48 CFR Part 3416 — Types of Contracts

PART 3416—TYPES OF CONTRACTS Authority: 5 U.S.C. 301 and 20 U.S.C. 1018a. Source: 88 FR 60542, Sept. 1, 2023, unless otherwise noted. Subpart 3416.3—Cost-Reimbursement Contracts 3416.303 Cost-sharing contracts. (b) Application. 3416.307 Contract clauses. (a) If the clause at FAR 52.216-7 (Allowable Cost and Payment) is used in a contract with a hospital, the contracting officer must modify the clause by deleting the words “Federal Acquisition Regulation (FAR) subpart 31.2” from paragraph (a)(1) and substituting “45 CFR part 75, appendix IX.” (b) The contracting officer must insert the clause at 3452.216-70 (Additional cost principles) in all solicitations of and resultant cost-reimbursement contracts with nonprofit organizations other than educational institutions, hospitals, or organizations listed in 2 CFR part 200, subpart E. Subpart 3416.4—Incentive Contracts 3416.402 Application of predetermined, formula-type incentives. 3416.402-2 Performance incentives. (b) Award-term contracting may be used for performance-based contracts or task orders. See 3416.470 for the definition of award-term contracting 3416.470 Award-term contracting. (a) Definition. (b) Applicability. (c) Approvals. (d) Disputes. (e) Award-term limitations. (2) Award-term periods may not exceed twelve months. (3) The potential award-term periods will be priced, evaluated, and considered in the initial contract selection process. (f) Implementation of extensions or reduced contract terms. (2) The extension or reduction of the contract term is affected by a bilateral contract modification. (3) Award-term periods occur after the period for which the award term was granted. Award-term periods effectively move option periods to later contract performance periods. (4) Contractors have the right to decline the award of an award-term period. A contractor loses its ability to earn additional award terms if an earned Award-Term Period is declined. (5) Changes to the contract award-term plan must be mutually agreed upon. (g) Clause. Subpart 3416.5—Indefinite-Delivery Contracts 3416.505 Ordering. (b)(8) Task order and delivery-order ombudsman. Subpart 3416.6—Time-and-Materials, Labor-Hour, and Letter Contracts 3416.603 Letter contracts. 3416.603-3 Limitations. If the HCA is to sign a letter contract as the contracting officer, the SPE signs the written determination under FAR 16.603-3.

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