Contracting

1

Please respond two both post. 100 words each

1st post

Enrique Velez Cortes

Hello Class,

To start off I want to say that I actually enjoyed the way we used the flashcards. I find it better to learn something and having a "where to find it" since in the real world we are able to use references rather than memorizing everything. Many things were touched in the flashcards. Starting with the different types of contracts, which include firm-fixed-price, cost-reimbursement, time and material, and incentive contracts. Just like any other thing, each of these have their purpose, advantages and disadvantages. Essentially, Part 16 of the FAR is a guide for the contracting officers on which contracts are used for each circumstance.

Firm-fixed-price contracts is when the price is fixed at the time of award and is not subject to adjustment, unless there are certain pre-agreed-upon changes or adjustments allowed by the contract.  Cost-reimbursement contracts provide for payment of the contractor's allowable costs.  Time and material contracts are used for payment based on the contractor's hourly rate and the cost of materials. Lastly,  incentive contracts allow for adjustments to the contract price based on the contractor's performance against specific metrics.

2nd Post:

David Robinson

Good day class,

From my understanding of the FAR part 16 from the Quizlet and also from the FAR link, it is clear that contracts are the best way to secure an entity to their services provided. Most government contracts operate on a firm fixed price simply because this gives them less liability for any derailments of the process. They are able to do these types of contracts because of the exposure a company can receive just by saying that they have government contracts. Although the price may not be as profitable for the actual contractors, and they know that they will assume all excess costs if the work that they promised occurs other costs, the benefit of more contracts with the government holds more weight.

More firm contracts that cleary state intentions based on the the FAR are the fixed-contract with award fee and the fixed incentive fee. With these contracts both parties involved has an understanding of outcomes based on if the contracts are completed by this standard or this time then this award is given or an incintve is given based on other parameters. Through the firm contracts materials needed are discussed and as well as the time that will be alloted in order to finish the contract. Any exxecs that is not discussed by the contractor does not fall on the recipient after the negotitaions have been concluded and the contracts are s=signed and agreed upon byt both parties. Doing this allows all of the risk to be on the contractor and not the entity that is requiring the service.

Reference:

https://www.acquisition.gov/far/subpart-16.1