(b) enforcement. A basic agreement should be used when a significant number of separate contracts can be awarded to a contractor during a given period of time and significant recurring bargaining issues have arisen with the contractor. Basic agreements can be used with fixed-price negotiated contracts or reimbursement contracts. Use a free 30-minute consultation to review a SaaS, SLA, SOW, or consulting or licensing agreement, highlight everything important, and/or provide the added security of adequate protection. You might be surprised by the errors and/or omissions that occur in most standard agreements. A zero-dollar contract is a contract without currency exchange, or the payment can be as little as a dollar – a nominal payment. For example, government agencies often use a zero-dollar contract to use government facilities. A company can sign this type of contract to maintain a government entity and, in return, is granted the right to lease that facility to third parties for limited use. Keep in mind that only a handful of people at UNLV have the authority to legally bind UNLV to a contract, and some of the signatories are limited to approvals of a certain type or amount in dollars. The only eligible signatories or approvers are: the Chancellor, the President, the Executive Vice-President and Provost, the Vice-President of Commercial Affairs, the Vice-Presidents, the Director of Sports and certain eligible delegations. If you sign a contract even if you do not have the authority to sign contracts or the signing authority for the amount you have not duly authorized, you may be held personally liable for the total amount of the unauthorized contract. In addition, you may be subject to disciplinary action up to and including termination of employment in accordance with UNLV/NSHE policies and procedures.
For more information, see Signing Authorization. 16-405-1 Incentive fee and cost contracts. (a) Description. The Cost Plus incentive fee contract is a reimbursement contract that provides that the fees originally negotiated are then adjusted according to a formula based on the ratio of the total eligible costs to the total target cost. This type of contract specifies a target cost, target fees, minimum and maximum fees, and a fee adjustment formula. After the execution of the contract, the fees to be paid to the contractor will be determined according to the formula. The formula provides for fee increases above the target royalty within limits if the total eligible costs are below the target costs and a reduction in the fee below the target royalty if the total eligible costs exceed the target costs. This increase or decrease is intended to encourage the contractor to effectively manage the contract. If the total eligible costs are above or below the cost range within which the fee adjustment formula is applied, the Contractor shall receive the total eligible costs plus the minimum or maximum fee. (b) enforcement.
(1) A cost plus incentive fee contract is appropriate for development and testing services or programs if: (i) a reimbursement contract is required (see 16.301-2); and (ii) target costs and a fee adjustment formula can be negotiated, which may motivate the contractor to manage effectively. 2. The contract may contain technical incentives for performance where it is very likely that the necessary development of a larger system is feasible and the government has set its performance targets at least in general. This approach may also apply to other acquisitions if the use of cost and technical performance incentives is desirable and administratively feasible. (3) The fee adjustment formula should provide an effective incentive across the full range of reasonably foreseeable deviations from the target costs. When a high maximum rate is negotiated, the contract also provides for a low minimum rate, which can be a zero amount or, in rare cases, a negative rate. (c) restrictions. No fee plus incentive fee contract will be awarded unless all restrictions of 16-301-3 are met. 16 405-2 Contracts with award fees plus costs.- A cost-plus contract is a cost reimbursement contract that provides for a fee consisting of (1) a basic amount determined at the beginning of the contract, if any and at the discretion of the client, and (2) an additional amount that the contractor can earn in whole or in part during performance and that is sufficient to provide a motivation for excellence in the areas of costs, schedule and technical performance. See paragraph 16.401(e) for requirements for the use of this type of contract. A contract is an agreement between two or more people that is legally enforceable. It can be a formal agreement in writing, on a towel, in an email, online or in an order form, and it can even have an amount of zero dollars.
Since all UNLV contractual terms must comply with local, state or federal laws and regulations, the requirements of the Nevada Board of Regents of the Nevada System of Higher Education (“NSHE”), and the guidelines of the Office of the Attorneys General, it is important that you contact your department`s procurement representative before signing or negotiating the terms. If you`re not sure if your contract is for purchase or needs to be reviewed by another service, read the contract FAQ or contact your purchasing representative. d) Orders. A contract agent representing a government activity listed in a basic contract may place orders for the necessary supplies or services covered by this Agreement. This subsection describes the guidelines and procedures for the creation and use of basic agreements and basic purchase agreements. (See 13,303 for master procurement contracts (EPS) and see 35,015 (b) for additional coverage of core agreements with educational institutions and not-for-profit organizations.) 16.603-1 Description. A contract letter is a written pre-contractual document that authorizes the contractor to immediately start manufacturing deliveries or providing services. 16.603-2 Application. (a) A contract letter may be used if (1) the interests of the government require that a binding commitment be given to the contractor so that work can begin immediately, and (2) the negotiation of a final contract is not possible in time to meet the requirement.
However, a contractual letter must be as complete and unambiguous as possible in the circumstances. (b) Where the award of an order letter is based on price competition, the contracting authority shall include an overall price ceiling in the order letter. (c) Each contract letter shall contain, as required by clause 52.216-25, Contract Definition, a negotiated definition plan that includes (1) data for the submission of the Contractor`s price proposal, required certified cost or price data, and data other than certified cost or price data; and, if necessary, manufacturing or purchasing and subcontracting plans, (2) a date for the start of negotiations and (3) a target date for definition, which should be the earliest possible date for definition. The schedule provides for a definition of the contract within 180 days of the date of the contract letter or before the completion of 40% of the work to be performed, whichever comes first. However, in extreme cases and in accordance with the Agency`s procedures, the contracting entity may authorise a grace period. If, after exhausting all reasonable efforts, the Client and the Contractor are unable to negotiate a final contract because they have not reached an agreement on the price or fees, the clause of 52.216-25 obliges the Contractor to continue the Work and provides that the Client, with the consent of the head of the contractual activity, determine a reasonable price or cost in accordance with paragraphs 15.4 and 31, subject to appeal in accordance with the dispute resolution clause. (d) The maximum liability of the Government inserted in section 52.216-24, Limitation of Government Liability, is the estimated amount necessary to meet the contractor`s capital requirements prior to the definition. However, it may not exceed 50 per cent of the estimated cost of the final contract, unless the staff member who approved the contract letter gives prior authorization. e) The customer assigns a priority evaluation to the order letter if this is appropriate in accordance with 11 604. 16.603-3 Restrictions. A contract letter can only be used after the head of the contractual activity or an agent has determined in writing that no other contract is appropriate. Letter contracts may not: (a) commit the Government to enter into a final contract beyond the funds available at the time of performance of the letter contract; (b) participate without a contest if Part 6 prescribes a contest; or (c) be modified to meet a new requirement, unless that requirement is inextricably linked to the existing contractual letter.
Such a change is subject to the same requirements and restrictions as a new contractual letter. .