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PART 5316 -
Types of Contracts

2019 Edition

Revised: 26 Jul 21

Table of Contents

SUBPART 5316.1 — SELECTING CONTRACT TYPES 1

5316.102 Policies 2

5316.103 Negotiating Contract Type 2

5316.104 Factors in Selecting Contract Types 2

SUBPART 5316.203 — FIXED-PRICE CONTRACTS WITH ECONOMIC PRICE ADJUSTMENT 2

5316.203-4 Contract Clauses 2

SUBPART 5316.206 — FIXED-CEILING-PRICE CONTRACTS WITH RETROACTIVE PRICE REDETERMINATION 2

5316.206-3 Limitations 2

SUBPART 5316.3 — COST-REIMBURSEMENT CONTRACTS 2

5316.301-3 Limitations 2

SUBPART 5316.4 — INCENTIVE CONTRACTS 2

5316.401 General 2

5316.404 Fixed-Price Contracts with Award Fees 3

5316.405-2 Cost-Plus-Award-Fee Contracts 3

SUBPART 5316.5 — INDEFINITE-DELIVERY CONTRACTS 3

5316.503 Requirements Contracts 3

5316.504 Indefinite-Quantity Contracts 3

5316.505 Ordering 4

5316.505-90 Decentralized Ordering 4

SUBPART 5316.6 — TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS 5

5316.601(d) Limitations 5

5316.603-2 Application 5

5316.603-3 Limitations 5

SUBPART 5316.1 — SELECTING CONTRACT TYPES

See AF PGI 5316.101.

5316.102 Policies

5316.103 Negotiating Contract Type

(d) See the tailorable Determination and Findings template.

5316.104 Factors in Selecting Contract Types

See AF PGI 5316.104.

SUBPART 5316.203 — FIXED-PRICE CONTRACTS WITH ECONOMIC PRICE ADJUSTMENT

5316.203-4 Contract Clauses

See AF PGI 5316.203-4.

SUBPART 5316.206 — FIXED-CEILING-PRICE CONTRACTS WITH RETROACTIVE PRICE REDETERMINATION

5316.206-3 Limitations

(d) Submit requests through the SCO to SAF/AQC for HCA approval (See MP5301.601(a)(i)).

SUBPART 5316.3 — COST-REIMBURSEMENT CONTRACTS

5316.301-3 Limitations

(2) See MP5301.601(a)(i).

SUBPART 5316.4 — INCENTIVE CONTRACTS

5316.401 General

(d)(i) See MP5301.601(a)(i). Forward a copy of the award fee D&F to SAF/AQC when the conditions at DFARS PGI 216.401(e)(iii) apply.

(d)(ii) See MP5301.601(a)(i). Forward a copy of the cost-reimbursement award fee D&F to

SAF/AQC when the conditions at DFARS PGI 216.401(e)(iii) apply.

(e)(3)(i) See MP5301.601(a)(i).

See AF PGI 5316.401-90.

See SMC PGI 5316.401-90.

5316.404 Fixed-Price Contracts with Award Fees

See 5316.401(e)(3)(i) above.

5316.405-2 Cost-Plus-Award-Fee Contracts

(1) Award-fee pool. Submit requests through the SCO to SAF/AQC for HCA approval (see MP5301.601(a)(i)).

See SMC PGI 5316.405-2-90.

SUBPART 5316.5 — INDEFINITE-DELIVERY CONTRACTS

5316.503 Requirements Contracts

(b)(2) Determinations for requirements contracts in an amount estimated to exceed $112M (including all options) must be approved in accordance with 5316.504(c)(1)(ii)(D).

5316.504 Indefinite-Quantity Contracts

(a) Description.

(2) Upon execution of the contract, an obligation shall be recorded based upon the issuance of a delivery or task order for the cost/price of the minimum quantity specified. The Government’s actual obligation must be recorded at the time of contract award. (See DoD 7000.14-R, Volume 3, Chapter 8, paragraph 080604)

(c)(1)(ii)(D) Limitation on single award contracts.

(1) The SCO has the authority to make the written determination required by FAR 16.504(c)(1)(ii)(D)(1). Provide a copy of the written determination to SAF/AQCP.

(c)(2)(i)(A) See MP5301.601-90.

(c)(2)(i)(B) See MP5301.601-90.

(c)(2)(ii) See MP5301.601-90.

5316.505 Ordering

(b) Orders under multiple award contracts.

(1) Fair opportunity.

(ii) The contracting officer must use streamlined ordering procedures. SCOs must justify the use of FAR Subpart 15.3 Source Selection Procedures for any contract or task/delivery order, regardless of dollar value made in accordance with FAR 16.505. The SCO must submit justifications to SAF/AQC before proceeding with the source selection and/or Clearance session.

(2) Exceptions to the fair opportunity process. See 5306.304(a) for the approving officials for a proposed task or delivery order using the fair opportunity exceptions at FAR 16.505(b)(2). See the tailorable Justification for an Exception to Fair Opportunity template. For exceptions to fair opportunity that are intended for purposes of awarding a “Bridge Action” see 5306.303-90.

See AF PGI 5316.505.

See SMC PGI 5316.505.

(8) Task-order and delivery-order ombudsman. See 5301.91.

5316.505-90 Decentralized Ordering

For contracts that authorize decentralized ordering (i.e., ordering by a contracting office at any other location), the contracting officer with overall responsibility for the contract must:

(a) Ensure that adequate control procedures are in place before any orders are authorized; and

(b) Exercise oversight of decentralized ordering throughout the period of performance under the contract to ensure that the procedures are followed.

See SMC PGI 5316.505-90.

See AF PGI 5316.506.

SUBPART 5316.6 — TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

5316.601(d) Limitations

(i)(A)(1)(i) For contracts (including indefinite-delivery contracts) and orders in which the portion of the requirement performed on a time-and-materials or labor-hour basis exceeds $10 million, the approval authority for the determination and findings shall be the senior contracting official within the contracting activity. This authority may not be delegated.

(ii) For contracts (including indefinite-delivery contracts) and orders in which the portion of the requirement performed on a time-and-materials or labor-hour basis is less than or equal to $10 million, the determination and findings shall be approved one level above the contracting officer.

(i)(A)(2) The SCO approved D&F and a copy of this class deviation shall be included in the contract file. Submit the D&F required pursuant to DFARS 216.601(d)(i)(A)(2) through the SCO to SAF/AQC for approval. See MP5301.601(a)(i).

(3) See MP5301.601(a)(i).

5316.603-2 Application

(c)(3) See MP5301.601(a)(i).

5316.603-3 Limitations

See MP5301.601(a)(i).

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