48 CFR Part 2116 — Types of Contracts

PART 2116—TYPES OF CONTRACTS Authority: 5 U.S.C. 8709; 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301. Source: 58 FR 40376, July 28, 1993, unless otherwise noted. Subpart 2116.1—Selecting Contract Types 2116.105 Solicitation provision. FAR 16.105 has no practical application because the statutory provisions of 5 U.S.C. chapter 87 obviate the issuance of solicitations. Subpart 2116.2—Fixed-Price Contracts 2116.270 FEGLI Program contracts. FEGLI Program contracts are fixed price with limited cost redetermination plus fixed fee. The premium paid to the Contractor is mutually agreed upon by OPM and the Contractor and is based on an estimate of benefits and administrative costs, plus the fixed service or risk charge, and is determined annually. Claims costs, including benefits and administrative expenses, in excess of premiums are paid up to the amount in the Employees' Life Insurance Fund. Payment for costs exceeding the amount in the Fund are the responsibility of the Contractor and reinsurers. The fee is fixed at the inception of each contract year. The fee does not vary with the actual costs but may be adjusted as a result of changes in the work to be performed under the contract. The fee is in the form of either a risk charge or a service charge. (a) Risk charge. (b) Service charge. [70 FR 41152, July 18, 2005] 2116.270-1 Contract clauses. (a) The clause at 2152.216-70 shall be inserted in all FEGLI Program contracts when a risk charge is negotiated. (b) The clause at 2152.216-71 shall be inserted in all FEGLI Program contracts when a service charge is negotiated.

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