Part 5316 - Types of Contracts       DAFFARS PART 5316 Knowledge Center          *Revised: June 2023*                                                 Subpart 5316.1 - SELECTING CONTRACT TYPES                                                         5316.103 Negotiating Contract Type                                                                             Subpart 5316.206 — FIXED-CEILING-PRICE CONTRACTS WITH RETROACTIVE PRICE REDETERMINATION                                                         5316.206-3 Limitations                                                                             Subpart 5316.4 — INCENTIVE CONTRACTS                                                         5316.401 General                                                            5316.404 Fixed-Price Contracts with Award Fees                                                            5316.405-2 Cost-Plus-Award-Fee Contracts                                                                             Subpart 5316.5 — INDEFINITE-DELIVERY CONTRACTS                                                         5316.503 Requirements Contracts                                                            5316.504 Indefinite-Quantity Contracts                                                            5316.505 Ordering                                                            5316.505-90 Decentralized Ordering                                                                             Subpart 5316.6 — TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS                                                         5316.601 (d) Limitations                                                            5316.603-2 Application                                                            5316.603-3 Limitations    Subpart 5316.1 - SELECTING CONTRACT TYPES           5316.103  Negotiating Contract Type       (d) See the tailorable Determination and Findings template.Subpart 5316.206 — FIXED-CEILING-PRICE CONTRACTS WITH RETROACTIVE PRICE REDETERMINATION               5316.206-3  Limitations       (d) See MP5301.601(a)(i).Subpart 5316.4 — INCENTIVE CONTRACTS                         5316.401  General       (d)(i) See MP5301.601(a)(i).         (d)(ii) See MP5301.601(a)(i).         (e)(3)(i) See MP5301.601(a)(i).5316.404  Fixed-Price Contracts with Award Fees       See 5316.401(e)(3)(i) above.5316.405-2  Cost-Plus-Award-Fee Contracts       (1) *Award-fee pool.* See MP5301.601(a)(i).Subpart 5316.5 — INDEFINITE-DELIVERY CONTRACTS                              5316.503  Requirements Contracts       (b)(2) Determinations for requirements contracts that exceed the amount specified in FAR 16.503(b)(2) and FAR 16.504(c)(1)(ii)(D)(1) must be approved in accordance with 5316.504(c)(1)(ii)(D) below.5316.504  Indefinite-Quantity Contracts       (a) Description.         (2) Upon execution of the contract, an obligation shall be recorded based upon the issuance of a task-order or delivery-order for the cost/price of the minimum quantity specified. The Government’s actual obligation must be recorded at the time of contract award. (See DoD 7000.14-R, Volume 3, Chapter 8, paragraph 080604)         (c)(1)(ii)(D) *Limitation on single award contracts*.         *(1)* The SCO has the authority to make the written determination required by FAR 16.504(c)(1)(ii)(D)(1). When a J&A is required, a separate written determination is not required if the J&A addresses one of the circumstances at FAR 16.504(c)(1)(ii)(D)(1)(i)-(iv). Provide a copy of the written determination to the cognizant HCA Workflow.         (c)(2)(i)(A) The CO has the authority to determine that multiple awards are not practicable unless the PEO or HCA designates another official and is a part of the acquisition planning.         (c)(2)(i)(B) The CO has the authority to determine that multiple awards are not practicable unless the PEO or HCA designates another official.         (c)(2)(ii) The CO has the authority to determine that multiple awards are not practicable unless the PEO or HCA designates another official.5316.505 Ordering       (b) *Orders under multiple award contracts*.         (1) *Fair opportunity*.         (ii) The contracting officer must use streamlined ordering procedures. SCOs must justify the use of FAR 15.3 Source Selection Procedures for any contract or task-order or delivery-order, regardless of dollar value made in accordance with FAR 16.505. The SCO must submit justifications to the cognizant HCA Workflow before proceeding with the source selection and/or Clearance session.         (2) *Exceptions to the fair opportunity process*. See DAFFARS 5306.304(a) for the approving officials for a proposed task-order or delivery-order using the fair opportunity exceptions at FAR 16.505(b)(2). See the tailorable Justification for an Exception to Fair Opportunity template. For exceptions to fair opportunity that are intended for purposes of awarding a “Bridge Action” see DAFFARS 5306.303-1-90.         (8) *Task-order and delivery-order ombudsman*. See DAFFARS 5301.91.5316.505-90  Decentralized Ordering       For contracts that authorize decentralized ordering (i.e., ordering by a contracting office at any other location), the contracting officer with overall responsibility for the contract must:         (a) Ensure that adequate control procedures are in place before any orders are authorized; and         (b) Exercise oversight of decentralized ordering throughout the period of performance under the contract to ensure that the procedures are followed.Subpart 5316.6 — TIME-AND-MATERIALS, LABOR-HOUR, AND LETTER CONTRACTS                         5316.601 (d) Limitations       *Approval of determination and findings for time-and-materials or labor-hour contracts (as indicated in TABLE 1 below).*         (i)(A)(1) *Base period plus any option periods is three years or less.*         *(i)* For the Department of the Air Force, the threshold at is $10 million in lieu of $1 million.         *(ii)* For the Department of the Air Force, the threshold at DFARS 216.601(d)(i)(A)(1)(ii) is $10 million in lieu of $1 million.          (i)(A)(2) *Base period plus any option periods exceeds three years.* The SCO is authorized to approve individual determinations. In addition to the D&F requirements outlined in, the contracting officer shall address the plan to maintain appropriate government surveillance of contractor performance, including cost controls, and ensure that the contract clearly defines the supplies or services being acquired. The cognizant HCA retains the authority to approve class determinations regardless of the contract length and regardless of dollar value. See MP5301.601(a)(i).         (i)(A)*(3)* See MP5301.601(a)(i).         **D&F Approvals**                         **Not delegable – See DAFFARS 5316.601(d)(i)(A)****D&F Type**                      **Contract Length**                      **Contract Value**                      **Approval Authority**Individual                      3 years or less                      ≤ $10M                      One level above the COIndividual                      3 years or less                      > $10M                      SCOIndividual                      Exceeds 3 years                      Any contract value                      SCOClass                      Any contract length                      Any contract value                      HCA**TABLE 1 Approval of the D&F – Not further delegable.**5316.603-2  Application       (c)(3) See MP5301.601(a)(i).5316.603-3  Limitations       See MP5301.601(a)(i).