some methods of contracting require more time than others

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some methods of contracting require more time than others

However, it does not preclude the use of options in those contracts. The six principlesreciprocity, autonomy, honesty, loyalty, equity, and integrityform the basis for all contracts using the vested methodology and provide a framework for resolving potential misalignments when unforeseen circumstances occur. Which of the following is not a streamlined method of acquisition? Any competitive negotiated acquisition having a basis for award stating that factors in addition to cost/price will be considered in selecting the successful offeror (s) 2) What is a KEY role of the COR in Acquisition Planning? (f) Presolicitation or pre-bid conferences. Accordingly, agencies should provide such information through its internal regulations. (a) The contracting officer shall justify in writing the quantities or the term under option, the notification period for exercising the option, and any limitation on option price under 17.203(g); and shall include the justification document in the contract file. When using sealed bidding, the contracting officer shall make a written determination that there is a reasonable likelihood that the options will be exercised before including the provision at 52.217-5, Evaluation of Options, in the solicitation. But when contract negotiations begin, they default to an adversarial mindset and a transactional contracting approach. Accordingly, for multi-year contracts, the agency head may authorize modification of the requirements of this subpart and the clause at 52.217-2, Cancellation Under Multi-year Contracts. Kim Kerrone, of Island Health, described how the vested methodology broke the impasse. (d) Achieve economies in production. Relational contracts that rely on parties making choices in their mutual self-interest are nothing new, of course. But the real power is it threads all the way down to core decisions on how the parties would work. In a business world where strategic, long-term relationships are critical to competitive advantage, leaders have no choice but to overturn the status quo. (a) Interagency acquisitions are commonly conducted through indefinite-delivery contracts, such as task- and delivery-order contracts. Recurring costs means costs that vary with the quantity being produced, such as labor and materials. Providing incentives to contractors to improve productivity through investment in capital facilities, equipment, and advanced technology. The formal relational contract addresses these deficiencies. We consciously approached the economics of the relationship with full transparency and a problem-solving mentality instead of a negotiations mentality, she told us. (a) The Economy Act ( 31 U.S.C.1535) authorizes agencies to enter into agreements to obtain supplies or services from another agency. (f) Insert a clause substantially the same as the clause at 52.217-8, Option to Extend Services, in solicitations and contracts for services when the inclusion of an option is appropriate. If it is anticipated that the best price available is the option price or that this is the more advantageous offer, the contracting officer should not use this method of testing the market. The inclusion of recurring costs in cancellation ceilings is an exception to normal contract financing arrangements and requires approval by the agency head. Solicitations for multi-year contracts shall reflect all the factors to be considered for evaluation, specifically including the following: (a) The requirements, by item of supply or service, for the-, (1) First program year; and. (2) For special protection covering the orderly transition of personnel and work in the event of a change in contractors. Multi-year contracting is a flexible contracting method applicable to a wide range of acquisitions. 17.106-3 Special procedures applicable to DoD, NASA, and the Coast Guard. In a negotiated acquisition, negotiations with offerors may provide information requiring a change in cancellation ceilings and dates before final negotiation and contract award. (2) An indefinite quantity or requirements contract would be more appropriate than a contract with options. The model also gave the hospitalists autonomy in scheduling. And therein lies the beauty of the formal relational contract. In the event funds are not made available for the continuation of a multi-year contract awarded using the procedures in this section, the contract shall be canceled or terminated. (c) Requirements for determinations and findings. Multi-year contract procedures provide for the amortization of certain costs over the entire contract quantity resulting in identical (level) unit prices (except when the economic price adjustment terms apply) for all items or services under the multi-year contract. (d) Broadening the competitive base with opportunity for participation by firms not otherwise willing or able to compete for lesser quantities, particularly in cases involving high startup costs. Work placed with the FFRDC is subject to the acceptance by the sponsor and must fall within the purpose, mission, general scope of effort, or special competency of the FFRDC. However, the preparation and evaluation of dual offers may increase administrative costs and workload for both offerors and the Government, especially for large or complex acquisitions. When Dell and FedEx reached their breaking point, they chose to abandon their existing contracting process and create a formal relational contract that specified desired outcomes and defined relationship-management processes at the operational, management, and executive levels. (a) (ii) The fixed or maximum fee amount is determinable by applying a formula contained in the basic contract (but see 16.102(c)); (4) A specific price that is subject to an economic price adjustment provision; or. Few companies will want to risk an expensive court case for breaching the guiding principles; thus the contract becomes a deterrent against counterproductive behavior. Companies understand that their suppliers are critical partners in lowering costs, increasing quality, and driving innovation, and leaders routinely talk about the need for strategic relationships with shared goals and risks. (b) The contracting officer need not evaluate offers for any option quantities when it is determined that evaluation would not be in the best interests of the Government and this determination is approved at a level above the contracting officer. The requesting agency shall provide to the servicing agency any unique terms, conditions, and applicable agency-specific statutes, regulations, directives, and other applicable requirements for incorporation into the order or contract. (f) (3) A specified limitation on the total duration of the contract. Further, the rule revises procurement . (2) Direct acquisitions. Level unit prices. (d) The work is closely related to the agencys mission and is of a long-term or continuing nature, and there is a need-, (1) To ensure its continuity; and. They shall not include any costs of labor or materials, or other expenses (except as indicated above), which might be incurred for performance of subsequent program year requirements. Subpart 17.7 - Interagency Acquisitions: Acquisitions by Nondefense Agencies on Behalf of the Department of Defense, This part prescribes policies and procedures for the acquisition of supplies and services through special contracting methods, including-. (d) The period may extend beyond the contract completion date for service contracts. These include contracting with multiple suppliers, forcing suppliers to lock in prices, using termination-for-convenience clauses, or obligating suppliers to cover activities that might arise after the initial contracting phase. refurbishing. You also have an on-premises Active Directory domain that contains a user named User1. For example, consider that the total nonrecurring costs (see 15.408, Table 15-2, III. Benefits may accrue by including options in a multi-year contract. The contract may not be awarded until the thirty-firstday after the date of notification. (d) When contracting for services, the contracting officer-. Any extension or renewal of an operating and management contract must be authorized at a level within the agency no lower than the level at which the original contract was authorized in accordance with 17.602(a). If the contract is terminated for the convenience of the Government in whole, including requirements subject to cancellation, the Governments obligation shall not exceed the amount specified in the Schedule as available for contract performance, plus the cancellation ceiling. The requirements, by item of supply or service, for the-, (1) (1) You need to ensure, Prior to certifying the Managing Accounting Billing Statement for contract payments by Governmentwide Commercial Purchase Card, the Approving/ Billing Official must do what two things? However, these tactics not only confer a false sense of security (because both firms switching costs are too high to actually invoke the clauses) but also foster negative behaviors that undermine the relationship and the contract itself. When contracting for services, the contracting officer-. Unfortunately, this story is not unique. The objectives of this technique are one or more of the following: (a) Reduce delivery time. There is a reasonable expectation that, throughout the contemplated contract period, the head of the agency will request funding for the contract at a level to avoid contract cancellation; and. (1) The option cannot be evaluated under 17.206; or; (2) Future competition for the option is impracticable. In this article, we look at the theoretical underpinnings of formal relational contracts and lay out a five-step methodology for negotiating them. (a) Multi-year contracting; (c) Leader company contracting. To satisfy requirements of part 6 regarding full and open competition, the option must have been evaluated as part of the initial competition and be exercisable at an amount specified in or reasonably determinable from the terms of the basic contract, e.g.-. (b) Protection of existing authority. It is crucial that all terms and conditions of the formal relational contract are aligned with the guiding principles. This subpart prescribes policies and procedures for the use of option solicitation provisions and contract clauses. Avoidance of the need for establishing quality control techniques and procedures for a new contractor each year. (4) In no event shall the servicing agency require, or the requesting agency pay, any fee or charge in excess of the actual cost (or estimated cost if the actual cost is not known) of entering into and administering the contract or other agreement under which the order is filled. Office of the Director of National Intelligence; Intelligence elements of the Federal Bureau of Investigation, Department of Energy, and Drug Enforcement Agency; Bureau of Intelligence and Research of the Department of State; Office of Intelligence and Analysis of the Department of the Treasury; The Office of Intelligence and Analysis of the Department of Homeland Security and the Office of Intelligence of the Coast Guard; and. For acquisitions on behalf of the Department of Defense, also see subpart 17.7. Public Law 95-507, which amended the Small Business Act of 1978, formalized the Small Business Subcontracting Plan requirement in contracts over $500,000 to large businesses. (i) Prior to the issuance of a solicitation, the servicing agency and the requesting agency shall both sign a written interagency agreement that establishes the general terms and conditions governing the relationship between the parties, including roles and responsibilities for acquisition planning, contract execution, and administration and management of the contract(s) or order(s). Multi-year contract procedures provide for the amortization of certain costs over the entire contract quantity resulting in identical (level) unit prices (except when the economic price adjustment terms apply) for all items or services under the multi-year contract. In Step 3, parties commit to six guiding principles that contractually prohibit opportunistic tit-for-tat moves. Some relationships, such as those involving the purchase of commodity products and services, are truly transactional and only need traditional contracts. (a) The contracting officer may award a prime contract to a-. Nondefense agency contracting officers are responsible for ensuring support provided in response to DoDs request complies with paragraph (b) of this section. Method of contracting.

