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  • Question

    I was informed that purchase orders should not contain cost CLINs. Cost CLINs should only be on "C" type contracts. Is this correct?


    Answer

    This response is based on the information provided.  We suggest you discuss with your contracting and finance team, program manager and/or legal department as appropriate.

     

    The short answer to the question is generally "YES", "Purchase orders should not contain cost CLINs."  We assume, if you are issuing a purchase order, that your requirement is a commercial item awarding using Simplified Acquisition Procedures.  FAR 13.302-1(a) states the following: "Except as provided under the unpriced purchase order method (see 13.302-2), purchase orders generally are issued on a fixed-price basis".  Further, with respect to commercial items and contract types, FAR 12.207(a) states:  "Except as provided in paragraph (b) of this section, agencies shall use firm-fixed-price contracts or fixed-price contracts with economic price adjustment for the acquisition of commercial items".  The reference to the exception at FAR 12.207(b) deals with use of Time and Materials or Labor Hour contracts for commercial services (meeting certain conditions and supported by a Determination & Findings).  

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