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STANDARD PROCUREMENT POLICY& FEDERAL EMERGENCY CONTRACTING <br /> • The City must award only to a responsible contractor. <br /> • The City must complete a cost or price analysis to determine if the cost or price is <br /> fair and reasonable. <br /> • The City may not use cost-plus-percentage-of-cost contracting. <br /> • If the City uses a time and materials or time and equipment contract, it must <br /> document its determination that no other contract type was suitable, include a <br /> ceiling price in the contract that the contractor exceeds at its own risk, and assert a <br /> high degree of oversight to ensure that the contractor is using efficient methods and <br /> effective cost controls. <br /> D. If the justification relates to lack of competition, the Contract Manager shall document the <br /> justification for and why the City moved forward with a noncompetitive award without <br /> cancelling the solicitation and resoliciting offers or bids. Evaluation of the sufficiency of <br /> publication of the solicitation to an adequate number of firms should be documented. <br /> Communications with firms solicited to find out why they did not submit offers or bids <br /> should be documented. Evaluation of whether to cancel the solicitation, change that <br /> specification to allow for more bids or offers, and re-solicit bids or offers should be <br /> documented. Any decision to move forward with an award with a restrictive specification <br /> should be documented, including why the restrictive specification or delivery requirement <br /> was necessary and could not be modified to allow additional competition. <br /> E. For any proposed contract with an estimated value of more than the simplified acquisition <br /> threshold, which pursuant to 41 U.S.C. §403(1) is currently listed as$250,000, procurement <br /> using the non-competitive proposals method requires approval by the City's attorney and <br /> that the non-competitive proposals method is appropriate under the exception(s) as <br /> identified above. <br /> 10.7 TIME AND MATERIALS OR TIME AND EQUIPMENT CONTRACTS <br /> A time and materials (T&M) or time and equipment (T&E) contract is a contract under which the <br /> cost to the City is the sum of the actual costs of materials or equipment and direct labor hours <br /> charged at fixed hourly rates that reflect wages,general and administrative expenses, and <br /> profit. <br /> In Federal contracting, these types of contracts are generally discouraged, but may be <br /> unavoidable in certain circumstances. Thus,the City will award and utilize time and equipment <br /> type Federal contracts only after a determination that no other contract is suitable and if the <br /> contract includes a ceiling price that the contractor exceeds at its own risk. The City will assert a <br /> high degree of oversight in order to obtain reasonable assurance that the contractor is using <br /> efficient methods and effective cost controls. For any T&M or T&E Federal contracts, the <br /> Procurement File must include a completed Determination of Suitability of Time & Materials <br /> Contract including the following: <br /> A. Written determination that no other contract type is suitable with supporting <br /> documentation regarding the emergency or exigent circumstances that exists, and other <br /> factors considered <br /> Page 50 of 57 <br />