Illinois Administrative Code › Title 44 - GOVERNMENT CONTRACTS, GRANTMAKING, PROCUREMENT AND PROPERTY MANAGEMENT › Part 2600 - STATE BOARD OF ELECTIONS PROCUREMENT RULES › Subpart G - CONTRACT TYPE › Section 2600.600 - Types of Contracts

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				This Section contains descriptions of types of contracts and limitations as to
				when they will be utilized by SBEL in its procurements. Types of contracts not
				mentioned in this Section may also be utilized.
b) The cost-plus-a-percentage-of-cost method
				of contracting is prohibited by Section 20-55 of the Code. This type of
				contracting may not be used alone or in conjunction with an authorized type of
				contract. A cost-plus-percentage-of-cost contract is one in which the vendor
				selects the supply or service on which the vendor's percentage is applied.
				Contracts that involve a percentage mark-up are not necessarily a
				cost-plus-a-percentage-of-cost contract.
c) Fixed-Price Contracts. If the contract
				permits unilateral action by the vendor to bring about the condition under
				which a price increase may occur, SBEL shall have the right to reject the price
				increase and terminate without cost the future performance of the
				contract.
d) A cost-reimbursement
				type contract will be used only when the Procurement Officer determines in
				writing that such a contract is likely to be less costly to the State than any
				other type or that it is impracticable to obtain the items. This Section does
				not apply to reimbursement of travel expenses in accordance with applicable
				travel control board regulations.
e) Cost Contract. A cost contract provides
				that the vendor will be reimbursed for allowable costs incurred in performing
				the contract, but will not receive a fee.
f) Cost-Plus-Fixed-Fee Contract. This is a
				cost-reimbursement type contract that provides for payment to the vendor of an
				agreed fixed fee in addition to reimbursement of allowable incurred costs. The
				fee is established at the time of contract award and does not vary if the
				actual cost of contract performance is greater or less than the initial
				estimated cost established for the work. Thus, the fee is fixed but not the
				contract amount because the final contract amount will depend on the allowable
				costs reimbursed. The fee is subject to adjustment only if the contract is
				modified to provide for an increase or decrease in the scope of work specified
				in the contract.
g) Time and
				Materials Contracts; Labor Hour Contracts. Time and materials contracts provide
				an agreed basis for payment for materials supplied and labor performed. Labor
				hour contracts provide only for the payment of labor performed. They shall, to
				the extent possible, contain a stated ceiling or an estimate that shall not be
				exceeded without prior SBEL approval.
h) Definite Quantity and Indefinite Quantity
				Contracts
1) Definite Quantity. A definite
				quantity contract is a fixed-price contract that provides for delivery of a
				specified quantity of supplies or services, either at specified times or when
				ordered.
2) Indefinite Quantity. An
				indefinite quantity contract is a contract for an indefinite amount of supplies
				or services to be furnished at specified times, or as ordered, that establishes
				unit prices of a fixed-price type. Generally an approximate quantity or the
				best information available as to quantity is stated in the solicitation. The
				contract may provide a minimum quantity SBEL is obligated to order and may also
				provide for a maximum quantity provision that limits SBEL's obligation to
				order.