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OCR for page 25
The Decision Model 25 Step 8--Define Contract Scope and Terms and Conditions START Use The final step in the Decision Model involves the selection of the terms and conditions to be outsourc- ing included in the contract. As with Step 6, you'll want to do this step in close collaboration with your process (procure- agency's procurement personnel. Although some terms and conditions are required for all types ment package of contracts, others are only suitable for certain types of contracts (i.e., commodity supplier, low 6 or 7) bid with design consultant, systems manager, and design-build contractor). The following list of STEP 1 INITIAL DECISIONS mandatory contract terms and conditions should be considered regardless of procurement pack- Use Other age used: consulting services process being (procure- · Parties to the contract ment procured. Not package · Scope of the contract 5) covered by this · Compensation and method of payment Model. · Extras STEP 2 WORK Yes · Assignment of claims DISTRIBUTION Send · Agency-furnished property individual projects · Order of precedence through the · Commercial warranty Decision Model. · Patent rights · Multi-year contracts contingent upon appropriations No · Termination for default · Termination for convenience STEP 3 STEP 4 DEFINE PROJECT DETERMINE · Execution and commencement of work CATEGORY(IES) AGENCY CAPABILITY LEVEL · Delays and extensions of time · Modifications STEP 5 SELECT APPLICABLE · Multiple contract awards SYSTEMS ENGINEERING · Liquidated damages PROCESS(ES) & CANDIDATE · Variations in estimated quantities PROCUREMENT PACKAGE(S) · Suspension of work · Incorporation by reference STEP 6 · Specifications APPLY DIFFERENTIATORS · Delivery and acceptance Schedule Constraints · Intellectual property STEP 7 · Contractor's invoices PACKAGE · ASSESSMENT Conflicting terms AND FINAL SELECTIONS Table 5 identifies terms and conditions that are most appropriate to specific procurement packages. The section following Table 5 provides definitions for all of the terms and conditions STEP 8 DEFINE CONTRACT in both the above list and Table 5. SCOPE AND TERMS & CONDITIONS Your agency is likely to have standard sets of terms and conditions that are to be incorporated in the request for proposals and resulting contract. In the ITS is not explic- END unlikely event that standard terms and conditions are not available within your itly referenced in the FAR. Relevant agency, or if you are looking for guidance on a specific term and condition not information can be typically used by your agency, the Federal Acquisition Regulations (FAR) is a found in sections good source of information. The FAR, which governs the majority of federal referencing IT. procurements, includes language for myriad terms and conditions including those appropriate to ITS projects.
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26 Guide to Contracting ITS Projects Table 5. Procurement packages and their associated terms and conditions. Procurement Package Terms and Conditions Commodity Supplier Contractor Inspection Requirements Definite Quantity Inspection of Supplies Indefinite Quantity Option for Increased Quantity Brand Name of Equal Ordering Performance/Payment Bond Low-Bid Contractor Design within Funding Limitation Fixed Price with Design Consultant Redesign Responsibility for Design Errors Incentive Fee or Deficiencies Performance/Payment Bond Deficiencies Systems Manager Negotiation Specifications Commercial Computer Software Restricted Delays and Extensions of Time Rights Modifications Fixed Fee Delivery and Acceptance Incentive Fee Conflicting Terms Rights in Data Patent Infringement Indemnification Allowable Costs and Payment Federal Grant Flow-Down Provisions Performance-Based Payments Performance/Payment Bond Delivery Orders (Task Orders) Design-Build Negotiation Fixed Fee Contractor with Design within Funding Limitations Incentive Fee Design Consultant Redesign Responsibility for Design Errors Execution and Commencement of Work Work Oversight Performance/Payment Bond Suspension of Work Specifications and Drawings Consultant Negotiation Specifications Notice of Cost Comparison Delays and Extensions of Time Allowable Costs and Payment Modifications Fixed Fee Delivery and Acceptance Incentive Fee Disputes Performance-Based Payments Retention of Records Deliver Orders (Task Orders) Indemnification Outsourcing Agency Negotiation Performance/Payment Bond Activity Fixed Fee Allowable Costs and Payment Incentive Fee Performance-Based Payments Work Oversight Modifications Execution and Commencement of Work Rights in Data Outsourcing Agency Negotiation Performance/Payment Bond Function Fixed Fee Allowable Costs and Payment Incentive Fee Modifications Work Oversight Rights in Data Execution and Commencement of Work