Section 22-B9599. DEFINITIONS

 

9599.1The following terms as used in this chapter and Chapters 96, 97, and 98 shall have the meanings ascribed:

 

Allocable costs - a cost is considered allocable if the goods or services involved are chargeable or assignable to a particular cost objective (e.g., a specific function, project, or department) in accordance with relative benefits received or other equitable relationship.

 

Allowable costs - a cost is considered allowable if the charge is reasonable and allocable, given consistent treatment through application of generally accepted accounting principals, and conforms to the terms and conditions set forth in the contract.

 

Amendment - any change to a solicitation issued by the contracting officer.

 

Bid bond - a bid security in the form of a bond.

 

Bid security - a form of guarantee assuring that the bidder or offeror will not withdraw a bid or proposal within the period specified for acceptance and will execute a written contract and furnish required bonds or other security, including any necessary coinsurance or reinsurance agreements, within the time specified in the solicitation, unless a longer time is allowed, after receipt of the specified forms.

 

Bidder/Offeror - an individual, corporation, hospital, or other business entity which submits a bid or proposal to provide goods or services to the Hospital for a stated price in response to a procurement solicitation issued by the Hospital.

 

Bilateral contract modification - a contract modification that is signed by the contractor and the contracting officer.

 

Competitive range - range determined on the basis of cost or price and other factor that were stated in the solicitation and shall include all proposals that have a reasonable chance of being selected for award.

 

Competitive sealed bidding (CSB) - the solicitation vehicle for the procurement of supplies, equipment, services, or construction. The CSB method is used when the award can be made on the basis of specifications and price-related factors and it is not necessary to conduct discussions with bidders after bid opening. No alterations in the bid, including price, may be made after bid opening.

 

Competitive sealed proposals (CSP) - the solicitation vehicle for the procurement of goods or services when the CSP method is not appropriate. The CSP method is used when discussions with competing offerors and judgmental evaluations of offers are in the best interest of the Hospital. Alterations in the nature of a proposal to further clarify, and in prices, may be made after proposals are opened.

 

Contract Award - a documented and executed legal agreement between the Hospital and a contractor by which specific goods, supplies, equipment, and services are procured for a stated price, under specified terms and conditions.

 

Contracting Officer (CO) - an employee of the Hospital officially designated as a “contracting officer” and so authorized to enter into contract agreements with outside parties and sign purchase orders and other contract related documents on behalf of D.C. General Hospital. No other Hospital employee is authorized to do so.

 

Cost analysis - the review and evaluation of the separate cost elements and proposed profit of an offeror’s or contractor’s cost or pricing data and the judgmental factors applied in projecting from the data to the estimated costs, in order to form an opinion on the degree to which the proposed costs represent what the contract should cost, assuming reasonable economy and efficiency.

 

Cost or pricing data - all facts as of the time or price agreement that prudent buyers and sellers would reasonably expect to significantly affect price negotiations. Cost or pricing data is factual, not judgmental, and is therefore verifiable. While it does not indicate the accuracy of the prospective contractor’s judgment about estimated future costs or projections, it does include the data forming the basis for that judgment. Cost or pricing data is more than historical accounting data; it is all the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred. It also includes facts such as vendor quotations; nonrecurring costs; information on changes in production methods or purchasing volume; data supporting projections of business prospects and objectives and related operational costs; and unit cost trends, such as those associated with labor efficiency, make-or-buy decisions, estimated resources to attain business goals, and information on management decisions that could have a significant bearing on cost.

 

Cure notice - a notice in writing in which the contracting officer specifies a contractor’s failure to perform some provision of the contract or failure to make sufficient progress on contract performance so as to endanger performance of the contract. The notice includes a period of time in which the contractor will be allowed to cure the failure.

 

Debarment - action taken by the CO to exclude a contractor from Hospital contracting and Hospital approved subcontracting for a reasonable, specified period. A contractor so excluded is “debarred.”

