TYPES OF A-E AND CONSTRUCTION CONTRACTS:
1.6.1 Firm Fixed Price (Lump Sum) Contracts: The contract price includes
all items of work identified in the "Scope" and is not subject to
adjustment. If the A-E over-runs his contract price, he suffers a loss.
If he under-runs the price, he reaps a profit equal to the under-run. This
type of contract is preferred by the Government because it places maximum
risk on the A-E.
1.6.2 Indefinite-Quantity (IQ) Contracts: These contracts contain
negotiated labor, overhead, profit, and other rates which are later used to
negotiate individual task orders. Also, they differ from conventional time
and materials contracts in that individual labor categories carry no
estimated manhours and further in that task orders are used to order work
in lieu of SF Form 30's. They are usually one year in length and
$1,000,000 in maximum value, with an option to extend the contract for an
additional year. There are other IQ contracts with larger dollar amount
and extended lengths up to 5 years. The Government may exercise these
options, subject to the same fee restrictions as the basic year.
1.6.3 Simplified Acquisition Procedures (SAP): The FAR and DFARS define a
SAP as an acquisition not in excess of $100,000. SAP follow simplified
procedures which are complicated somewhat by existing national laws and
departmental regulations. Contracts are synopsized in the CBD if they
1.6.4 Sole Source Contracts: Every effort is made to plan and write
contracts so as to avoid a sole source contract. Sole source contracts
require approvals. Notwithstanding the above, all sole source contracts
are synopsized in the CBD if they exceed $25,000.
Non-appropriated Funded (NAF) Contracts:
a. All FAR procedures including synopsis, slate, selection,
negotiation and award apply to NAF funded A-E contracts. Waivers to
certain FAR provisions are available in limited circumstances from
NAVFACENGCOM. If any deviations or waivers are contemplated, coordinate
with the Contracting Officer as part of project planning.
Small business restrictions and approval requirements do not
22.214.171.124 NAF Projects: Generally includes exchanges, commissaries, clubs,
bowling alleys, golf courses, etc.
1.6.6 Design/Build. There are different varieties of design/build
contracts. However, all design/build contracts share one single important
A DESIGN/BUILD CONTRACT HAS ONLY ONE CONTRACTOR WHO DOES BOTH THE DESIGN
AND THE CONSTRUCTION OF A FACILITY
Refer to enclosures (1) and (2) of Appendix Y for samples of two types of
Design/Build projects listed below, and a sample "Construction Contractor's
A-E Cover Sheet" for Design/Build RFP projects. This cover sheet is not to
be confused with the sample "A-E Cover Sheet" required for PACNAVFACENGCOM