D.C. Mun. Regs. r. 27-4712

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-4712 - FIXED-PRICE CONTRACTS

4712.1

Fixed-price contracts include several variants:

(a) Firm, fixed-price contracts;

(b) Fixed-price contracts with economic price adjustment; and

(c) Fixed-price incentive contracts.

4712.2

Unlike cost reimbursement contracts, any type of fixed-price contract obligates the contractor to complete the contractually-specified work for a fixed price.

4712.3

A firm fixed-price contract provides for a price that is not subject to adjustment, except in the event of a change to the contract work.

4712.4

A fixed-price contract with economic price adjustment provides for an upward or downward adjustment in the stated contract price based on changes in certain benchmarks specifically identified in the contract (for example, catalog prices or the producer price index for a particular commodity), subject to a ceiling on upward adjustments.

4712.5

A fixed-price incentive contract generally provides for establishing a final price by applying a formula based on the relationship between the total cost actually incurred by the contractor and a total target cost. A fixed price incentive contract results in the parties sharing in the cost savings or increases associated with differences between the actual and target cost. These contracts also can include incentive formulas based on the contractor's schedule or technical performance.

D.C. Mun. Regs. r. 27-4712

Notice of Emergency and Proposed Rulemaking published at 58 DCR 8805 (October 14, 2011)[EXPIRED]; as amended by Notice of Final Rulemaking published at 59 DCR 985, 996 (February 10, 2012)

Authority: The Interim Director of the Department of General Services (Department), pursuant to section 1106(a)(2) of the Procurement Practices Reform Act of 2010, effective April 8, 2011(D.C. Law 18-371; D.C. Official Code § 2-361.06(a)(2) )(2011 Repl.); sections 1025(a) and 1029 of the Department of General Services Establishment Act of 2011, effective September 14, 2011(D.C. Law 19-21; 58 DCR 6226); and Mayor's Order 2011-168, dated October 5, 2011.