FAR Companion Change

Back to FAR Companion

Summary

PART_17 updated: 43 lines added, 1 lines removed

Diff

--- previous
+++ current
@@ -1 +1,43 @@
-Part 17 - Special Contracting Methods ......................................................................................50+Part 17 - Special Contracting Methods
+FC 17.1 Multiyear contracting.
+When considering multiyear contracting, several benefits can be considered. These include
+lower costs, enhanced standardization, and reduced administrative burdens. Additionally,
+multiyear contracting can help maintain production continuity, avoiding annual startup and
+phaseout costs. It can also stabilize the contractor's workforce, reduce the need for new quality
+control techniques, and broaden the competitive base by attracting firms that may not be willing
+or able to compete for smaller quantities. Furthermore, multiyear contracting can provide
+incentives for contractors to improve productivity through investments in capital facilities,
+equipment, and advanced technology.
+50
+Federal Acquisition Regulation (FAR) Companion
+When determining the contracting method, the nature of the requirement should be the primary
+consideration, as multiyear contracting can be used with various methods, such as sealed
+bidding or negotiation. For fixed-price contracts, consider the longer performance period and
+adjust pricing accordingly, potentially incorporating economic price adjustment terms and profit
+objectives that reflect the contractor's risk and financing arrangements.
+FC 17.106 Strategic inclusion of “continuity of services” and “option to extend services”
+clauses.
+Contract awards for recurring and continuous service requirements are often delayed by factors
+outside the acquisition team's control, such as bid protests, disruptions to the incumbent
+contractor's business, or alleged bidding errors. To prevent difficult negotiations for short
+contract extensions, consider including FAR clauses 52.217-8, Options to Extend Services, and
+52.237-3, Continuity of Services, in solicitations and contracts for services where the services
+under the contract are vital and must be continued without interruption.
+Together, these clauses provide for up to six additional months of performance beyond the
+stated contract period for unforeseen delays; and up to 90 days for a smooth transition to the
+successor contractor or to the government.
+FC 17.201-1 Use of options.
+Solicitations containing option provisions typically state the basis of evaluation, either exclusive
+or inclusive of the option, and may inform offerors that the government anticipates exercising
+the option at the time of award. Permitting vendors to propose prices for additional quantities
+can enable them to provide their best pricing for these quantities. This approach can encourage
+competition by allowing flexible pricing for option quantities and provide vendors with the
+flexibility to meet their business needs and enables the contracting agency to gain a more
+accurate understanding of the total contract cost and make a more informed decision by
+evaluating offers based on total anticipated cost.
+When structuring option provisions, the contract's overall duration and quantity requirements are
+key considerations. For service contracts, the period in which an option may be exercised may
+extend beyond the contract completion date to accommodate situations where exercising the
+option would obligate funds not available in the fiscal year of contract completion. The duration
+of the basis and option periods can vary; but ensure you follow any statutory limitations on
+contract duration (for instance, under the Service Contract Labor Standards statute - see FAR