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DFARS 216



Part 216—Types of Contracts

TABLE OF CONTENTS

(Revised November 20, 2015)

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

216.306 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

(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

(Revised September 30, 2013)

216.301-3 Limitations.

See Class Deviation 2013-O0009, entitled Prohibition on the Use of Cost-Type Contracts for Production of Major Defense Acquisition Programs, dated March 11, 2013, which prohibits the use of a cost-type contract for the production of a major defense acquisition program except as provided in section 811 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239), which is effective until it is incorporated into the DFARS or is otherwise rescinded.

216.306 Cost-plus-fixed-fee contracts.

216.307 Contract clauses.

SUBPART 216.4--INCENTIVE CONTRACTS

(Revised June 30, 2016)

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.

216.470 Other applications of award fees.

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

SUBPART 216.5--INDEFINITE-DELIVERY CONTRACTS

(Revised October 30, 2015)

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.

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.

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

(Revised May 26, 2015)

216.601 Time-and-materials contracts.

216.603 Letter contracts.

216.603-2 Application.

216.603-3 Limitations.

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

216.603-4 Contract clauses.

SUBPART 216.7--AGREEMENTS

(Revised July 11, 2006)

216.703 Basic ordering agreements.

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