You should provide all your quotes and estimates in writing, including a detailed breakdown. This will help to avoid any disputes about what work is included in your overall price. Be sure to state clearly whether it is a quotation or an estimate. You could also set an expiry date , after which quote or estimate will no longer be valid. See prepare a written quotation and prepare a written estimate. My New Business Northern Ireland business support finder Sample templates, forms, letters, policies and checklists Licence finder Find a case study Do it online.
Price lists, estimates, quotations and tenders Difference between a quotation and an estimate. The main difference between a quotation and an estimate is that: a quotation is an agreed fixed price an estimate is approximate price that may change What is a price quotation? What is a price estimate? How to give a price quotation or estimate To work out a quote or estimate you need to know your fixed and variable costs. Printer-friendly version. Chapter 99 CAS. DOD Deviations. Subpart Parent topic: Federal Acquisition Regulation.
This part prescribes policies and procedures for the acquisition of supplies and services, including construction, research and development, and commercial items, the aggregate amount of which does not exceed the simplified acquisition threshold see 2. See part 12 for policies applicable to the acquisition of commercial items exceeding the micro-purchase threshold.
See Authorized individual means a person who has been granted authority, in accordance with agency procedures, to acquire supplies and services in accordance with this part. Governmentwide commercial purchase card means a purchase card, similar in nature to a commercial credit card, issued to authorized agency personnel to use to acquire and to pay for supplies and services.
Imprest fund means a cash fund of a fixed amount established by an advance of funds, without charge to an appropriation, from an agency finance or disbursing officer to a duly appointed cashier, for disbursement as needed from time to time in making payment in cash for relatively small amounts.
Third party draft means an agency bank draft, similar to a check, that is used to acquire and to pay for supplies and services. The purpose of this part is to prescribe simplified acquisition procedures in order to-. This policy does not apply if an agency can meet its requirement using-. If the solicitation is oral, however, information substantially identical to that in the provision shall be given to potential quoters.
Drawings and lengthy specifications can be provided off-line in hard copy or through other appropriate means. For acquisitions not expected to exceed-.
For evaluation of quotations or offers received electronically, see The order is an offer by the Government to the supplier to buy certain supplies or services upon specified terms and conditions. A contract is established when the supplier accepts the offer. In other circumstances, the supplier may indicate acceptance by furnishing the supplies or services ordered or by proceeding with the work to the point where substantial performance has occurred.
The requirement at 22 U. The FAR Council may make exceptions when it determines in writing that it is in the best interest of the Government that the enactment should apply to contracts or subcontracts not greater than the simplified acquisition threshold. The Administrator, OFPP, will include the law on the list in paragraph a of this section unless the FAR Council makes a determination that it is applicable within 60 days of receiving the petition.
While certain statutes still apply, pursuant to Public Law, the following provisions and clauses are inapplicable to contracts and subcontracts at or below the simplified acquisition threshold:. Prompt payment discounts shall not be considered in the evaluation of quotations; and. Bulk funding is a system whereby the contracting officer receives authorization from a fiscal and accounting officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a specified period of time rather than obtaining individual obligational authority on each purchase document.
Bulk funding is particularly appropriate if numerous purchases using the same type of funds are to be made during a given period. Offices maintaining additional vendor source files or listings should identify the status of each source when the status is made known to the contracting office in the following categories:. Authorized individuals do not have to obtain individual quotations for each purchase. Standing price quotations may be used if-. The contracting officer must promote competition to the maximum extent practicable to obtain supplies and services from the source whose offer is the most advantageous to the Government, considering the administrative cost of the purchase.
Unless the contract action requires synopsis pursuant to 5. Whenever practicable, request quotations or offers from two sources not included in the previous solicitation. In these cases, a separate solicitation is not required. The contracting officer must include enough information to permit suppliers to develop quotations or offers. In soliciting competition, the contracting officer shall consider the guidance in A The contracting officer may choose not to include price or cost as an evaluation factor for award when a solicitation—.