 

Depreciation - a charge to current operations which distributes the cost of a tangible capital asset, less estimated residual value, over the estimated useful life of the asset in a systematic and logical manner. Useful life refers to the prospective period of economic usefulness in a particular contractor’s operations as distinguished from physical life, as evidenced by the actual or estimated retirement and replacement practice of the contractor.

 

Direct costs - direct costs are costs that can be identified specifically with a particular project, activity, or other cost objective related to the good or services required. Typical direct costs are the compensation of employees directly performing work specified in the contract, the cost of materials consumed or expended in performance of work or delivery of goods, and other items of direct expense incurred to satisfy the performance of work or delivery of goods specified in the contract.

 

Emergency procurement - an “emergency” procurement involves life, death, or disability, equipment damage or failure, including procurement of an item necessary to preserve or protect the health or safety of patients, employees, or visitors or to correct unforeseen damage to Hospital property.

 

Evaluation factors - technical and/or cost criteria used in evaluating whether a bid/offer is responsible and rating the capabilities and qualifications of the bidder/offeror’s response to the solicitation. Where there are multiple factors, they are assigned a relative weighing to produce an overall evaluation score for each bid/offer.

 

Expert - a person or company who is so qualified, either by actual experience or by careful study and known by contemporaries, as to enable him or it to form a definite opinion of his own respecting a division of science, branch of art, or department of trade about which persons has no particular training or special study or incapable of forming accurate opinions or of deducting correct conclusions.

 

Facilities - property used for production, maintenance, research, development, or testing. The term includes plant equipment and real property, but does not include material. When used in a facilities contract, the term includes all property provided under the contract.

 

Facilities contract - a contract under which Hospital facilities are provided to a contractor or subcontractor by the Hospital for use in connection with performing one (1) or more related contracts for supplies or services.

 

Field Work Authorization (FWA) - written directive issued to contractors to proceed with work not actually included in the original scope of work but reasonably related to the work set forth in the original contract.

 

Firm fixed price contract - a contract that establishes a price that is not subject to any adjustment on the basis of the contractor’s actual cost experience in performing the contract. This contract type places upon the contractor maximum incentive to control costs and perform effectively and imposes minimum administrative burden upon the contracting parties.

 

Fixed price contract with economic adjustments - a contract that provides for upward and downward revision of the stated contract price upon the occurrence of specific contingencies.

 

Fixed price incentive contract - a contract that provides for adjusting profit and establishing the final contract price by a formula based on the relationship of final negotiated total cost to total target cost. It specified a target cost, a target profit, a price ceiling, and a price adjustment formula negotiable at the outset. The price ceiling is the maximum that may be paid to the contractor, except for any adjustment under other contract clauses. This contract type provides a positive, calculable profit incentive for the contractor to control costs.

 

Hospital-furnished property - property in the possession of or directly acquired by the Hospital and subsequently made available to the contractor.

 

Hospital property - all property owned by or leased to the Hospital or acquired by the Hospital under the terms of the contract, including Hospital-furnishing property.

 

Indictment - an accusation in writing found and presented by a grand jury to the court charging that a named person has committed a criminal offense, including any information or other filing by a competent prosecuting authority charging a criminal offense.

 

Indirect costs - indirect costs are costs that are not readily identifiable with a particular contract cost objective, but nonetheless are necessary to the performance of the work or delivery of the goods specified in the contract. An example of indirect costs is general and administrative expenses.

 

Individual surety - a natural person, as distinguished from a business entity, who is liable for the entire penal amount of the bond.

 

Inspection - examining and testing supplies, services, or construction to determine whether they conform to contract requirements. This includes, when appropriate, examination and testing of raw materials, components, and intermediate assemblies.

 

Insurance - a contract which provides that, for a stipulated consideration, the insurer undertakes to indemnify the insured party against risk of loss, damage, or liability arising from an unknown or contingent event.

 

Insurance administration expenses - the contractor’s costs of administering an insurance program, which may include the cost of operating an insurance or risk management department, processing claims, actuarial fees, and service fees paid to insurance companies, trustees, or technical consultants.

