(b) The contract may provide for a maximum price based on an assessment of the uncertainties associated with the service and its possible effects on costs. That maximum price should allow the contractor to assume an appropriate share of the risk and, once fixed, may only be adjusted by contractual terms providing for an appropriate or other adjustment to the market price in certain circumstances. (5) If the deliveries are standard deliveries, except for the requirements for preservation, packaging and packaging, the clause prescribed in 16.203-4(a) shall be used instead of this clause. (a) Description. A cost-plus fixed-price contract is a reimbursement contract that provides for the payment of negotiated fees to the contractor, which are determined at the beginning of the contract. Fixed fees do not vary based on actual costs, but may be adjusted due to changes in the work to be performed under the contract. This type of contract allows contracts to be entered into for efforts that might otherwise pose too high a risk to contractors, but provides the contractor with minimal incentive to control costs. (C) for reasons of economy and efficiency, the contract should be awarded on the basis of a single source, as this is a logical consequence of a contract already awarded under the contract, provided that all contracting entities have had a fair opportunity to be considered for the original contract; (a) products for which unit prices are fixed in the contract; or ► The meaning of authority (whether explicit, implicit or apparent) is that it binds the Company to the actions and acts of its representatives. The law will treat the representative and the corporation as one and the same thing when the representative acts within the limits of his powers. ► An insurer may be held liable to an insured for the unauthorized acts of its agent if the agency agreement is not clear as to the power granted.
(2) The term form describes the scope of the work in general and requires the contractor to devote a certain amount of effort for a certain period of time. According to this form, if the service is deemed satisfactory by the government, the fixed fee must be paid after the expiry of the agreed period, if the contractor declares that the expenses specified in the contract were spent on the performance of the contract work. The extension by other periods of service is a new acquisition, which is associated with new regulations on costs and fees. (E) consider the price or cost of each order as one of the factors in the selection decision; (ii) Protests against orders exceeding the thresholds set out in Section 16,505(a)(10)(i)(B) may only be filed with the Government Accountability Office in accordance with the procedures outlined in Section 33,104. 3. The expected costs of managing multiple contracts outweigh the expected benefits of multiple contracts. As mentioned above, an agent is a person authorized by an insurer to sell its goods and services on its behalf. The role of an agent includes the following tasks: Invitation to treatment: Offers are different from an invitation to treatment. An invitation to deal is not an offer. If you put your home up for sale, don`t make an offer. You make an offer of treatment.
They invite potential buyers to make you an offer to buy your home. The same goes for most ads. Stores make an offer of treatment. They express their willingness to sell you something if you offer them the asking price. However, you are not obliged to accept your offer. For example, placing an ad online to sell your car at a certain price. Someone offers to buy the car at full price. Should you accept their offer? No. You make an offer of treatment and are not obliged to accept their actual offer to buy your car. (5) Could contractors be encouraged to respond to potential contracts by promoting the exchange of information, for example: (c) predictable pricing periods can be designed in such a way as to be compatible with the operation of the contractor`s accounting system; and foreign life insurance operations (STOLI) are life insurance agreements in which investors convince individuals (usually seniors) to take out a new life insurance policy, with investors named as beneficiaries. This is sometimes referred to as Investor Origin Life Insurance (IOLI). These agreements are used to circumvent government laws on insurable interest.
Most policies have a Definitions section that defines the specific terms used in the policy. It can be a stand-alone section or part of another section. To understand the terms used in the policy, it is important to read this section. 2. Where a qualifying research and development contract with an educational institution or non-profit organisation is envisaged, which does not provide for a fee or other payment in excess of the costs and does not constitute a cost-sharing agreement, and the contractor determines that it is not necessary to withhold part of the eligible costs, the contractor uses the clause with his deputy I. A) Development of mediation procedures that provide a fair opportunity for each beneficiary, are taken into account for each contract and reflect the requirements and other aspects of the contractual environment; 16.202-1 Description. A fixed-price contract provides for a price that cannot be adjusted based on the contractor`s experience with costs in performing the contract. This type of contract imposes maximum risk and full liability on the contractor for all costs and resulting profits or losses. It provides an incentive for the contractor to control costs and provide efficient services and imposes a minimum administrative burden on the contracting parties.
The contractor may use a fixed-price contract in conjunction with a fee incentive (see 16.404) and performance or supply incentives (see 16.402-2 and 16.402-3) if the surcharge or incentive is based solely on factors other than cost. The type of contract remains at a fixed price when used with these incentives. 16.202-2 Application. However, an indemnity contract is a contract that pays an amount equal to the loss. Indemnity contracts attempt to return the insured to his or her original financial situation. Fire insurance and health insurance are examples of compensation contracts. An insured with $50,000 in fire insurance and a $5,000 loss due to fire can collect up to $5,000 instead of $50,000. Question 13: Insurable interest does NOT appear in which of the following relationships? (b) the supplier`s accounting system is appropriate for setting the price; (3) The contracting authority shall not make a definitive commitment or authorize the contractor to commence performance of a contract under a basic contract until prices have been fixed, unless the contract sets a maximum price that limits the Government`s obligation, and (ii) the contractor may exercise wide discretion in the development of appropriate procurement procedures. The contracting authority should minimise the requirements for tendering. Contracting officers may apply streamlined procedures, including oral presentations.
If the contract does not exceed the simplified collection threshold, the contractor shall not be required to contact each of the multiple contractors before selecting a contractor if the procuring entity has information to ensure that each contractor has a fair opportunity to be considered for each contract. The contest provisions of Part 6 and the guidelines in section 15.3 do not apply to the ordering process. However, the contractor must: 16,405-1 contracts at cost plus incentive fees. (a) Description. The Incentive Fee Plus Agreement is a reimbursement arrangement that provides that originally negotiated fees are subsequently adjusted using a formula based on the ratio of the total eligible cost to the total target cost. This type of contract specifies the target cost, target costs, minimum and maximum fees, and a fee adjustment formula. After the performance of the contract, the fee to be paid to the holder shall be determined according to the formula. The formula provides for fee increases beyond the target fee if the total eligible cost is below the target cost and a fee reduction below the target rate if the total eligible cost exceeds the target cost. This increase or decrease is intended to encourage the contractor to effectively manage the contract. If the total eligible cost is above or below the cost range within which the fee adjustment formula applies, the Contractor will receive the total eligible cost plus the minimum or maximum fees. (b) Application.
(1) A cost-plus incentive fee arrangement is appropriate for development and testing services or programs if: (i) a reimbursement agreement is required (see 16.301-2); and (ii) target costs and a fee adjustment formula can be negotiated to motivate the contractor to manage effectively. (2) The contract may include technical performance incentives if it is highly likely that the necessary development of a larger system is feasible and if the government has set its performance targets, at least in general terms.