B If the contracting officer chooses not to include price or cost as an evaluation factor for the contract award, in accordance with paragraph a 2 iv A of this section, the contracting officer shall consider price or cost as one of the factors in the selection decision for each order placed under the contract. C The exception in paragraph a 2 iv A of this section shall not apply to solicitations for multiple-award contracts that provide for sole source orders pursuant to section 8 a of the Small Business Act 15 U.
The documentation should state it is covering only the portion of the acquisition which is brand-name. The requirements at Options may be included in solicitations, provided the requirements of subpart An agency should respond to inquiries received through any medium including electronic commerce if doing so would not interfere with the efficient conduct of the acquisition.
The procedures prescribed in parts 14 and 15 are not mandatory. Formal evaluation plans and establishing a competitive range, conducting discussions, and scoring quotations or offers are not required. Contracting offices may conduct comparative evaluations of offers. Evaluation of other factors, such as past performance-. B Customer surveys, and past performance questionnaire replies;.
D Any other reasonable basis. Before making award, the contracting officer must determine that the proposed price is fair and reasonable. The contracting officer may base the statement on-.
However, inclusion of a price in a price list, catalog, or advertisement does not, in and of itself, establish fairness and reasonableness of the price;. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels.
Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property except that for use in subpart Contingency operation 10 U.
Continued portion of the contract means the portion of a contract that the contractor must continue to perform following a partial termination. Contract means a mutually binding legal relationship obligating the seller to furnish the supplies or services including construction and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing.
In addition to bilateral instruments, contracts include but are not limited to awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications.
Contracts do not include grants and cooperative agreements covered by 31 U. For discussion of various types of contracts, see part Contract administration office means an office that performs-. Contract clause or "clause" means a term or condition used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award.
Contract modification means any written change in the terms of a contract see Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description but not determination of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements. Contracting activity means an element of an agency designated by the agency head and delegated broad authority regarding acquisition functions.
Contracting office means an office that awards or executes a contract for supplies or services and performs postaward functions not assigned to a contract administration office except for use in part 48, see also The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer.
A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation 48 CFR chapter 1 to administrative contracting officer or termination contracting officer does not-.
Conviction means a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere. For use in subpart Cost or pricing data 10 U. Cost or pricing data are factual, not judgmental; and are verifiable. Cost or pricing data are more than historical accounting data; they are all the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred.
They also include, but are not limited to, such factors as-. Cost sharing means an explicit arrangement under which the contractor bears some of the burden of reasonable, allocable, and allowable contract cost. Data other than certified cost or pricing data means pricing data, cost data, and judgmental information necessary for the contracting officer to determine a fair and reasonable price or to determine cost realism. Such data may include the identical types of data as certified cost or pricing data, consistent with Table of Day means, unless otherwise specified, a calendar day.
Debarment means action taken by a debarring official under 9. Delivery order means an order for supplies placed against an established contract or with Government sources. Depreciation means a charge to current operations that distributes the cost of a tangible capital asset, less estimated residual value, over the estimated useful life of the asset in a systematic and logical manner.
It does not involve a process of valuation. The term includes only that information needed to evaluate the acceptability of the product and excludes other information for operating or maintaining the product. Design-to-cost means a concept that establishes cost elements as management goals to achieve the best balance between life-cycle cost, acceptable performance, and schedule.
Under this concept, cost is a design constraint during the design and development phases and a management discipline throughout the acquisition and operation of the system or equipment.
Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations.
The servicing agency manages the indefinite-delivery contract but does not participate in the placement or administration of an order. Direct cost means any cost that is identified specifically with a particular final cost objective. Direct costs are not limited to items that are incorporated in the end product as material or labor. Costs identified specifically with a contract are direct costs of that contract.
All costs identified specifically with other final cost objectives of the contractor are direct costs of those cost objectives. Disaster Response Registry means a voluntary registry of contractors who are willing to perform debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief activities established in accordance with 6 U.
