D.C. Mun. Regs. r. 50-5099

Current through Register Vol. 71, No. 24, June 14, 2024
Rule 50-5099 - DEFINITIONS
5099 . 1 When used in this chapter, the following terms have the meanings ascribed:

Accepted or Acceptance - the act of an authorized representative of the District by which the District, for itself or as agent of another, assumes ownership of existing identified goods tendered or approves specific services rendered or construction completed as partial or complete performance of the contract.

Actual costs - amounts determined on the basis of costs incurred, as distinguished from forecasted costs. Actual costs include standard costs properly adjusted for applicable variances.

Adequate evidence - information sufficient to support the reasonable belief that a particular act or omission has occurred.

Amendment - any change to a solicitation issued by the contracting officer.

Attorney General - the agency head of the Office of the Attorney General (OAG) for the District of Columbia.

Change order - a written order signed by the contracting officer directing the contractor to make a change that the contracting officer is authorized to order without the contractor's consent pursuant to the contract.

Claim - a written demand or written assertion by the District or a contractor seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract.

Prohibited contingent fee - any commission, percentage, brokerage, or other fee that is dependent upon or tied to the success that a person or concern has in securing a District contract.

Contingency fee contract - a contract for legal services in which payment by the District is based on, and limited to, a percentage of revenue, if any, recovered by the District.

Contract - a mutually binding agreement between the District and a contractor, which must be in writing unless otherwise authorized by the Act, including agreements in which a party other than the District is obligated to pay the contractor.

Contract modification - any written change in the terms of a contract.

Cooperative purchasing agreement - an agreement between a vendor and one or more government agencies that allows other government agencies to purchase goods and services under it.

Cost - the amount paid or charged for something. Cost does not include the contractor's profit.

Cost-no-fee contract - a cost-reimbursement contract in which the contractor receives no fee.

Cost-plus-award-fee contract - a cost-reimbursement type contract that provides for a fee consisting of an amount fixed at the beginning of the contract and potential award of additional fee amounts based upon a judgmental evaluation by the contracting officer, sufficient to provide motivation for excellence in contract performance.

Cost-plus-fixed-fee contract - a cost-reimbursement type contract that provides for the payment of a fixed fee to the contractor. The fixed fee, once negotiated, does not vary with actual cost, but may be adjusted as a result of any subsequent changes in the work or services to be performed under the contract.

Cost-plus-incentive-fee contract - a cost-reimbursement type contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. After performance of the contract, the fee payable to the contractor is determined in accordance with a negotiated formula.

Cost-reimbursement contract - a contract that provides for payment of allowable costs incurred in the performance of a contract, to the extent prescribed in the contract. This type of contract establishes an estimate of total cost for the purpose of obligating funds and establishes a ceiling that the contractor may not exceed (except at its own risk) without prior approval of, or subsequent ratification by, the contracting officer.

Definitive contract - the contract executed pursuant to letter contract commitment.

District of Columbia Supply Schedule - indefinite quantity contracts made with more than one (1) CBE supplier for comparable goods and services at varying prices.

Expert - a person with excellent qualifications and a high degree of attainment in a professional, scientific, technical, or other field, whose knowledge and mastery of the principles, practices, problems, methods, and techniques of his or her field or activity, or of a specialized area in the field, are clearly superior to those usually possessed by ordinarily competent persons in that activity, and whose attainment is such that he or she usually is regarded as an authority or as a practitioner of unusual competence and skill by other persons in the profession, occupation, or activity.

Firm-fixed-price contract - a fixed-price contract that provides for a price that is not subject to any adjustment of the basis of the contractor's cost experience in performing the contract. This type of contract places maximum risk and full responsibility for all costs and resulting profit or loss upon the contractor and provides maximum incentive for the contractor to control costs and perform effectively.

Fixed-price contract with economic price adjustment - a fixed-price contract that provides for the upward and downward revision of the stated contract price upon the occurrence of certain contingencies that are specifically defined in the contract.

Incentive contract - a fixed-price or cost-reimbursement type contract that provides for relating the amount of profit or fee payable under the contract with the contractor's performance in order to obtain specific procurement objectives.

