Types of TOs Sample Clauses
The "Types of TOs" clause defines the various categories or forms of Task Orders (TOs) that may be issued under a master agreement or contract. It typically outlines distinctions such as fixed-price, time-and-materials, or cost-reimbursement TOs, specifying which types are permitted and under what circumstances each may be used. By clearly delineating the types of TOs, this clause ensures both parties understand the contractual mechanisms available for ordering work, thereby reducing ambiguity and helping to allocate risk appropriately.
Types of TOs. The types of TOs that are authorized for use under this Multiple Award ID/IQ vehicle are Firm Fixed Price (FFP) with reimbursable line items for Other Direct Cost, Time and Material (T&M), and/or Labor Hour (LH).
(1) The preferred TO type is FFP; however, in the event that it is not possible to accurately estimate the extent or the duration of the work to be performed with any reasonable degree of confidence, a determination may be made by the TOCO to use a T&M or LH TO type. T&M and LH TO types may be utilized at the discretion of the TOCO if properly justified, documented, and approved.
(2) TOs may include award/incentive fee provisions if properly justified and approved at the TO level. TOs may be awarded as bilateral orders. In emergency situations or when a bilateral TO cannot otherwise be issued in a timely manner, the Government has the right to issue unilateral TOs on an undefinitized basis. Any such undefinitized unilateral TO shall be definitized as quickly as possible in accordance with DFARS 252.217-7027 (Contract Definitization) utilizing a “not to exceed” ceiling amount provided by the Government in the TO.