 

Interested party - An actual or prospective bidder or offeror whose direct economic interest would be affected by the award of a contract or by the failure to award a contract.

 

Invention - any device, process, design, or other discovery that is or may be patentable or otherwise protectable under Title 35 of the U.S. Code.

 

Liquidated damages - a sum stipulated and agreed upon by the parties, at the time of entering into a contract, as being payable as compensation for loss in the event of a breach.

 

Material - property that may be incorporated into or attached to a deliverable end item or that may be consumed or expended in performing a contract. The term includes assemblies, components, parts, raw and processed materials, and small tools and supplies that may be consumed in normal use in performing a contract.

 

Material costs - costs of items such as raw materials, parts, sub-assemblies, components, and manufacturing supplies, whether purchased or manufactured by the contractor, which may include such collateral items as inbound transportation and in transit insurance.

 

Medical and human care services - services provided by professionals whose occupations are subject to licensure under the D.C. Health Occupations Revisions Act of 1985, D.C. Code, 2001 Ed. §§3-1201.01 to 3-1213.01.

 

Minor informality or irregularity - some immaterial defect in a bid or variation of a bid from the exact requirements of the CSB that can be corrected or waived without being prejudicial to other bidders. The defect or variation is immaterial when the effect on price, quantity, quality, or delivery is negligible when contrasted with the total cost or scope of the requirement.

 

Mistakes - mistakes are clearly evident errors such as typographical errors in extending unit prices, transposing errors, and arithmetical errors.

 

Multiyear contract - a contract for a period covering more than one (1) fiscal year but not more than five (5) fiscal years.

 

Nonrecurring costs - those production costs which are generally incurred on a tone-time basis and include costs such as plant or equipment relocation, plant rearrangement, pre-production engineering, initial spoilage and rework, and specialized work force training.

 

Notice of intent to award - a written notice to the apparent awardee advising of intent to award the contract contingent upon the executive of required bonds and the formal contract, and the obtaining of all necessary approvals.

 

Novation - although the transfer of a government contract is prohibited by law, the Government may, if it is in the best interest, recognize a third party as the successor in interest to a Government contract when the third party’s interest in the contract arises out of the transfer either of all the assets of the contractor or of all of that part of the contractor’s assets involved in the performance of the contract.

 

Option - a unilateral right in a contract under which, for a specified time, the Hospital may elect to purchase additional quantities or services called for by the contract, or may elect to extend the term of the contract.

 

Partial termination - the termination of a part, but not all, work that has not been completed and accepted under a contract.

 

Payment bond - a bond that ensures payment as required by law to all persons supplying labor or material in the performance of the work provided for in the contract.

 

Performance bond - a bond that secures performance and fulfillment of the contractor’s obligations under the contract.

 

Personal property - property of any kind or interest in property except real property and records of the Hospital.

 

Plant equipment - personal property of a capital nature (including equipment, machine tools, test equipment, furniture, vehicles, and accessory and auxiliary items) for use in manufacturing supplies, in performing services, or for any administrative or general plant purpose.

 

Plans and specifications - drawings, text, and other descriptions of the physical or functional characteristics required for and preliminary to the construction.

 

Preventative maintenance - maintenance performed on a regularly scheduled basis to prevent the occurrence of defects and to detect and correct minor defects before they result in serious consequences.

 

Price - cost plus any fee or profit applicable to the contract type.

 

Price analysis - the process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit.

 

Project manager - the individual assigned by the CO responsible for the on-site management of a project after a contact is executed.

 

Proprietary information - information, including a formula, patterns, compilation, program, device, method, technique, or process that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means, by other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

Proprietary information - information, including trade secrets, data, formulas, patterns, compilations, programs, devices, methods, techniques, or processes, that has the following characteristics:

 

(a)It devices independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means, by, other persons who can obtain economic value from its disclosure or use; or

 

(b)It is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

Purchase description - a description of the essential physical characteristics and functions required to meet the Hospital’s minimum needs.

