provides, under circumstances specified in the contract, for an adjustment in price that is not based on cost to the contractor; or (b) an adjustment is required by law. “Fixed price contract with price adjustment” means a fixed price contract that provides for an upward or downward revision of price, precisely described in the contract, that: (a) is based on the consumer price index or another commercially acceptable index, source, or formula; and (b) is not based on a percentage of the cost to the contractor. “Indefinite quantity contract” means a fixed price contract that both (a) is for an indefinite amount of procurement items to be supplied as ordered by the District; and (b) either does not require a minimum purchase amount or provides a maximum purchase limit. “Labor hour contract” is a contract under which the supplies and materials are not provided by, or through, the contractor and the contractor is paid a fixed rate that includes the cost of labor, overhead, and profit for a specified number of labor hours or days. “Multiple award contracts” means a procurement process resulting in the award of a contract to more than one person, which may be for an indefinite quantity of a procurement item. “Multiyear contract” means a contract that extends beyond a one-year period, including a contract that permits renewal of the contract, without competition, beyond the first year of the contract. “Requirements contract” means a contract: (a) under which a contractor agrees to provide the District’s entire requirements for certain procurement items at prices specified in the contract during the contract period; and (b) that either does not require a minimum purchase amount or provides a maximum purchase limit. Utah Code § 63G-6a-103 (2019) Utah Admin. Rules R33-12-301(1) (June 21, 2017)
1.1018.02 PERMISSIBLE AND IMPERMISSABLE TYPES OF CONTRACTS Issue Date: 5/8/14 Updated: 3/12/20 CBG
Except as otherwise provided in this policy, and subject to any rules made by the Procurement Policy Board, the District may use any type of contract that will promote its best interests. However, before the District uses any type of contract other than a firm fixed price contract, the Procurement Officer must first make a written determination that: 1. the proposed contractor’s accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated; 2. the proposed contractor’s accounting system is adequate to allocate costs in accordance with generally accepted accounting principles; and 3. the use of a specified type of contract, other than a firm fixed price contract, is in the best interest of the District, taking into consideration the following criteria: a. the type and complexity of the procurement item; b. the difficulty of estimating performance costs at the time the contract is entered into, due to factors that may include: i. the difficulty of determining definitive specifications;
Made with FlippingBook flipbook maker