Contract Types
Any type of contract which is appropriate to the procurement, and which will promote the best interests of Ripley Housing Authority may be used, provided the cost-plus-a-percentage-of-cost and percentage-of-construction-cost methods are not used. All solicitations and contracts shall include the clauses and provisions necessary to define the rights and responsibilities of both the contractor and the PHA.
For all cost-reimbursement contracts, the PHA must include a written determination as to why no other contract type is suitable. Further, the contract must include a ceiling price that the contractor exceeds at its own risk.
Options
Options for additional quantities or performance periods may be included in contracts, provided that:
- The option is contained in the solicitation;
- The option is a unilateral right of the PHA;
- The contract states a limit on the additional quantities and the overall term of the contract;
- The options are evaluated as part of the initial competition;
- The contract states the period within which the options may be exercised;
- The options may be exercised only at the price specified in or reasonably determinable from the contract; and
- The options may be exercised only if determined to be more advantageous to Ripley Housing Authority than conducting a new procurement.
