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DFARS 216



Part 216—Types of Contracts

TABLE OF CONTENTS

(Revised September 23, 2016)

SUBPART 216.1--SELECTING CONTRACT TYPES

216.102 Policies.

216.104-70 Research and development.

SUBPART 216.2--FIXED-PRICE CONTRACTS

216.203 Fixed-price contracts with economic price adjustment.

216.203-4 Contract clauses.

216.203-4-70 Additional clauses.

SUBPART 216.3--COST-REIMBURSEMENT CONTRACTS

216.301-3 Limitations.

216.306 Cost-plus-fixed-fee-contracts.

216.307 Contact clauses

SUBPART 216.4--INCENTIVE CONTRACTS

216.401 General.

216.401-71 Objective criteria.

216.402 Application of predetermined, formula-type incentives.

216.402-2 Technical performance incentives.

216.403 Fixed-price incentive contracts.

216.403-1 Fixed-price incentive (firm target) contracts.

216.403-2 Fixed-price incentive (successive targets) contracts.

216.405 Cost-reimbursement incentive contracts.

216.405-1 Cost-plus-incentive-fee contracts.

216.405-2 Cost-plus-award-fee contracts.

216.405-2-70 Award fee reduction or denial for jeopardizing the health or safety of

216.405-2-71 Award fee reduction or denial for failure to comply with requirements relating to performance of private security functions.

216.406 Contract clauses.

216.470 Other applications of award fees.

SUBPART 216.5--INDEFINITE-DELIVERY CONTRACTS

216.501-2-70 General.

216.504 Indefinite-quantity contracts.

216.505 Ordering.

216.505-70 Orders under multiple award contracts.

216.506 Solicitation provisions and contract clauses.

SUBPART 216.6--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER
CONTRACTS

216.601 Time-and-materials contracts.

216.603 Letter contracts.

216.603-2 Application.

216.603-3 Limitations.

216.603-4 Contract clauses.

SUBPART 216.7--AGREEMENTS

216.703 Basic ordering agreements.

SUBPART 216.1—SELECTING CONTRACT TYPES (See Class Deviation 2019-O0001)

(Revised May 10, 2016)

216.102 Policies.

In accordance with section 811 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239), use of any cost-reimbursement line item for the acquisition of production of major defense acquisition programs is prohibited, unless the exception at 234.004(2)(ii) applies.

216.104 Factors in selecting contract type.

Contracting officers shall follow the principles and procedures in Director, Defense Procurement and Acquisition Policy memorandum dated April 1, 2016, entitled “Guidance on Using Incentive and Other Contract Types,” when selecting and negotiating the most appropriate contract type for a given procurement. See PGI 216.104.

216.104-70 Research and development.

Follow the procedures at PGI 216.104-70 for selecting the appropriate research and development contract type.

SUBPART 216.2--FIXED-PRICE CONTRACTS

(Revised June 25, 2013)

216.203 Fixed-price contracts with economic price adjustment.

216.203-4 Contract clauses.

216.203-4-70 Additional provisions and clauses.

SUBPART 216.3--COST-REIMBURSEMENT CONTRACTS (See Class Deviation 2019-O0001)

(Revised September 23, 2016)

216.301-3 Limitations.

For contracts in connection with a military construction project or a military family housing project, contracting officers shall not use cost-plus-fixed-fee, cost-plus-award-fee, or cost-plus-incentive-fee contract types (10 U.S.C. 2306(c)). This applies notwithstanding a declaration of war or the declaration by the President of a national emergency under section 201 of the National Emergencies Act (50 U.S.C. 1621) that includes the use of the Armed Forces.

216.306 Cost-plus-fixed-fee contracts.

216.307 Contract clauses.

SUBPART 216.4--INCENTIVE CONTRACTS

(Revised September 28, 2018)

216.401 General.

216.401-71 Objective criteria.

216.402 Application of predetermined, formula-type incentives.

216.402-2 Technical performance incentives.

See PGI 216.402-2 for guidance on establishing performance incentives.

216.403 Fixed-price incentive contracts.

216.403-1 Fixed-price incentive (firm target) contracts.

216.403-2 Fixed-price incentive (successive targets) contracts.

See PGI 216.403-2 for guidance on the use of fixed-price incentive (successive targets) contracts.

216.405 Cost-reimbursement incentive contracts.

216.405-1 Cost-plus-incentive-fee contracts.

See PGI 216.405-1 for guidance on the use of cost-plus-incentive-fee contracts.

216.405-2 Cost-plus-award-fee contracts.

216.405-2-70 Award fee reduction or denial for jeopardizing the health or

safety of Government personnel.

“Covered incident” and “serious bodily injury,” as used in this section, are defined in the clause at 252.216-7004, Award Fee Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel.

(b) The contracting officer shall include in the evaluation criteria of any award-fee plan, a review of contractor and subcontractor actions that jeopardized the health or safety of Government personnel, through gross negligence or reckless disregard for the safety of such personnel, as determined through—

216.405-2-71 Award fee reduction or denial for failure to comply with requirements relating to performance of private security functions.

clause at 252.225-7039, Defense Contractors Performing Private Security Functions Outside the United States, the contracting officer shall consider reducing or denying award fees for a period if the contractor fails to comply with the requirements of the clause during such period. The contracting officer’s evaluation also shall consider recovering all or part of award fees previously paid for such period.

216.406 Contract clauses.

the Health or Safety of Government Personnel, in all solicitations and contracts

containing award-fee provisions.

216.470 Other applications of award fees.

See PGI 216.470 for guidance on other applications of award fee.

SUBPART 216.5--INDEFINITE-DELIVERY CONTRACTS

(Revised June 29, 2018)

216.501-2-70 General.

216.504 Indefinite-quantity contracts.

Acquisition Policy, via the OUSD(AT&L)DPAP/CPIC email address at osd.pentagon.ousd-atl.mbx.cpic@mail.mil.

216.505 Ordering.

reporting requirements established in accordance with subpart 217.7 when placing

orders under non-DoD contracts in amounts exceeding the simplified acquisition

threshold.

216.505-70 Orders under multiple award contracts.

If only one offer is received in response to an order exceeding the simplified acquisition threshold that is placed on a competitive basis, the contracting officer shall follow the procedures at 215.371.

216.506 Solicitation provisions and contract clauses.

18, Ordering, in solicitations and contracts when a definite-quantity contract, a requirements contract, or an indefinite-quantity contract is contemplated.

252.215-7008, Only One Offer, as prescribed at 215.371-6 and 215.408(3), respectively.

SUBPART 216.6--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

(Revised May 30, 2018)

216.601 Time-and-materials contracts. (DEVIATION 2018-O0018)

and (2) of this section do not apply to contracts that, as determined by the head of the contracting activity—

operations; or

Class Deviation- 2018-O0018, Micro-Purchase Threshold, Simplified Acquisition Threshold, and Special Emergency Procurement Authority. This clause deviation is effective on August 31, 2018, and remains in effect until incorporated into the FARS or DFARS, or until otherwise rescinded.

(d) Limitations.

(iv) Support response to an emergency or major disaster.

216.603 Letter contracts.

216.603-2 Application.

FAR 16.603-2(c)(3).

216.603-3 Limitations.

See Subpart 217.74 for additional limitations on the use of letter contracts.

216.603-4 Contract clauses.

its prescription at 217.7406(b), instead of the clause at FAR 52.216-25, Contract

Definitization.

SUBPART 216.7--AGREEMENTS

(Revised July 11, 2006)

216.703 Basic ordering agreements.

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