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DFARS 216



Part 216-Types of Contracts

TABLE OF CONTENTS

SUBPART 216.1--SELECTING CONTRACT TYPES

216.104 Factors in selecting contract types.

216.104-70 Research and development.

SUBPART 216.2--FIXED-PRICE CONTRACTS

216.203 Fixed-price contracts with economic price adjustment.

216.203-4 Contract clauses.

216.203-4-70 Additional clauses.

SUBPART 216.3--COST-REIMBURSEMENT CONTRACTS

216.306 Cost-plus-fixed-fee- contracts.

SUBPART 216.4--INCENTIVE CONTRACTS

216.402 Application of predetermined, formula-type incentives.

216.402-2 Technical performance incentives.

216.403 Fixed-price incentive contracts.

216.403-2 Fixed-price incentive (successive targets) contracts.

216.404 Fixed-price contracts with award fees.

216.405 Cost-reimbursement incentive contracts.

216.405-1 Cost-plus-incentive-fee contracts.

216.405-2 Cost-plus-award-fee contracts.

216.470 Other applications of award fees.

SUBPART 216.5--INDEFINITE-DELIVERY CONTRACTS

216.501 General.

216.505 Ordering.

216.506 Solicitation provisions and contract clauses.

SUBPART 216.6--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER
CONTRACTS

216.603 Letter contracts.

216.603-3 Limitations.

216.603-4 Contract clauses.

SUBPART 216.7--AGREEMENTS

216.703 Basic ordering agreements.

SUBPART 216.1--SELECTING CONTRACT TYPES

216.104 Factors in selecting contract types.

216.104-70 Research and development.

SUBPART 216.2--FIXED-PRICE CONTRACTS

216.203 Fixed-price contracts with economic price adjustment.

216.203-4 Contract clauses.

Since there is no BLS published series currently available that relates directly to total prices of delivered DoD aircraft, ships, missiles, electronics, etc., it will be necessary to construct composite indices from major portions of the three series identified.

216.203-4-70 Additional clauses.

SUBPART 216.3--COST-REIMBURSEMENT CONTRACTS

216.306 Cost-plus-fixed-fee contracts.

SUBPART 216.4--INCENTIVE CONTRACTS

216.402 Application of predetermined, formula-type incentives.

216.402-2 Technical performance incentives.

Contractor performance incentives should relate to specific performance areas of milestones, such as delivery or test schedules, quality controls, maintenance requirements, and reliability standards.

216.403 Fixed-price incentive contracts.

216.403-2 Fixed-price incentive (successive targets) contracts.

216.404 Fixed-price contracts with award fees.

Award-fee provisions may be used in fixed-price contracts as provided in 216.470.

216.405 Cost-reimbursement incentive contracts.

216.405-1 Cost-plus-incentive-fee contracts.

216.405-2 Cost-plus-award-fee contracts.

216.470 Other applications of award fees.

The "award amount" portion of the fee may be used in other types of contracts under the following conditions-

TABLE 16-1, PERFORMANCE EVALUATION CRITERIA

   

Submarginal

Marginal

Good

Very Good

Excellent

A

Time of

Delivery.

(A-1)

Adherence to plan schedule.

Consistently late on 20% plans

Late on 10% plans w/o prior agreement

Occasional plan late w/o justification.

Meets plan schedule.

Delivers all plans on schedule & meets prod. Change requirements on schedule

 

(A-2)

Action on Anticipated delays.

Does not expose changes or resolve them as soon as recognized.

Exposes changes but is dilatory in resolution on plans.

Anticipates changes, advise Shipyard but misses completion of design plans 10%.

Keeps Yard posted on delays, resolves independently on plans.

Anticipates in good time, advises Ship-

yard, resolves independently and meets production requirements.

 

(A-3)

Plan Main-

tenance.

Does not com-

plete interre-

lated systems studies concurrently.

System studies completed but constr. Plan changes delayed.

Major work plans coordinated in time to meet production schedules.

