JULY 2005
SOLICITATION FOR OFFERS
OUTPATIENT CLINIC
SFO NO. V101-183R-xxx-xxx-xx
[INSERT LOCATION OF FACILITY]
request, shall be in legible form, original and two copies, with an itemized breakdown that will include
material, quantities, unit prices, labor costs (separated into trades), construction equipment, etc. (Labor
costs are to be identified with specific material placed or operation performed.) The contractor must obtain
and furnish with a proposal an itemized breakdown as described above, signed by each subcontractor
participating in the change regardless of tier. When requested by the Contracting Officer, the contractor
and each subcontractor participating in the change regardless to tier shall execute a Certificate of Current
Cost or Pricing Data in accordance with FAR 15-406-2. For proposals over 0,000, the cost or pricing
data shall be submitted in accordance with the instructions in Table 15-2 of FAR 15-403-5 in the format
indicated for "Modifications" //or other format acceptable to the Contracting Officer//.. No itemized
breakdown will be required for proposals amounting to less than
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,000.
3.8.2.2 TENTATIVE PRICING:
When the necessity to proceed with a change does not allow sufficient time to negotiate a modification or
because of failure to reach an agreement, the Contracting Officer may issue a change order instructing the
contractor to proceed on the basis of a tentative price based on the best estimate available at the time,
with the firm price to be determined later. Furthermore, when the change order is issued, the contractor
shall submit a proposal for cost of changes in work within 30 calendar days.
3.8.2.3 SETTLEMENT BY DETERMINATION:
The Contracting Officer will consider issuing a settlement by determination to the contract, if the
contractor's proposal required by Paragraphs (a) and (b) of this clause is not received within 30 calendar
days, or if agreement has not been reached.
3.8.2.4 ALLOWANCES FOR OVERHEAD AND PROFIT:
Allowances not to exceed 10 percent each for overhead and profit for the party performing the work will be
based on the value of labor, material, and use of construction equipment required to accomplish the
change. As the value of the change increases, a declining scale will be used in negotiating the percentage
of overhead and profit. Allowable percentages on changes will not exceed the following: 10 percent
overhead and 10 percent profit on the first ,000; 7-1/2 percent overhead and 7-1/2 percent profit on the
next ,000; 5 percent overhead and 5 percent profit on balance over ,000. Profit shall be computed
by multiplying the profit percentage by the sum of the direct costs and computed overhead costs.
3.8.2.5 ALLOWABLE FEE ON CHANGES:
The prime contractor's or upper-tier subcontractor's fee on work performed by lower-tier subcontractors
will be based on the net increased cost to the prime contractor or upper-tier subcontractor, as applicable.
Allowable fee on changes will not exceed the following: 10 percent fee on the first ,000; 7-1/2 percent
fee on the next ,000; and 5 percent fee on balance over ,000.
3.8.2.6 MULTIPLE TIERS:
Not more than four percentages, none of which exceed the percentages shown above, will be allowed
regardless of the number of tiers of subcontractors.
3.8.2.7 CREDIT ITEMS:
Where the contractor's or subcontractor's portion of change involves credit terms, such items must be
deducted prior to adding overhead and profit for the party performing the work. The contractor's fee is
limited to the net increase to contractor of subcontractors' portions of cost computed in accordance
herewith.
Where a change involves credit items only, a proper measure of the amount of downward adjustment in
the contract price is the reasonable cost to the contractor if he/she had performed the deleted work. A
reasonable allowance for overhead and profit are properly includable as part of the downward adjustment
for a deductive change. The amount of such allowance is subject to negotiation.
Part I: Basic Solicitation Requirements Page 26 of 169
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