 

Purchase order - the purchase order is the official document for all purchasing activities. The terms and conditions of the purchase order detailed descriptions of the goods or services being procured, and also give legal protection to the Hospital. It provides legal reference and backup in disputes arising from problems in shipping, quality, damage, etc.

 

Quotation - a citation of price and delivery terms or a period of performance by a contractor in response to a contracting officer’s request.

 

Real property - land and rights in land, group improvements, utility distribution systems, and buildings and other structures. The term does not include foundations and other work necessary for installing plant equipment.

 

Recurring cost - the production costs that vary with the quantity being produced, such as labor and materials.

 

Reinsurance - a transaction which provides that a surety, for a consideration, agrees to indemnify another surety against loss which the latter may sustain under a bond which it has issued.

 

Responsible bidder/offeror - a bidder/offeror that demonstrates the capability and qualifications to provide the goods or services requested in the Hospital’s solicitation, including meeting the specifications, scope of work, terms and conditions, and any other requirements.

 

Responsible offeror - respondent to a request for proposal (RFP) or an invitation for the bid (IFB) who has the qualifications to satisfying the required scope of work.

 

Responsive bid - a contractor who submits a bid/proposal that conforms in all material respects to the invitation for bids/request for proposals.

 

Responsive offer - respondent to an IFB who has the qualifications to satisfy the requirements of the IFB.

 

Settlement agreement - a written agreement in the form of a modification to a contract settling all or a severable portion of a settlement proposal.

 

Settlement proposal - a proposal for effecting settlement of a contract terminated, in whole or in part, submitted by a contractor or subcontractor.

 

Show cause notice - a notice in which the contracting officer notifies the contractor in writing of the possibility of a termination for default. The notice calls the contractor’s attention to the contractual liabilities if the contract is terminated for default, and requests the contractor to show cause why the contract should not be terminated for default.

 

Small purchase - a procurement of supplies, services, or other items in an aggregate amount not exceeding the small purchase authority limitations set forth in this section.

 

Solicitation - request for proposals (RFP), except as otherwise provided in this section.

 

Sole source procurement - an award for the procurement of goods, supplies, equipment, or services to the only known capable supplier, upon determination that the procurement is warranted due to the unique nature of the requirement, proposed supplier, or market conditions. This includes medical and human service and expert providers, where a high level of personal confidence is required and a high degree of professional skill and knowledge is required of the individuals providing the services.

 

Specification - a description of the technical requirements for a material, product, or service that includes the criteria for determining whether these requirements are met.

 

Standard - a document that establishes engineering and technical limitations and applications of items, materials, processes, methods, designs, and engineering practices. It includes any related criteria deemed essential to achieve the highest practical degree of uniformity in materials or products, or interchangeability of parts. Standards may be used in specifications, invitations for bids, requests for proposals, and contracts.

 

Stop-work order - a written document issued by the contracting officer advising a contractor to cease work.

 

Subcontractor - any supplier, distributor, vendor, or firm which furnishes supplies, services, or construction to or for a prime contractor or another subcontractor.

 

Supplemental agreement - a bilateral contract modification.

 

Surety - a party legally liable for the debt, default, or failure of a principal to satisfy a contractual obligation.

 

Suspension - action taken by the CO to disqualify a contractor temporarily from Hospital contracting and Hospital approved subcontracting. A contractor so disqualified is “suspended.”

 

Termination for convenience - the exercise of the Hospital’s right to terminate, completely or partially, a contract when it is in the best interest of the Hospital.

 

Termination for default - the exercise of the Hospital’s contractual right to terminate, completely or partially, a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations.

 

Testing - the element of inspection that determines the properties or elements, including functional operation of supplies or their components, by the application of established scientific principles and procedures.

 

Unilateral contract modification - a contract modification that is signed only by the contracting officer.

 

Warranty - a promise or affirmation given by a contractor to the Hospital regarding the nature, usefulness, or condition of the supplies, services, or construction furnished under a contract.

 

source

Final Rulemaking published at 41 DCR 4508, 4522 (July 8, 1994).