If someone wants to rent something with the option of buying it before the lease expires, a lease can protect both parties. These agreements are standard leases, but with a clause that allows the lessor to purchase the item or property. A lease with an option to purchase is usually associated with items such as furniture or appliances, but can also be used for real estate. (i) The contract includes an extended period of service with significant costs exceeding 1 year after the commencement of performance; 16 701 Scope. This subsection prescribes policies and procedures for the establishment and use of basic agreements and basic purchase agreements. (See 13,303 for master procurement contracts (EPS) and see 35,015 (b) for additional coverage of core agreements with educational institutions and not-for-profit organizations.) 16,702 basic agreements. (a) Description. A basic agreement is a written instrument of agreement negotiated between a contractual agency or activity and a contractor that (1) contains contractual clauses that apply to future contracts between the parties during their term and (2) considers separate future contracts that contain, by reference or annex, the necessary and enforceable clauses agreed in the basic agreement. An agreement in principle is not a contract.
(b) enforcement. A basic agreement should be used when a significant number of separate contracts can be awarded to a contractor during a given period of time and significant recurring bargaining issues have arisen with the contractor. Basic agreements can be used with fixed-price negotiated contracts or reimbursement contracts. (1) contain basic agreements – (i) the clauses necessary for the negotiation of contracts by law, implementing regulation and this regulation; and (ii) other clauses prescribed in this Regulation or in the rules on the acquisition of agencies that the parties agree to include in each contract, if any. (2) Each basic agreement shall provide that its future validity shall cease in writing by one of the parties with 30 days` notice. 3. Each basic agreement shall be reviewed each year before the anniversary of its entry into force and, if necessary, revised to comply with the requirements of this Regulation. Basic agreements may need to be revised prior to the annual review due to mandatory legal requirements. A basic agreement can only be amended by amending the agreement itself and not by a contract containing the agreement. 4. Termination or modification of a basic agreement does not affect any previous contract containing the basic agreement. (5) The contract staff of one agency should obtain and make the best use of the existing basic agreements of another agency.
(c) Restrictions. A basic agreement may not: – (1) specify funds or commit funds; (2) an agreement of the Government to award, declare or imply future contracts with the contractor; or (3) used in any way to restrict competition. (d) contracts containing basic agreements. (1) Any contract containing a basic agreement shall contain a range of services and prices, delivery and other appropriate conditions that apply to the respective contract. The basic agreement is incorporated into the contract by special reference (including the reference to any amendment) or by annex. 2. The agent shall include clauses relating to matters which are not covered by the basic agreement but which are applicable to the contract to be negotiated, in the same way as if there were no agreement in principle. (3) Where an existing contract is amended to create a new entrant, the amendment shall include the last basic agreement applicable only to the works added by the amendment, with the exception that such measure is not mandatory if the contract or amendment contains all the clauses required at the time of the amendment by law, implementing regulation and this Regulation.
However, if it is in the interest of the government and the contractor agrees, the change may include the most recent basic agreement that will be applied to the entire contract at the time of the change. 16,703 basic order contracts. (a) Description. A basic contracting agreement is a written instrument of agreement negotiated between an agency, contract activity or procurement office and a contractor and contains (1) terms and conditions that apply to future contracts (contracts) between the parties during their term, (2) as accurate a description as possible of the supplies or services to be provided, and (3) pricing methods. Issuance and delivery of future orders under the basic order contract. A basic order contract is not a contract. (b) enforcement. A basic order contract may be used to expedite the award of contracts for uncertain supply or service needs where certain items, quantities and prices are not known at the time of performance of the contract, but a significant number of requirements relating to the type of supplies or services covered by the agreement are likely to be purchased by the contractor. Under reasonable circumstances, the use of these procedures may result in savings in ordering parts for equipment support by reducing administrative delays, inventory investments, and inventory obsolescence due to design changes. (c) Restrictions.
A basic purchase agreement may not create or imply a government agreement to award future contracts or contracts with the contractor or to be used in any way to restrict competition. (1) Each basic order contract shall: – (i) describe the method of determining the prices to be paid to the contractor for supplies or services; (ii) specify the terms of delivery or indicate those determined; (iii) List one or more governmental activities empowered to issue orders under the Agreement; (iv) Indicate when each order becomes a binding contract (e.B. issue the order, accept the order in a certain way or not reject the order within a certain number of days); (v) provide that failure to reach a price agreement for an order placed prior to the determination of the price (see paragraph (d)(3) of this Article) constitutes a dispute within the meaning of the dispute resolution clause contained in the basic order contract; and (vi) If prompt payment procedures apply to orders, provide the special data required by 13 403. . .