Procurement contract types

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Procurement contract types

Limitations Time and Material Not possible at time of placing contract to estimate extent or duration of the work, or anticipated cost, with any degree of confidence.

Calls for provision of direct labor hours at specified hourly rate and material at cost or some other basis specified in contract. Ceiling price established at time of award. Engineering and design services in conjunction with the production of supplies, engineering design and manufacture of dies, jigs, fixture, gauges, and special machine tools; repair, maintenance and overhaul work to be performed in emergencies.

Used only after determination that no other type will serve purpose. Does not encourage effective cost control.

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Requires almost constant surveillance by Government to insure effective contractor management. Used only with negotiated procurements. Ceiling price required in contract.

Labor Hours A variant of time and materials contract differing only in that materials are not furnished by contractor. Often used in conjunction with other contract types.

Used only for services. Same as time and materials. Letter Contract Interest of national defense demands that contractor be given binding commitment so that work can commence immediately and not possible to negotiate definitive contract in sufficient time.

Contract includes dates by which parties expect definitized contract to be negotiated. Contract price contains ceiling price. Requires competition prior to award when such competition is practical. Manufacture of supplies and performance of services to include preproduction planning and procurement of necessary materials.

Gets contractor going quickly. Must have written determination that no other contract type is suitable. Must be superseded by definitized contract at earliest possible date. Maximum government liability until definitization. Indefinite Delivery The exact time of delivery is unknown at time of award and a known performance period.

There are three types of indefinite delivery contracts: Deliveries or performance at designated locations, upon order. Supplies regularly available, or after short lead time. Funds are obligated by each order and NOT by the contract.


Contract contains a minimum Government obligation and a stated maximum order quantity and thereafter by each order. Used when it is impossible to determine precise need and Government does not wish to commit itself for more than minimum quantity.

Procurement contract types

Commercial or modified commercial supplies or services when the need is recurring. Orders placed only after need materializes. Minimum stockage levels maintained. Direct shipment to users.Procurement by Noncompetitive Proposals — Sponsors are to conduct their procurement actions in a manner that assures fair and open competition.

Under certain circumstances, it is possible that a competitive procurement is not practical or feasible. Title 2 CFR § (f) allows for.

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Contract Document Search. Welcome to EPAV (Electronic Public Access Viewer)! Below are search fields which can be used to find contracts and contract related documents available from the Metropolitan Government.

Home>About Us>Procurement Procurement If you do not receive the system generated download or confirmation emails, please ensure that your spam filter is not . The Acquisition Program Area includes links to, and highlights from programs which enable agencies to meet these goals include: Environmentally Preferable Purchasing (EPP), Comprehensive Procurement Guidelines (CPG), ENERGY STAR®, the Green Procurement Program (GPP), and the Federal Energy Management Program (FEMP).

Procurement Analytics. Procurement and Contract Services processes approximately purchases orders per year. This does not include contracts, procurement card or various types of agreements. CIPS serves the procurement and supply profession. Dedicated to promoting good procurement practice, CIPS provides a wide range of procurement services for the benefit of members and the wider business community.

FAR -- Part 16 Types of Contracts