“Fair-Opportunity-to-be-Considered” Rule

“Fair-Opportunity-to-be-Considered” Rule: All prime contractors (including their designated subcontractors, if applicable) are considered to possess the basic qualifications for success in the professional and technical services of the contracts awarded to them. Therefore, the statutory and regulatory requirement for “fair opportunity to be considered” (based on the Federal Acquisition Streamlining Act (FASA) and Federal Acquisition… Continue reading “Fair-Opportunity-to-be-Considered” Rule

Cost-Reimbursement Contract

Cost-Reimbursement Contract: A contract that provides for the payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling, that the contractor may not exceed (except at its own risk) without the approval of the Contracting… Continue reading Cost-Reimbursement Contract

Cost-Plus-Fixed-Fee Contract

Cost-Plus-Fixed-Fee Contract: A cost-reimbursement contract that provides for payment to the contractor, of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract. This contract type… Continue reading Cost-Plus-Fixed-Fee Contract

Cost-Plus-Award-Fee Contract

Cost-Plus-Award-Fee Contract: A cost-reimbursement contract that provides for a fee consisting of a base amount (which may be zero) fixed at the inception of the contract, plus an award amount (based upon a judgmental evaluation by the Government) that is sufficient to provide motivation for excellence in contract performance.

Best Value

Best Value: The expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement. It involves the analysis of technical and cost proposals to determine which proposal offers the best trade-off between price/cost and performance, where quality is considered an integral performance factor.