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some methods of contracting require more time than others

As a part of Jhan Dhan Yojana, Bank of Baroda has decided to open more number of BCs and some Next-Gen-BCs who will rendering some additional Banking services. We as CBC are taking active part in implementation of this initiative of Bank particularly in the states of West Bengal, UP,Rajasthan,Orissa etc.

some methods of contracting require more time than others

We got our robust technical support team. Members of this team are well experienced and knowledgeable. In addition we conduct virtual meetings with our BCs to update the development in the banking and the new initiatives taken by Bank and convey desires and expectation of Banks from BCs. In these meetings Officials from the Regional Offices of Bank of Baroda also take part. These are very effective during recent lock down period due to COVID 19.

some methods of contracting require more time than others

Information and Communication Technology (ICT) is one of the Models used by Bank of Baroda for implementation of Financial Inclusion. ICT based models are (i) POS, (ii) Kiosk. POS is based on Application Service Provider (ASP) model with smart cards based technology for financial inclusion under the model, BCs are appointed by banks and CBCs These BCs are provided with point-of-service(POS) devices, using which they carry out transaction for the smart card holders at their doorsteps. The customers can operate their account using their smart cards through biometric authentication. In this system all transactions processed by the BC are online real time basis in core banking of bank. PoS devices deployed in the field are capable to process the transaction on the basis of Smart Card, Account number (card less), Aadhar number (AEPS) transactions.