The Registry contains information on contractors who are willing to perform disaster or emergency relief activities within the United States and its outlying areas. See Drug-free workplace means the site s for the performance of work done by the contractor in connection with a specific contract where employees of the contractor are prohibited from engaging in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance.
Earned value management system means a project management tool that effectively integrates the project scope of work with cost, schedule and performance elements for optimum project planning and control. Effective date of termination means the date on which the notice of termination requires the contractor to stop performance under the contract. If the contractor receives the termination notice after the date fixed for termination, then the effective date of termination means the date the contractor receives the notice.
Electronic commerce means electronic techniques for accomplishing business transactions including electronic mail or messaging, World Wide Web technology, electronic bulletin boards, purchase cards, electronic funds transfer, and electronic data interchange.
Electronic data interchange EDI means a technique for electronically transferring and storing formatted information between computers utilizing established and published formats and codes, as authorized by the applicable Federal Information Processing Standards. Electronic Funds Transfer EFT means any transfer of funds, other than a transaction originated by cash, check, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape, for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account.
The term includes Automated Clearing House transfers, Fedwire transfers, and transfers made at automatic teller machines and point-of-sale terminals. For purposes of compliance with 31 U. Electronic Funds Transfer EFT indicator means a four-character suffix to the unique entity identifier.
The suffix is assigned at the discretion of the commercial, nonprofit, or Government entity to establish additional System for Award Management records for identifying alternative EFT accounts see subpart End product means supplies delivered under a line item of a Government contract, except for use in part 25 and the associated clauses at Energy-efficient product -.
Energy-efficient standby power devices means products that use-. Energy-savings performance contract means a contract that requires the contractor to-. Environmentally preferable means products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose.
This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product or service. Excess personal property means any personal property under the control of a Federal agency that the agency head determines is not required for its needs or for the discharge of its responsibilities.
Executive agency means an executive department, a military department, or any independent establishment within the meaning of 5 U. Facilities capital cost of money means "cost of money as an element of the cost of facilities capital" as used at 48 CFR Federally-controlled facilities means—. For example, if a department or agency leased the 10th floor of a commercial building, the Directive applies to the 10th floor only;.
Federally-controlled information system means an information system 44 U. Final indirect cost rate means the indirect cost rate established and agreed upon by the Government and the contractor as not subject to change. For cost-reimbursement research and development contracts with educational institutions, it may be predetermined; that is, established for a future period on the basis of cost experience with similar contracts, together with supporting data.
First article means a preproduction model, initial production sample, test sample, first lot, pilot lot, or pilot models. First article testing means testing and evaluating the first article for conformance with specified contract requirements before or in the initial stage of production. This term is used in conjunction with a physical point to determine-.
Unless the contract provides otherwise, the seller or consignor is responsible for the cost of shipping and risk of loss.
For use in the clause at Unless the contract provides otherwise, the buyer or consignee is responsible for the cost of shipping and risk of loss. For other types of F. Forward pricing rate agreement means a written agreement negotiated between a contractor and the Government to make certain rates available during a specified period for use in pricing contracts or modifications.
These rates represent reasonable projections of specific costs that are not easily estimated for, identified with, or generated by a specific contract, contract end item, or task.
These projections may include rates for such things as labor, indirect costs, material obsolescence and usage, spare parts provisioning, and material handling. Forward pricing rate recommendation means a rate set unilaterally by the administrative contracting officer for use by the Government in negotiations or other contract actions when forward pricing rate agreement negotiations have not been completed or when the contractor will not agree to a forward pricing rate agreement.
Freight means supplies, goods, and transportable property. Full and open competition , when used with respect to a contract action, means that all responsible sources are permitted to compete. Global warming potential means how much a given mass of a chemical contributes to global warming over a given time period compared to the same mass of carbon dioxide.
