Bill:

If I remember correctly there are no specific cost limitations placed
upon whether or not a fixed price agreement can be used.  Per FAR part
16 the criteria for utilizing Fixed Price instruments are:

a) There is adequate price competition;

(b) There are reasonable price comparisons with prior purchases of the
same or similar supplies or services made on a competitive basis or
supported by valid cost or pricing data;

(c) Available cost or pricing information permits realistic estimates
of the probable costs of performance; or

(d) Performance uncertainties can be identified and reasonable
estimates of their cost impact can be made, and the contractor is
willing to accept a firm fixed price representing assumption of the
risks involved.

For commercial item acquisitions the preference at any cost is for FFP.
 For R&D efforts though the preference is for Cost reimbursable.
Additional aspects to take into consideration are Agency, type of
effort, etc.  Furthermore the Agency in question may have more specific
requirements.

Since I am more familiar with DOD requirements, I will speak to these.
Under DFARs 235.006 the Contracting officer must make/obtain a
determination in order to utilize FFP instruments for R&D efforts over
the SAP threshold (currently $100,000.00).  Additionally, if the item is
$25M or greater the determination must be made by the Under Secretary of
Defense (Acquisition, Technology, and Logistics).

In short, although there are no specific cost limitations, for most
University efforts there are other factors which may make a FFP more
prohibitive.  Basically, this is a business decision of the Agency's
contracting officer.

Hope this helps.

Sincerely,
Brandi

Brandi Boniface
Industrial Contracts Administrator
Office of Economic Development
University of South Carolina
Byrnes International Building, 5th Floor
901 Sumter Street
Columbia, SC  29208
(803) 777-6420

fax:  (803) 777-4136

>>> xxxxxx@KUCR.KU.EDU 6/16/2004 4:42:35 PM >>>
Help! Can anyone tell me what the dollar limit is for a federal agency
issuing a fixed-price agreement to, say, a university?  I will try to
find out the answer myself, but we need an answer quickly and I thought
someone on the list might know.  Thanks for your help!

Bill Sharp
Compliance Manager/Contracts Officer
Contract Negotiations and Research Compliance
The University of Kansas Center for Research
2385 Irving Hill Road
Lawrence, KS  66045-7563
(785) 864-7430
(785) 864-5049 fax
xxxxxx@ku.edu

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