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Cities of Dublin and Pleasanton | Disaster Debris Management Plan | 2022 <br />100 <br /> <br />lease versus purchase alternatives, and any other appropriate analysis to determine the <br />most economical approach. <br /> <br />(e) To foster greater economy and efficiency, and in accordance with efforts to promote cost- <br />effective use of shared services across the Federal Government, the non-Federal entity <br />is encouraged to enter into state and local intergovernmental agreements or inter-entity <br />agreements where appropriate for procurement or use of common or shared goods and <br />services. <br /> <br />(f) The non-Federal entity is encouraged to use Federal excess and surplus property in lieu <br />of purchasing new equipment and property whenever such use is feasible and reduces <br />project costs. <br /> <br />(g) The non-Federal entity is encouraged to use value engineering clauses in contracts for <br />construction projects of sufficient size to offer reasonable opportunities for cost <br />reductions. Value engineering is a systematic and creative analysis of each contract item <br />or task to ensure that its essential function is provided at the overall lower cost. <br /> <br />(h) The non-Federal entity must award contracts only to responsible contractors possessing <br />the ability to perform successfully under the terms and conditions of a proposed <br />procurement. Consideration will be given to such matters as contractor integrity, <br />compliance with public policy, record of past performance, and financial and technical <br />resources. See also §200.213 Suspension and debarment. <br /> <br />(i) The non-Federal entity must maintain records sufficient to detail the history of <br />procurement. These records will include, but are not necessarily limited to the following: <br />rationale for the method of procurement, selection of contract type, contractor selection <br />or rejection, and the basis for the contract price. <br /> <br />(j)(1) The non-Federal entity may use a time and materials type contract only after a <br />determination that no other contract is suitable and if the contract includes a ceiling price <br />that the contractor exceeds at its own risk. Time and materials type contract means a <br />contract whose cost to a non-Federal entity is the sum of: <br />(i) The actual cost of materials; and <br />(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and <br />administrative expenses, and profit. <br /> <br />(2) Since this formula generates an open-ended contract price, a time-and-materials <br />contract provides no positive profit incentive to the contractor for cost control or labor <br />efficiency. Therefore, each contract must set a ceiling price that the contractor exceeds <br />at its own risk. Further, the non-Federal entity awarding such a contract must assert a <br />high degree of oversight in order to obtain reasonable assurance that the contractor is <br />using efficient methods and effective cost controls. <br /> <br />(k) The non-Federal entity alone must be responsible, in accordance with good administrative <br />practice and sound business judgment, for the settlement of all contractual and <br />administrative issues arising out of procurements. These issues include, but are not