Indefinite-quantity contract - a contract that provides for an indefinite quantity, within written stated limits, of specific goods or services to be furnished during a fixed period, with deliveries to be scheduled by placing orders with the contractor. The contract requires the District to order and the contractor to furnish at least a stated minimum of goods or services.

Inspection - examining and testing goods, services, or construction to determine whether they conform to contract requirements. This includes, when appropriate, examination and testing of raw materials, components, and intermediate assemblies.

Labor-hour contract - a contract that is a variant of the time-and-materials type contract differing only in that materials are not supplied by the contractor.

Legal services - Work performed by an attorney or experts or legal support personnel under the supervision of an attorney on behalf of a client, involving law-related matters including, but not limited to:

1) issuing advice or opinions in general or to prepare for or prevent litigation; 2) filing, pleading, and defending present or anticipated administrative, civil, or criminal claims; or 3) mediating, arbitrating, or any other pre or post trial negotiating or alternative dispute resolutions.

Letter contract - a written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing or delivering goods or performing services. A letter contract is always associated with a definitive contract, and a letter contract by itself cannot be the sole document used for a complete procurement.

Market survey - a testing of the marketplace to ascertain whether qualified sources capable of satisfying the District's requirement exist. It may range from written or telephone contacts with knowledgeable experts regarding similar or duplicate requirements, and the results of any market test recently undertaken, to the more formal sources-sought announcements in pertinent publications (such as technical or scientific journals) or solicitations for information or planning purposes.

Maximum liability - the amount, not to exceed fifty percent (50%) of the overall contract price ceiling, obligated by the letter contract over which the District cannot be liable if the letter contract is terminated.

Multiyear contract - as used in this chapter, a contract for a base period longer than twelve (12) months.

Nonrecurring costs - those production costs that are generally incurred on a one-time basis and include costs such as plant or equipment relocation, plant rearrangement, pre-production engineering, initial spoilage and rework, and specialized workforce training.

Option - a unilateral right in a contract under which, for a specified time, the District may elect to extend the term of a contract.

Person - any business entity, individual, union, committee, club, or other organization or group of individuals.

Pre-solicitation - prior to the transmittal by the District of any proposed contract documents to the proposed contractor before the issuance of a solicitation or in a proposed sole source procurement.

Price - the amount the District anticipates it will pay the contractor for full performance under the terms of a contract, including costs and profit.

Price ceiling - an amount established during negotiations or at the discretion of the contracting officer that constitutes the maximum amount that may be paid to the contractor for performance of a contract.

Procurement planning - the process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling agency needs in a timely manner and at a reasonable cost. It includes developing the overall strategy for managing the acquisition.

Recurring costs - the production costs that vary with the quantity being produced, such as labor and materials.

Requirements contract- a contract that provides for the filling of all actual purchase requirements of designated District agencies for specific goods or services during a specified contract period, with deliveries to be scheduled by placing orders with the contractor as needs arise.

Settlement proposal - a proposal for effecting settlement of a contract terminated, in whole or in part, submitted by a contractor or subcontractor.

Subcontractor - any supplier, distributor, vendor, or firm who furnishes goods, services, or construction to or for a prime contractor or another subcontractor.

Supplemental agreement - a bilateral contract modification.

Term contract - a requirements contract or an indefinite-quantity contract.

Termination for default - the exercise of the District's contractual right to terminate, completely or partially, a contract because of the contractor's actual or anticipated failure to perform its contractual obligations.

Testing - the element of inspection that determines the properties or elements, including functional operation of goods or their components by the application of established scientific principles and procedures.

Time-and-materials contract - a type of contract that provides for the procurement of goods or services on the basis of direct labor hours at specified fixed hourly rates (which include wages, overhead, general and administrative expenses, and profit) and material at cost.

D.C. Mun. Regs. r. 50-5099

Final Rulemaking published at 65 DCR 4406 (4/20/2018); amended by Final Rulemaking published at 68 DCR 11740 (11/5/2021)