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PART 2116 - TYPES OF CONTRACTS | Acquisition.GOV
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block-agov-nondita-regulation-title-block"> <div class="nopadding"> <h2 class="non-dita-regulation-title">Life Insurance Federal Acquisition Regulations</h2> </div> </div> <div id="block-regulationpageblock" class="block block-agov-browse block-agov-regulation-page-block"> <div class="nextprev"><a href="/lifar/2115.404-71-profit-analysis-factors." class="docprevious docprevround" title="Previous" aria-label="Previous">芦 Previous</a><a href="/lifar/subpart-2116.1-selecting-contract-types" class="docnext docnextround" title="Next" aria-label="Next">Next 禄</a></div> <div class="regulation-content"> <article role="article" aria-labelledby="ariaid-title1"><article class="nested0" aria-labelledby="ariaid-title1" id="Part_2116_T48_6074112"> <h1 class="title topictitle1" id="ariaid-title1"> <span class="ph autonumber">PART 2116</span> - TYPES OF CONTRACTS</h1> <div class="body"> <p class="p"> <span class="ph">Authority: </span> 5 U.S.C. 8709; 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301. </p> <p class="p"> <span class="ph">Source: </span> 58 FR 40376, July 28, 1993, unless otherwise noted. </p> <p class="p"><span> </span> <a class="xref fm:TOC" href="/lifar/part-2116-types-contracts#Subpart_2116_1_T48_60741121" title="Subpart 2116.1 - Selecting Contract Types" aria-label="Subpart 2116.1 - Selecting Contract Types. Link 0">Subpart 2116.1 - Selecting Contract Types</a> </p> <p class="p"><span> </span> <a class="xref fm:TOC" href="/lifar/part-2116-types-contracts#Section_2116_105_T48_6074112111" title="2116.105 Solicitation provision." aria-label="2116.105 Solicitation provision.. Link 1">2116.105 Solicitation provision.</a> </p> <p class="p"><span> </span> <a class="xref fm:TOC" href="/lifar/part-2116-types-contracts#Subpart_2116_2_T48_60741122" title="Subpart 2116.2 - Fixed-Price Contracts" aria-label="Subpart 2116.2 - Fixed-Price Contracts. Link 2">Subpart 2116.2 - Fixed-Price Contracts</a> </p> <p class="p"><span> </span> <a class="xref fm:TOC" href="/lifar/part-2116-types-contracts#Section_2116_270_T48_6074112211" title="2116.270 FEGLI Program contracts." aria-label="2116.270 FEGLI Program contracts.. Link 3">2116.270 FEGLI Program contracts.</a> </p> <p class="p"><span> </span> <a class="xref fm:TOC" href="/lifar/part-2116-types-contracts#Section_2116_270_1_T48_6074112212" title="2116.270-1 Contract clauses." aria-label="2116.270-1 Contract clauses.. Link 4">2116.270-1 Contract clauses.</a> </p> </div> <nav role="navigation" class="related-links"><div class="familylinks"><div class="parentlink"><strong>Parent topic:</strong> <a class="link String2Xref" href="/lifar/subchapter-c-contracting-methods-and-contract-types" title="SUBCHAPTER C - CONTRACTING METHODS AND CONTRACT TYPES" aria-label="SUBCHAPTER C - CONTRACTING METHODS AND CONTRACT TYPES. Link 5">SUBCHAPTER C - CONTRACTING METHODS AND CONTRACT TYPES</a></div></div></nav><article class="topic nested1 SubPart" aria-labelledby="ariaid-title2" id="Subpart_2116_1_T48_60741121"> <h2 class="title topictitle2 Subpart" id="ariaid-title2"> <span class="ph autonumber">Subpart 2116.1</span> - Selecting Contract Types</h2> <article class="topic concept nested2 Section" aria-labelledby="ariaid-title3" id="Section_2116_105_T48_6074112111"> <h3 class="title topictitle3" id="ariaid-title3"> <span class="ph autonumber">2116.105</span> Solicitation provision.</h3> <div class="body conbody"> <p class="p P">FAR 16.105 has no practical application because the statutory provisions of 5 U.S.C. chapter 87 obviate the issuance of solicitations. </p> </div> </article> </article> <article class="topic nested1 SubPart" aria-labelledby="ariaid-title4" id="Subpart_2116_2_T48_60741122"> <h2 class="title topictitle2 Subpart" id="ariaid-title4"> <span class="ph autonumber">Subpart 2116.2</span> - Fixed-Price Contracts</h2> <article class="topic concept nested2 Section" aria-labelledby="ariaid-title5" id="Section_2116_270_T48_6074112211"> <h3 class="title topictitle3" id="ariaid-title5"> <span class="ph autonumber">2116.270</span> FEGLI Program contracts.</h3> <div class="body conbody"> <p class="p P">FEGLI Program contracts are fixed price with limited cost redetermination plus fixed fee. The premium paid to the Contractor is mutually agreed upon by OPM and the Contractor and is based on an estimate of benefits and administrative costs, plus the fixed service or risk charge, and is determined annually. Claims costs, including benefits and administrative expenses, in excess of premiums are paid up to the amount in the Employees' Life Insurance Fund. Payment for costs exceeding the amount in the Fund are the responsibility of the Contractor and reinsurers. The fee is fixed at the inception of each contract year. The fee does not vary with the actual costs but may be adjusted as a result of changes in the work to be performed under the contract. The fee is in the form of either a risk charge or a service charge. </p> <p class="p List1">(a) <em class="ph i">Risk charge.</em> The risk charge will be determined as prescribed in 5 U.S.C. 8711(d) and section 2115.404-70 of this chapter. It will consist of a negotiated amount which will reflect the risk assumed by the Contractor and the reinsurers and may be adjusted as a result of increased or decreased risk under the contract. When the applicable fee is a risk charge, no service charge will be paid for the same period of time. </p> <p class="p List1">(b) <em class="ph i">Service charge.</em> The amount of the service charge will be determined using a weighted guidelines structured approach in accordance with section 2115.404-71 of this chapter and negotiated with the Contractor at the beginning of the contract term. When the applicable fee is a service charge, no risk charge will be paid for the same period of time. </p> </div> </article> <article class="topic concept nested2 Section" aria-labelledby="ariaid-title6" id="Section_2116_270_1_T48_6074112212"> <h3 class="title topictitle3" id="ariaid-title6"> <span class="ph autonumber">2116.270-1</span> Contract clauses.</h3> <div class="body conbody"> <p class="p List1">(a) The clause at 2152.216-70 shall be inserted in all FEGLI Program contracts when a risk charge is negotiated. </p> <p class="p List1">(b) The clause at 2152.216-71 shall be inserted in all FEGLI Program contracts when a service charge is negotiated. </p> </div> </article> </article> </article> </article> </div> <div class="nextprev"><a href="/lifar/2115.404-71-profit-analysis-factors." class="docprevious docprevround" title="Previous" aria-label="Previous">芦 Previous</a><a href="/lifar/subpart-2116.1-selecting-contract-types" class="docnext docnextround" title="Next" 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