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  • Question

    Can this contract contain a CLIN for each CPFF and CPAF contract type.


    Answer

    The following response is based solely on the question and background information provided. As we do not have all of the facts particular to your contract, program, and situation, we highly recommend you consult your Contracting Officer and Legal Office for guidance.
     
    Based on the information provided, this response assumes your contract has not yet been awarded and that it will be negotiated under FAR Part 15.  Yes, your contract can contain both CPFF and CPAF CLINs.  FAR 16.102(b) states, in part “Contracts negotiated under Part 15 may be of any type or combination of types that will promote the Government’s interest, except as restricted in this part (see 10 U.S.C. 2306(a) and 41 U.S.C. 254(a)).”  Additionally, FAR 4.1001 states " Contracts may identify the items or services to be acquired as separately identified line items. Contract line items should provide unit prices or lump sum prices for separately identifiable contract deliverables, and associated delivery schedules or performance periods. Line items may be further subdivided or stratified for administrative purposes (e.g., to provide for traceable accounting classification citations).  More specifically, DFARS 204.7103-1(c) states “For a contract that contains a combination of fixed-price line items, time-and-materials/labor-hour line items, and/or cost-reimbursement line items, identify the contract type for each contract line item in Section B, Supplies or Services and Prices/Costs, to facilitate appropriate payment.”  For DoD activities, proper numbering procedures of line items is found at PGI 204.7103 in the DFARS.

    Additional information is found at
    FAR 16.103(a), which states “Selecting the contract type is generally a matter for negotiation and requires the exercise of sound judgment. Negotiating the contract type and negotiating prices are closely related and should be considered together. The objective is to negotiate a contract type and price (or estimated cost and fee) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance.”  Finally, FAR 16.103(d) states “Each contract file shall include documentation to show why the particular contract type was selected. Exceptions to this requirement are --(1) Fixed-price acquisitions made under simplified acquisition procedures; (2) Contracts on a firm fixed-price basis other than those for major systems or research and development; and (3) Awards on the set-aside portion of sealed bid partial set-asides for small business.”

    Taken as a whole, the FAR and DFARS allow you to include both CPFF and CPAF CLINs in one contract.
      You then need to structure your CLINs according to the guidance found in DFARS PGI 204.7103.  I encourage you to also look at your agency’s FAR Supplement to see if there is further guidance in these areas.

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