (1) Not be expected to negotiate agreement on every individual element of cost; and (2) be expected to use their judgment as to the degree of detail in which they consider the individual elements of cost in arriving at their evaluation of total cost, where such evaluation is appropriate. However, the negotiation record should fully substantiate and justify the reasoning leading to any negotiated price. (d) In order to permit the proper evaluation of cost data submitted by contractors for use in negotiating prices, it may be necessary to obtain breakdowns or account analyses in respect to some cost items particularly those whose treatment may be dependent upon special circumstances as stated in the principles. Con |