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SOFARS PART 5616CONTRACT TYPES



SOFARS PART 5616 - TYPES OF CONTRACTS
(Revised June 2010)
SUBPART 5616.3 - COST-REIMBURSEMENT CONTRACTS
5616.307
Contract Clauses.
SUBPART 5616.4 INCENTIVE CONTRACTS
(Revised January 2011)

5616.403 Fixed-Price Incentive Contracts.
5616.406 Contract Clauses.
SUBPART 5616.5 - INDEFINITE DELIVERY CONTRACTS
(Revised July 2010)
5616.503 Requirements Contracts.
5616.504 Indefinite-quantity contracts.
5616.505-90 Orders under multiple award contracts.
5616.506 Solicitation Provisions and Contract Clauses.
SUBPART 5616.6 - TIME AND MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS
(Revised April 2008)
5616.601 Time and Material Contracts.
5616.601-90 Contract Clauses.
5616.603 Letter Contracts.
5616.603-3 Limitations.

SOFARS PART 5616
CONTRACT TYPES

 

SUBPART 5616.3 - COST-REIMBURSEMENT CONTRACTS

5616.307 Contract Clauses.
(Revised November 2007)
(j) Contracting officers shall insert a clause substantially the same as 5652.216-9000, Cost and Fixed Fee Information, in all cost plus fixed-fee type solicitations and contracts.
(k) Contracting officers may insert 5652.216-9002, Withholding of Fixed Fee or Incentive Fee, in cost-plus fixed fee or cost-plus incentive fee contracts where a reduced withholding percentage is negotiated in accordance with FAR 52.216-8, "Fixed Fee," or FAR 52.216-10, "Incentive Fee."
(l) Contracting officers shall insert a clause substantially the same as 5652.216-9005, Government Down Time for Various Reasons, including the President and the Secretary of Defense, in solicitations and contracts when award of a cost type contract is anticipated.

SUBPART 5616.4 – INCENTIVE CONTRACTS

5616.403 Fixed-Price Incentive Contracts.
(Added January 2011)
Contracting officers will give greater consideration to using Fixed-Price Incentive Firm Target (FPIF) contracts, particularly for efforts moving from development to production. Contracting officers will provide a justification for the contract type used for each proposed contract above $100 million for ACAT ID programs.
5616.406 Contract Clauses.
(Revised November 2007)
(f) Contracting officers may insert 5652.216-9002, Withholding of Fixed Fee or Incentive Fee, in cost-plus fixed fee or cost-plus incentive fee contracts where a reduced withholding percentage is negotiated in accordance with FAR 52.216-8, "Fixed Fee," or FAR 52.216-10, "Incentive Fee."

SUBPART 5616.5 - INDEFINITE DELIVERY CONTRACTS

(Added August 2008)
5616.503 Requirements Contracts.
A written Determination and Findings (D&F) approved by the Head of the Contracting Activity (HCA) is required prior to awarding any requirements contracts for HQ, USSOCOM, its components, or subordinate units. The D&F must address the significant benefits derived by the Government of awarding a requirements contract vice an indefinite quantity contract. The D&F must also address the enhanced competition for task and delivery order contract requirements provided in Section 843 of the National Defense Authorization Act for Fiscal Year 2008, as enacted by Public Law 110-181 (reference 23 May 2008 DPAP Memorandum)
5616.504 Indefinite-quantity contracts.
(Added June 2010)
(a) In accordance with DPAP Class Deviation 2010-O0007, dated March 24, 2010, the head of the agency is required to notify the congressional defense committees within 30 days after any determination under this section and to notify and provide a copy of the determination to the Deputy Director, Defense Procurement and Acquisition Policy (Contract Policy and International Contracting), OUSD(AT&L)/DPAP(CPIC), 3060 Defense Pentagon, Washington, DC 20301-3060. If the award concerns intelligence or intelligence-related activities of the DoD, notification shall also be provided to the Select Committee on Intelligence of the Senate or the Permanent Select Committee on Intelligence of the House of Representatives.
(b) The Senior Procurement Executive must authorize determinations made under FAR 16.504(c)(1)(ii)(D)(1)(iv).
(c) Coordinate all congressional announcements through the DOP/DDOP before being sent to public affairs in accordance with 5605.303(a)(iii)(A). An original signature is required for each committee chairperson and ranking member copy.
See DCG for Congressional Notification document templates.
5616.505 Ordering.
(Revised February 2007)
(a)


5616.505-90 Orders Under Multiple Award Contracts.
(Revised October 2010)
(a) In accordance with FAR 8.405-6(f), for proposed orders exceeding the micro-purchase threshold, but not exceeding the simplified acquisition threshold, the contracting officer shall document the circumstances when restricting consideration.
(b) If one of the exceptions to fair opportunity described at FAR 16.505(b)(2)(i) through (iv) applies to an order exceeding $150,000, a (J&A) must be completed in accordance with FAR 8.405-6. FOE J&As will be reviewed and approved in accordance with Attachment 5601-1.
The Fair Opportunity Exception (FOE) Limited Source J&A template can be found in the DCG.

5616.506 Solicitation Provisions and Contract Clauses.
(Revised February 2010)
(a) Contracting officers may insert a clause substantially the same as 5652.216-9001, Oral Orders – Indefinite Delivery Contracts, in contracts that will permit oral orders to be placed.
(b) Contracting officers shall insert a clause substantially the same as 5652.216-9003, Procedures for Issuing Task/Delivery Orders under Multiple Award, Indefinite Delivery-Indefinite Quantity Contracts, in multiple award, IDIQ contracts.

(a) Contracting officers may insert a clause substantially the same as 5652.216-9004, Procedures for Issuing Task/Delivery Orders under Single Award, Indefinite Delivery-Indefinite Quantity Contracts, in single award, IDIQ contracts.

SUBPART 5616.6 - TIME AND MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS

5616.601 Time and Material Contracts.
(Revised November 2010)
(b) In addition to the guidance found at FAR 16.601(d) for Time and Material (T&M) contracts, a formal Determination and Findings (D&F) is required when a contract contains a T&M CLIN.


5616.601-90 Contract Clauses.
(Revised November 2007)
Contracting officers shall insert a clause substantially the same as 5652.216-9005, Government Down Time for Various Reasons, including the President and the Secretary of Defense, in solicitations and contracts when award of a time and materials or labor-hour type contract is anticipated.
5616.603 Letter Contracts.


5616.603-3 Limitations.
Refer to Attachment 5601-1 for approval levels applicable to D&F requirements for letter contracts. Refer to DFARS 217.74 for additional limitations of the use of letter contracts.
 
HQ, United States Special Operations Command
Special Operations Research, Development, and Acquisition Center (SORDAC-K)
SOFARS 5616
February 2007

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