When contracting for services, the contracting officer-. (5) You need to ensure, Prior to certifying the Managing Accounting Billing Statement for contract payments by Governmentwide Commercial Purchase Card, the Approving/ Billing Official must do what two things? Government Contracting Rules You Need to Know | Wolters Kluwer This method may be used in sealed bidding or contracting by negotiation. (b) Since issuance of an authorization under 17.602(a) is deemed sufficient proof of compliance with paragraph (a) immediately above, nothing in paragraph (a) immediately above shall affect the validity or legality of such an authorization. (f) The Governments administrative costs of annual contracting may be used as a factor in the evaluation only if they can be reasonably established and are stated in the solicitation. (c) The contracting officer may exercise options only after determining that-. The primary goal of Step 1 is to establish a partnership mentality. This is necessary for situations when exercise of the option would result in the obligation of funds that are not available in the fiscal year in which the contract would otherwise be completed. (ii) Each agencys file shall include the interagency agreement between the requesting and servicing agency, and shall include sufficient documentation to ensure an adequate audit consistent with 4.801(b). (3) May use an economic price adjustment clause authorized by 16.203, when potential fluctuations require coverage and are not included in cost contingencies provided for by the clause at 52.222-43. The DoD reimburses the allowable incurred costs and pays a fixed amount that is negotiated at the beginning of the contract. some methods of contracting require more time than others All program years except the first are subject to cancellation. (a) Heads of agencies, with requisite statutory authority, may determine in writing to authorize contracting officers to enter into or renew any management and operating contract in accordance with the agencys statutory authority, or 41 U.S.C. A multi-year contract may provide that performance under the contract during the second and subsequent years of the contract is contingent upon the appropriation of funds, and (if it does so provide) may provide for a cancellation payment to be made to the contractor if appropriations are not made. This subpart prescribes policies and procedures for the use of option solicitation provisions and contract clauses. Cancellation charge means the amount of unrecovered costs which would have been recouped through amortization over the full term of the contract, including the term canceled. 3903 and 10 U.S.C. This method is most advantageous for relatively straightforward and small projects such as: renovations. For DoD, NASA, and the Coast Guard, the authorities cited in 17.101 do not apply to contracts for the purchase of supplies to which 40 U.S.C.759 applies (information resource management supply contracts). (b) An agency shall not use an interagency acquisition to circumvent conditions and limitations imposed on the use of funds.