Mississippi Administrative Code
Title 12 - Finance and Administration
Part 6 - Office of Purchasing, Travel and Fleet Management
Chapter 3 - Source Selection and Contract Formation
Sec2 12-6-3.116 - Types of Contracts
Sec2 12-6-3.116.03 - Policy Regarding Selection of Contract Types
Section 12-6-3.116.03.1 - General
Current through September 24, 2024
The selection of an appropriate contract type depends on factors such as the nature of the commodities or equipment to be procured, the uncertainties which may be involved in contract performance, and the extent to which the State or the contractor is to assume the risk of the cost of performance of the contract. Contract types differ in the degree of responsibility assumed by the contractor.
The objective when selecting a contract type is to obtain the best value in needed commodities or equipment in the time required and at the lowest cost or price to the State. In order to achieve this objective, the Agency Procurement Officer, before choosing a contract type, should review those elements of the procurement which directly affect the cost, time, risk, and profit incentives bearing on the performance.
Among the factors to be considered in selecting any type of contract are:
(1) The type and complexity of the commodities or equipment item being procured;
(2) The difficulty of estimating performance costs such as the inability of the State to develop definitive specifications, to identify the risks to the contractor inherent in the nature of the work to be performed, or otherwise to establish clearly the requirements of the contract;
(3) The administrative costs to both parties;
(4)The degree to which the State must provide technical coordination during the performance of the contract;
(5)The effect of the choice of the type of contract on the amount of competition to be expected;
(6) The stability of material or commodity market prices or wage levels;
(7) The urgency of the requirement; and
(8) The length of contract performance.
Commentary
It is self-defeating for the State to select a type of contract that would place an unreasonable economic risk on the contractor, since such action may tend to jeopardize satisfactory performance of the contract.
