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Contract Pricing and Arrangements


11.1 Contract Types. Any type of contract which is appropriate to the procurement, and which will promote the best interests of the Agency may be used, provided the cost -plus-a-percentage-of-cost and percentage-of-construction-cost methods are not used. All solicitations and contracts shall include the clauses and provisions necessary to define the rights and responsibilities of both the contractor and the Agency. For all cost reimbursement contracts, the Agency must include a written determination as to why no other contract type is suitable. Further, the contract must include a ceiling price that the contractor exceeds at its own risk.

11.2 Options. Options for additional quantities or performance periods may be included in contracts, provided that:

  • 11.2.1 The option is contained in the solicitation; 
  • 11.2.2 The option is a unilateral right of the Agency;
  • 11.2.3 The contract states a limit on the additional quantities and the overall term of the contract;
  • 11.2.4 The options are evaluated as part of the initial competition;
  • 11.2.5 The contract states the period within which the options may be exercised;
  • 11.2.6 The options may be exercised only at the price specified in or determinable from the contract; and
  • 11.2.7 The options may be exercised only if determined to be more advantageous to the Agency than conducting a new procurement.