[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 48CFR316.603-70]



[Page 49]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 316_TYPES OF CONTRACTS--Table of Contents

 

   Subpart 316.6_Time-and-Materials, Labor-Hour, and Letter Contracts

 

Sec. 316.603-70  Information to be furnished when requesting authority to 

issue a letter contract.



    The following information should be included by the contracting 

officer in any memorandum requesting approval to issue a letter 

contract:

    (a) Name and address of proposed contractor.

    (b) Location where contract is to be performed.

    (c) Contract number, including modification number, if possible.

    (d) Brief description of work and services to be performed.

    (e) Performance or delivery schedule.

    (f) Amount of letter contract.

    (g) Estimated total amount of definitized contract.

    (h) Type of definitive contract to be executed (fixed price, cost-

reimbursement, etc.)

    (i) Statement of the necessity and advantage to the Government of 

the use of the proposed letter contract.

    (j) Statement of percentage of the estimated cost that the 

obligation of funds represents. In rare instances where the obligation 

represents 50 percent or more of the proposed estimated cost of the 

acquisition, a justification for that obligation must be included which 

would indicate the basis and necessity for the obligation (e.g., the 

contractor requires a large initial outlay of funds for major 

subcontract awards or an extensive purchase of materials to meet an 

urgent delivery requirement). In every case, documentation must assure 

that the amount to be obligated is not in excess of an amount reasonably 

required to perform the work.

    (k) Period of effectiveness of a proposed letter contract. If more 

than 180 days, complete justification must be given.

    (l) Statement of any substantive matters that need to be resolved.