Governmentwide acquisition contract GWAC means a task-order or delivery-order contract for information technology established by one agency for Governmentwide use that is operated-. The Economy Act does not apply to orders under a Governmentwide acquisition contract. The GPE is located at www. Head of the agency see "agency head". Head of the contracting activity means the official who has overall responsibility for managing the contracting activity. Historically black college or university means an institution determined by the Secretary of Education to meet the requirements of 34 CFR HUBZone means a historically underutilized business zone that is an area located within one or more qualified census tracts, qualified nonmetropolitan counties, lands within the external boundaries of an Indian reservation, qualified base closure areas, or redesignated areas, as defined in 13 CFR Humanitarian or peacekeeping operation means a military operation in support of the provision of humanitarian or foreign disaster assistance or in support of a peacekeeping operation under chapter VI or VII of the Charter of the United Nations.
The term does not include routine training, force rotation, or stationing 10 U. Hydrofluorocarbons means compounds that contain only hydrogen, fluorine, and carbon. In writing , "writing," or "written" means any worded or numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored information.
Indirect cost means any cost not directly identified with a single final cost objective, but identified with two or more final cost objectives or with at least one intermediate cost objective. Indirect cost rate means the percentage or dollar factor that expresses the ratio of indirect expense incurred in a given period to direct labor cost, manufacturing cost, or another appropriate base for the same period see also "final indirect cost rate".
Ineligible means excluded from Government contracting and subcontracting, if appropriate pursuant to statutory, Executive order, or regulatory authority other than this regulation 48 CFR chapter 1 and its implementing and supplementing regulations; for example, pursuant to—.
Information and communication technology ICT means information technology and other equipment, systems, technologies, or processes, for which the principal function is the creation, manipulation, storage, display, receipt, or transmission of electronic data and information, as well as any associated content. Examples of ICT include but are not limited to the following: Computers and peripheral equipment; information kiosks and transaction machines; telecommunications equipment; customer premises equipment; multifunction office machines; software; applications; websites; videos; and electronic documents.
Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction in order to provide-. Information technology means any equipment, or interconnected system s or subsystem s of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.
For example, HVAC heating, ventilation, and air conditioning equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, are not information technology. Inherently governmental function means, as a matter of policy, a function that is so intimately related to the public interest as to mandate performance by Government employees. This definition is a policy determination, not a legal determination.
An inherently governmental function includes activities that require either the exercise of discretion in applying Government authority, or the making of value judgments in making decisions for the Government. Governmental functions normally fall into two categories: the act of governing, i. They also do not include functions that are primarily ministerial and internal in nature, such as building security, mail operations, operation of cafeterias, housekeeping, facilities operations and maintenance, warehouse operations, motor vehicle fleet management operations, or other routine electrical or mechanical services.
Inspection means examining and testing supplies or services including, when appropriate, raw materials, components, and intermediate assemblies to determine whether they conform to contract requirements. Insurance means a contract that provides that for a stipulated consideration, one party undertakes to indemnify another against loss, damage, or liability arising from an unknown or contingent event.
Interagency acquisition means a procedure by which an agency needing supplies or services the requesting agency obtains them from another agency the servicing agency , by an assisted acquisition or a direct acquisition. The term includes—. Labor surplus area means a geographical area identified by the Department of Labor in accordance with 20 CFR part , subpart A, as an area of concentrated unemployment or underemployment or an area of labor surplus.
Labor surplus area concern means a concern that together with its first-tier subcontractors will perform substantially in labor surplus areas. Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production, or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price. Latent defect means a defect that exists at the time of acceptance but cannot be discovered by a reasonable inspection.
Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment.
The use of the term "line item" includes "subline item," as applicable. Line item number means either a numeric or alphanumeric format to identify a line item. Major disaster , as used in 6. Major system means that combination of elements that will function together to produce the capabilities required to fulfill a mission need. The elements may include hardware, equipment, software, or any combination thereof, but exclude construction or other improvements to real property.
A system is a major system if-. Manufactured end product means any end product in product and service codes PSC , except-. Market research means collecting and analyzing information about capabilities within the market to satisfy agency needs.
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