11.0632 Types of Contracts.

Cite as [A.S.A.C. § 11.0632]

A. Use of cost-plus-a-percentage-of-cost and percentage of construction cost methods of contracting are prohibited.

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

C. A cost reimbursement contract may be used when the LBJ 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 LBJ for contingencies that never occur; or

3. Use of the cost reimbursement contract is likely to be less costly to LBJ

H. Prohibition against contingent fees as required by subsection 10.03(f). Prohibition against contingent fees as required by subsection 10.03(g).

I. Prohibition against contingent fees as required by subsection 10.03(I).

History: Rule 8, eff. March 3, 1999.