Institutional Framework of Federal Acquisitions

Institutional Framework of Federal Acquisitions
The fixed price contract is a vital element in creating effective, efficient, and accountable acquisition planning. Fixed pricing is typically used when the product or service being purchased is fairly easy to determine a fair market value. For example, a fixed price contract might be used to purchase office equipment because the price structure isn’t subject to much fluctuation. It also is efficient because it cuts out some of the administrative burden that is placed on the relevant parties (U.S. Government, N.d.). However, when the deal is subject to price fluctuations there are also economic price adjustments that can be added to account for these differences.
Cost reimbursement contracts also serve and important role in creating effective, efficient, and accountable acquisition planning. A cost contract is a cost-reimbursement contract in which the contractor receives no fee and therefore there is no need to worry about profitability in the contract (U.S. Government, N.d.). These are useful when a non-profit organization is providing some good or service. Under this type of contract the organization is free to provide their goods or services without having to obtain any further verification up to a certain monetary limit.
The time and materials contracts are useful when labor is involved in providing some service and it is difficult to estimate exactly how much labor will be required. For example, when building a road there estimate for total labor might include an estimate of anywhere between one year and two years with a wide range of possible labor costs. Instead of having the contractor bid the project for the highest possible costs that they might incur, it is useful to just pay them for the actual time that they worked on the project by logging their labor hours and basing the contract on this aspect of the project.
Cost-plus contracts are another useful way of managing government procurement and are somewhat similar to time and materials contracts. As opposed to logging labor times, cost-plus contracts can focus on the actual cost a contractor pays and then provide a profit based on a rate that can be figured as a percentage of the total cost. Or a cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract (U.S. Government, N.d.).
Each of the four different types of contracts is useful in a range of various situations and none of them are ideal for use in all applications. It is necessary for the situation to dictate the type of contract that is selected rather than a single type of contract is altered for different situations. The type and structure of the contract is one of the most useful tools that can ensure that effective, efficient, and accountable acquisition planning is maintained during procurement.
Works Cited
U.S. Government. (N.d.). Subpart 16.2 — Fixed-Price Contracts. Retrieved from FAR: https://www.acquisition.gov/far/html/Subpart 16_2.html
U.S. Government. (N.d.). Subpart 16.3 — Cost-Reimbursement Contracts. Retrieved from FAR: https://www.acquisition.gov/far/html/Subpart 16_3.html
U.S. Government. (N.d.). Subpart 16.3 — Cost-Reimbursement Contracts. Retrieved from FAR: https://www.acquisition.gov/far/html/Subpart 16_3.html

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 3234125597

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code HAPPY