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  • Question

    Is a COR type B memo, supposed to be for fixed price or other than fixed price? There is a lot of documentation out there showing both answers.


    Answer

    Agreed, there is some minor confusion regarding Type B contracts.  For a complete description of how to define your contract requirement type see Chapter 1, Page 10, of the newly published DOD COR HDBK dated 22 Mar 2012.  The following excerpt is provided:
     
    The DoD COR standard (*) stipulates that the training and qualifications for, and surveillance duties assigned to CORs must be commensurate with the complexity of the contract requirement (detail on the DoD COR Standard is in Appendix C). Requirement types are:
    ·  Type A: Fixed-price requirements without incentives, low performance risk;
    ·  Type B: Other than fixed-price requirements without incentives, low performance risk; and,
    ·  Type C: Unique contract requirements that necessitate a professional license, higher education, or specialized training beyond the Type B requirements.
     
    (*) Under Secretary of Defense (Acquisition, Technology & Logistics) Memorandum, “DoD Standard for Certification of Contracting Officer’s Representatives (COR) for Services Acquisitions,” 29 March 2010,
     
    You can find a copy of the DoD COR HDBK at the following two links:
    http://www.acq.osd.mil/dpap/cpic/cp/panel_on_contracting_integrity.html
    https://acc.dau.mil/cor
     
    Remember, the guidance above is the minimum criteria for the Contracting Officer (KO) to consider when deciding how to categorize the contract.  In deciding if a contract should be type B when it is FFP without incentives; the KO should focus on the “performance risk” element.  If you have other than low performance risk, yet the KO does not feel the COR requires “a professional license, higher education, or specialized training” in order to effectively monitor contractor performance; then the KO has the authority to identify it as Type B.  In fact, the KO should ALWAYS focus on performance risk when making their decision.

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