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<br />City of Sunny Isles Beach |Request for Proposals Disaster Debris Monitoring No. 18-04-03 51 <br /> <br />the contractor exceeds at its own risk. Time and materials type contract means a contract whose <br />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 administrative <br />expenses, and profit. <br />(2) Since this formula generates an open-ended contract price, a time-and-materials contract <br />provides no positive profit incentive to the contractor for cost control or labor efficiency. <br />Therefore, each contract must set a ceiling price that the contractor exceeds at its own risk. <br />Further, the non-Federal entity awarding such a contract must assert a high degree of oversight <br />in order to obtain reasonable assurance that the contractor is using efficient methods and <br />effective cost controls. <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 administrative <br />issues arising out of procurements. These issues include, but are not limited to, source evaluation, <br />protests, disputes, and claims. These standards do not relieve the non-Federal entity of any <br />contractual responsibilities under its contracts. The Federal awarding agency will not substitute <br />its judgment for that of the non-Federal entity unless the matter is primarily a Federal concern. <br />Violations of law will be referred to the local, state, or 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, <br />2015] <br /> §200.319 Competition. <br />(a) All procurement transactions must be conducted in a manner providing full and open <br />competition consistent with the standards of this section. In order to ensure objective contractor <br />performance and eliminate unfair competitive advantage, contractors that develop or draft <br />specifications, requirements, statements of work, or invitations for bids or requests for proposals <br />must be excluded from competing for such procurements. Some of the situations considered to <br />be restrictive of competition include but are 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;