Design changes from studies and interrelated plant issued in time to meet product schedules.

Design changes, studies resolved and test data issued ahead of production requirements.

B

Quality of Work.

(B-1)

Work Appearance.

25% dwgs. Not compatible with Shipyard repro. processes and use.

20% not compatible with Shipyard repro. processes and use.

10% not compatible with Shipyard repro. processes and use.

0% dwgs prepared by Des. Agent not compatible with Shipyard repro. processes and use.

0% dwgs. Presented incl. Des. Agent, vendors, subcontr. Not compatible with Shipyard repro processes and use.

 

(B-2)

Thoroughness and Accuracy of Work.

Is brief on plans tending to leave questionable situations for Shipyard to resolve.

Has followed guidance, type and standard dwgs.

Has followed guidance, type and standard dwgs. Questioning and resolving doubtful areas.

Work complete with notes and thorough explanations for anticipated questionable areas.

Work of highest caliber incorporating all pertinent data required including related activities.

 

(B-3)

Engineering Competence.

Tendency to follow past practice with no variation to meet reqmts. job in hand.

Adequate engrg. To use & adapt existing designs to suit job on hand for routine work.

Engineered to satisfy specs., guidance plans and material provided.

Displays excellent knowledge of constr. Reqmts. considering systems aspect, cost, shop capabilities and procurement problems.

Exceptional knowledge of Naval shipwork & adaptability to work process incorporating knowledge of future planning in Design.

B

Quality of Work (Cont'd)

(B-4)

Liaison Effectiveness

Indifferent to requirements of associated activities, related systems, and Shipyard advice.

Satisfactory but dependent on Shipyard of force resolution of problems without constructive recommen--dations to subcontr. or vendors.

Maintains normal contract with associated activities depending on Shipyard for problems requiring military resolution.

Maintains independent contact with all associated activities, keeping them informed to produce compatible design with little assistance for Yard.

Maintains expert contact, keeping Yard informed, obtaining info from equip, supplies w/o prompting of Shipyard.

 

(B-5)

Constant surveillance required to keep job from slipping-assign to low priority to satisfy needs.

Requires occasional prodding to stay on schedule & expects Shipyard resolution of most problems.

Normal interest and desire to provide workable plans with average assistance & direction by Shipyard.

Complete & accurate job. Free of incom-

patibilities with little or no direction by Shipyard.

Develops complete and accurate plans, seeks out problem areas and resolves with assoc. act. ahead of schedule.

C

Effective-ness in Control-

ling and/or Reducing Costs

(C-1)

Utilization of Personnel

Planning of work left to designers on drafting boards.

Supervision sets & reviews goals for designers.

System planning by supervisory, personnel, studies checked by engineers.

Design parameters established by system engineers & held in design plans.

Mods. to design plans limited to less than 5% as result lack engrg. System correlation.

 

(C-2)

Control Direct Charges (Except Labor)

Expenditures not controlled for services.

Expenditures reviewed occasionally by supervision.

Direct charges set & accounted for on each work package.

Provides services as part of normal design function w/o extra charges.

No cost overruns on original estimates absorbs service demands by Shipyard.

 

(C-3)

Performance to Cost Estimate

Does not meet cost estimate for original work or changes 30% time.

Does not meet cost estimate for original work or changes 20% time.

Exceeds original est. on change orders 10% time and meets original design costs.

Exceeds original est. on changing orders 5% time.

Never exceeds estimates of original package or change orders.

SUBPART 216.5--INDEFINITE-DELIVERY CONTRACTS

216.501 General.

216.505 Ordering.

Orders placed under indefinite-delivery contracts may be issued on DD Form 1155, Order for Supplies or Services.

216.506 Solicitation provisions and contract clauses.

SUBPART 216.6--TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

216.603 Letter contracts.

216.603-3 Limitations.

See Subpart 217.74 for additional limitations on the use of letter contracts.

216.603-4 Contract clauses.

SUBPART 216.7--AGREEMENTS

216.703 Basic ordering agreements.

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