[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR48]



[Page 918]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 48_VALUE ENGINEERING--Table of Contents

 

                  Subpart 48.1_Policies and Procedures

 

48.104-4  Sharing alternative--no-cost settlement method.



    In selecting an appropriate mechanism for incorporating a VECP into 

a contract, the contracting officer shall analyze the different 

approaches available to determine which one would be in the Government's 

best interest. Contracting officers should balance the administrative 

costs of negotiating a settlement against the anticipated savings. A no-

cost settlement may be used if, in the contracting officer's judgment, 

reliance on other VECP approaches likely would not be more cost-

effective, and the no-cost settlement would provide adequate 

consideration to the Government. Under this method of settlement, the 

contractor would keep all of the savings on the instant contract, and 

all savings on its concurrent contracts only. The Government would keep 

all savings resulting from concurrent contracts placed with other 

sources, savings from all future contracts, and all collateral savings. 

Use of this method must be by mutual agreement of both parties for 

individual VECPs.



[63 FR 34079, June 22, 1998. Redesignated at 64 FR 51847, Sept. 24, 

1999]