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<br />City of Sunny Isles Beach |RFP Disaster Debris Management and Disposal Services 18-04-02 61 <br /> <br />(i) The actual cost of materials; and <br />(ii) Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative <br />expenses, and profit. <br />(2) Since this formula generates an open-ended contract price, a time-and-materials contract provides no <br />positive profit incentive to the contractor for cost control or labor efficiency. Therefore, each contract <br />must set a ceiling price that the contractor exceeds at its own risk. Further, the non-Federal entity <br />awarding such a contract must assert a high degree of oversight in order to obtain reasonable assurance <br />that the contractor is using efficient methods and effective cost controls. <br />(k) The non-Federal entity alone must be responsible, in accordance with good administrative practice <br />and sound business judgment, for the settlement of all contractual and administrative issues arising out <br />of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and <br />claims. These standards do not relieve the non-Federal entity of any contractual responsibilities under its <br />contracts. The Federal awarding agency will not substitute its judgment for that of the non-Federal entity <br />unless the matter is primarily a Federal concern. Violations of law will be referred to the local, state, or <br />Federal authority having proper jurisdiction. <br />[78 FR 78608, Dec. 26, 2013, as amended at 79 FR 75885, Dec. 19, 2014; 80 FR 43309, July 22, 2015] <br /> §200.319 Competition. <br />(a) All procurement transactions must be conducted in a manner providing full and open competition <br />consistent with the standards of this section. In order to ensure objective contractor performance and <br />eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, <br />statements of work, or invitations for bids or requests for proposals must be excluded from competing <br />for such procurements. Some of the situations considered to be restrictive of competition include but are <br />not limited to: <br />(1) Placing unreasonable requirements on firms in order for them to qualify to do business; <br />(2) Requiring unnecessary experience and excessive bonding; <br />(3) Noncompetitive pricing practices between firms or between affiliated companies; <br />(4) Noncompetitive contracts to consultants that are on retainer contracts; <br />(5) Organizational conflicts of interest;