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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 27. CONTRACTS AND PROCUREMENT |
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Chapter 27-24. TYPES OF CONTRACTS |
Section 27-2404. FIXED-PRICE CONTRACTS WITH PROSPECTIVE PRICE REDETERMINATION
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2404.1The contracting officer may use a fixed-price contract with prospective price redetermination in procurements of quantity production or services for which it is possible to negotiate a fair and reasonable firm-fixed-price for an initial period, but not for subsequent periods of contract performance as provided in § 2404.4.
2404.2The contracting officer shall not use a fixed-price contract with prospective price redetermination unless all of the following apply:
(a)The contracting officer has determined that the conditions for use of a firm-fixed-price contract are not present and a fixed-price incentive contract would not be more appropriate;
(b)The contractor's accounting system is adequate for price redetermination;
(c)The prospective pricing periods can be made to conform with the operation of the contractor's accounting system; and
(d)There is reasonable assurance that price redetermination actions will take place promptly at the specified times.
2404.3When the contracting officer uses a fixed-price contract with prospective price redetermination, the initial period shall be the longest period for which it is possible to negotiate a fair and reasonable firm-fixed-price. Each subsequent pricing period shall be at least twelve (12) months.
2404.4A fixed-price contract with prospective price redetermination may provide for a ceiling price based on evaluation of the uncertainties involved in performance and their possible cost impact. The ceiling price shall provide for assumption of a reasonable proportion of the risk by the contractor and, once established, may be adjusted only by operation of provisions for an equitable adjustment or other revision of the contract price under stated circumstances.
2404.5When a fixed-price contract with prospective price redetermination is used, the contracting officer shall include an appropriate clause approved by the Director.