Laserfiche WebLink
Page 22 of 51 <br />(h) The non -Federal entity must award contracts only to responsible contractors possessing <br />the ability to perform successfully under the terms and conditions of a proposed <br />procurement. Consideration will be given to such matters as contractor integrity, <br />compliance with public policy, record of past performance, and financial and technical <br />resources. See also 200.212 Suspension and debarment. <br />(i) The non -Federal entity must maintain records sufficient to detail the history of <br />procurement. These records will include, but are not necessarily limited to the following: <br />rationale for the method of procurement, selection of contract type, contractor selection <br />or rejection, and the basis for the contract price. <br />G) <br />(1) The non -Federal entity may use a time and materials type contract only after a <br />determination that no other contract is suitable and if the contract includes a <br />ceiling price that the contractor exceeds at its own risk. Time and materials type <br />contract means a contract whose cost to a non -Federal entity is the sum o£(i) The <br />actual cost of materials; and <br />(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and <br />administrative expenses, and profit. <br />(2) Since this formula generates an open-ended contract price, a time -and -materials <br />contract provides no positive profit incentive to the contractor for cost control or <br />labor efficiency. Therefore, each contract must set a ceiling price that the contractor <br />exceeds at its own risk. Further, the non -Federal entity awarding such a contract must <br />assert a high degree of oversight in order to obtain reasonable assurance that the <br />contractor is using efficient methods and effective cost controls. <br />(k) The non -Federal entity alone must be responsible, in accordance with good administrative <br />practice and sound business judgment, for the settlement of all contractual and <br />administrative issues arising out of procurements. These issues include, but are not <br />limited to, source evaluation, protests, disputes, and claims. These standards do not <br />relieve the non -Federal entity of any contractual responsibilities under its contracts. The <br />Federal awarding agency will not substitute its judgment for that of the non -Federal <br />entity unless the matter is primarily a Federal concern. Violations of law will be referred <br />to the local, state, or Federal authority having proper jurisdiction. <br />§200.319 Competition. <br />(a) All procurement transactions for the acquisition of property or services required under a <br />Federal award must be conducted in a manner providing full and open competition <br />consistent with the standards of this section and §200.320. <br />(b) In order to ensure objective contractor performance and eliminate unfair competitive <br />advantage, contractors that develop or draft specifications, requirements, statements of <br />work, or invitations for bids or requests for proposals must be excluded from competing <br />R22AP00055 Agreement Template <br />City of Santa Ana (0112021) <br />