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10.0234 Types of Contracts.

Cite as [A.S.A.C. § 10.0234]

(a) Use of a cost-plus-a-percentage-of-cost and percentage of construction cost method of contacting are prohibited.

(b) Normally, a firm-fixed-priced contact shall be used unless use of a cost reimbursement contract is justified under subsection (c) below.

(c) A cost reimbursement contracts may be used when the chief procurement officer determines in writing that:

(1) Uncertainties in the work to be performed make the cost of performance too difficult to estimate with the degree of accuracy required for a firm-fixed-price contract.

(2) Use of a firm-fixed-price contract could seriously affect the contractor’s financial stability or result in payment by the government for contingencies that never occur; or

(3) Use of a cost reimbursement contract is likely to be less costly to the government than any other type due to the nature of the work to be performed under the contract.

(d) The chief procurement officer shall develop, issue, and maintain procedures for the preparation of contract documents.

History: Rule 5-84, eff 11 Jul 84, (part).