2401.1 When procurement is by competitive sealed bids, the contracting officer shall use either a firm-fixed-price contract or a fixed-price contract with economic price adjustment. The type of contract to be used shall be determined prior to solicitation, and the solicitation shall inform bidders of the type of contract that will be used.

2401.2 Except when procurement is by competitive sealed bids under § 2401.1, the contracting officer may use any type of contract approved for use under this chapter, or combination of types, that will promote the best interests of the District.

2401.3 The contracting officer shall use a firm-fixed-price contract when the risk involved is minimal (or can be predicted with an acceptable degree of certainty) and when fair and reasonable prices can be established. However, if a reasonable basis for firm-fixed pricing does not exist, the contracting officer may consider other contract types, or combination of types, that will appropriately link profit to contractor performance, except as limited by § 2401.1.

2401.4 Except as limited in § 2401.1, when deciding which contract type (or combination of types) to use, the contracting officer shall give preference to contract types in the following order:

(a) Fixed-price;

(b) Fixed-price incentive;

(c) Cost-plus-incentive-fee;

(d) Cost-plus-fixed-fee;

(e) Cost-reimbursement; and

(f) Other types.

2401.5 The contracting officer shall avoid continued use of a cost-reimbursement or time-and-materials contract after experience provides a basis for firmer pricing.

2401.6 The contracting officer shall include documentation in each contract file to show why the particular contract type was selected, except for the following procurements:

(a) Small purchases other than cost-reimbursement contracts; and

(b) Repetitive purchases on a firm-fixed-price basis.

SOURCE: Final Rulemaking published at 35 DCR 1554 (February 26, 1988).