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- When selecting a contract type, consider the following factors according to the Federal Acquisition Regulation (FAR)12:
- Type and complexity of the requirement
- Urgency of the requirement
- Period of performance or length of production run
- Contractor’s technical capability and financial responsibility
- Concurrent contracts
- Price competition
- Adequacy of the contractor’s accounting system
- Programmatic, performance, and financial factors
- Negotiating prices and contract type together to achieve reasonable contractor risk and incentive for efficient performance3.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The Federal Acquisition Regulation (FAR), Subpart 16.104, includes the following factors to consider in selecting contract type: Type and complexity of the requirement; Urgency of the requirement; Period of performance or length of production run; Contractor’s technical capability and financial responsibility; Concurrent contracts;www.dau.edu/sites/default/files/Migrated/ToolAttac…Highlights of consideration factors as prescribed in FAR 16.104 when selecting the appropriate contract type include the following:
- Price competition. ...
- Combining contract types: A contract may use multiple contract types. ...
www.dau.edu/acquipedia-article/contract-typesNegotiating the contract type and negotiating prices are closely related and should be considered together. The objective is to negotiate a contract type and price (or estimated cost and fee) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance.www.acquisition.gov/far/16.103 16.104 Factors in selecting contract types. | Acquisition.GOV
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