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<br />City of Sunny Isles Beach | RFP Bella Vista Park Dock Reconstruction 19-07-01 38 <br /> <br />unable or appears to be unable to be impartial in conducting a procurement action involving a related <br />organization. <br />(d) The non-Federal entity's procedures must avoid acquisition of unnecessary or duplicative items. <br />Consideration should be given to consolidating or breaking out procurements to obtain a more <br />economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, <br />and any other appropriate analysis to determine the most economical approach. <br /> <br />(e) To foster greater economy and efficiency, and in accordance with efforts to promote cost-effective <br />use of shared services across the Federal Government, the non-Federal entity is encouraged to enter into <br />state and local intergovernmental agreements or inter-entity agreements where appropriate for <br />procurement or use of common or shared goods and services. <br /> <br />(f) The non-Federal entity is encouraged to use Federal excess and surplus property in lieu of purchasing <br />new equipment and property whenever such use is feasible and reduces project costs. <br /> <br />(g) The non-Federal entity is encouraged to use value engineering clauses in contracts for construction <br />projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a <br />systematic and creative analysis of each contract item or task to ensure that its essential function is <br />provided at the overall lower cost. <br /> <br />(h) The non-Federal entity must award contracts only to responsible contractors possessing the ability to <br />perform successfully under the terms and conditions of a proposed procurement. Consideration will be <br />given to such matters as contractor integrity, compliance with public policy, record of past performance, <br />and financial and technical resources. See also §200.213 Suspension and debarment. <br /> <br />(i) The non-Federal entity must maintain records sufficient to detail the history of procurement. These <br />records will include, but are not necessarily limited to the following: rationale for the method of <br />procurement, selection of contract type, contractor selection or rejection, and the basis for the contract <br />price. <br /> <br />(j)(1) The non-Federal entity may use a time and materials type contract only after a determination that <br />no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its <br />own risk. Time and materials type contract means a contract whose cost to a non-Federal entity is the <br />sum of: <br /> <br />(i) The actual cost of materials; and <br /> <br />(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative <br />expenses, and profit. <br /> <br />(2) Since this formula generates an open-ended contract price, a time-and-materials contract provides <br />no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each