Operating Status
FULLY OPERATIONAL
OPERATING STATUS
1. The DFARS does not state why only the first year of a multiyear contract is included in the length factor of weighted guidelines, but it could be because congress may not fund past the first year.
2. From what you wrote it sounds like you might not be clear on what a firm fixed price (FFP) contract is since you mentioned share ratios. FFP do not have share ratios. If the contractor is able to reduce their costs, they keep all of the savings. Please read DFARS 215.404-71-5 and pay particular attention to paragraph (c).
3. The answer for your third question is similar to answer 2, you need to read the DFARS. Read DFARS 215.404-71-3 (d)(2)(i) When costs have been incurred prior to definitization, generally regard the contract type risk to be in the low end of the designated range. If a substantial portion of the costs have been incurred prior to definitization, the contracting officer may assign a value as low as 0 percent, regardless of contract type.
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