D.C. Mun. Regs. tit. 8, r. 8-B3023

Current through Register Vol. 71, No. 48, November 29, 2024

Rule 8-B3023 - OTHER TYPES OF CONTRACTS

3023.1

When the CCO determines that a contract other than a fixed price or fixed price with economic adjustment should be used, the CCO shall justify such use in writing. When any other type of contract is used, the CCO shall take steps to minimize cost overruns. All contracts shall include a specified price ceiling that the contractor shall not exceed.

3023.2

Nothing in this section shall be construed as limiting the CCO's discretion to choose any form of contract that is in the best interest of the University, including contracts combining elements of one or more of the contract types listed herein, provided that all contracts entered into by the University shall include a specified price ceiling that the contractor shall not exceed.

3023.3

Cost Reimbursement Contracts

(a) The CCO shall prefer the use of a cost-reimbursement contract when the requirement cannot be fully defined and costs cannot be estimated with sufficient accuracy to use any type of fixed-price contract.

(b) Cost reimbursement contracts shall only be used when (i) the contractor's accounting system is adequate for determining costs applicable to the contract, and (ii) there is reasonable assurance that the University will be able to apply effective monitoring and cost controls.

(c) The CCO may use a cost-plus-fixed-fee contract that provides for payment to the contractor of a negotiated fee in a fixed amount at the inception of the contract. The fixed fee does not vary with actual costs. The CCO shall not use a cost-plus-incentive fee or cost-plus-award fee type contract.

3023.4

Time and Materials Contracts

(a) The CCO shall prefer the use of a time and materials contract when it is not possible to estimate accurately the extent or duration of the work or the anticipated costs with any degree of confidence. The CCO shall ensure supervision of contractor performance when a time and materials contract is used.

(b) A time and materials contract shall include (i) direct labor hours at specified fixed hourly rates that include wages, overhead, general, administrative expenses, and profit, and (ii) materials required at cost.

3023.5

Labor Hours Contracts. The labor hours contract may be used in the same manner as a Time and Materials Contract when no materials are required.

3023.6

Letter Contracts

(a) The CCO shall use a letter contract when contract work must begin immediately and awarding a definitive contract is not immediately possible. The CCO shall ensure that each letter contract is as definitive and complete as possible under the circumstances.

(b) The CCO shall execute a definitive contract within ninety (90) days after the date of execution of the letter contract or before completion of fifty percent (50%) of the work to be performed, whichever occurs first. The liability of the University shall not exceed fifty percent (50%) of the estimated cost for the term of the definitive contract,unless approved in advance by the CCO.

3023.7

Multiple Award Contracts. The CCO may use a multiple award contract when more than one contractor is to be awarded a contract for specific supplies or services.

D.C. Mun. Regs. tit. 8, r. 8-B3023

Final Rulemaking published at 57 DCR 2630 (Mar. 2010)

Authority: D.C. Official Code § 38-1202.01 (2001 ed.)