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AC 150/5900-1B <br />1/31/79 <br />33. THIRD -PARTY CONTRACTS. Master planning projects are usually accomplished <br />by third -party contracts since most airport operators do not have the staff <br />capability to undertake a master plan. System planning projects are more <br />likely to be accomplished by a combination of third -party contracts and <br />force account since planning agencies may have greater staff capability to <br />perform various work activities with their own personnel. Typical types of <br />third -party contracts include firm fixed -price, cost -plus -a -fixed -fee, and <br />time and materials. The firm fixed -price contract is the most common type <br />used in the PGP and is generally preferred. All negotiated contracts over <br />$2,500 and all cost -plus -a -fixed -fee and time and materials contracts must <br />have a clause included which allows the Administrator and the Comptroller <br />General of the United States, or an authorized representative of either, <br />access to the contractor's records pertinent to the contract for the purposes <br />of accounting and audit. The contractor's accounting system must be accept- <br />able for cost accounting. Allowable costs for the cost -plus -a -fixed -fee <br />contract and the time and materials contracts must be consistent with the <br />principles set forth in FAR Part 152 (see Appendix 4 of AC 150/5100-10). <br />Also, since increases in the grant are not permitted in the PGP (see <br />paragraphs 45 and 47), these latter two types of contracts should include a <br />provision limiting the total contract cost on a "cost -not -to -exceed" basis <br />for the protection of the grantee. Contracts which provide for payment of <br />cost -plus -a -percentage -of -cost or salary costs times a multiplier are not <br />permitted. <br />34. CONTRACT PROVISIONS. In addition to provisions specified in paragraph <br />33 and those required to define a sound and complete agreement, the <br />following provisions should be included in all contracts under the PGP: <br />a. Procurement Standards. All provisions, as applicable, contained <br />in Appendix 3 of this advisory circular. <br />b. Standard DOT Title VI Assurances. The nondiscrimination clauses <br />contained in Appendix A of FAA Form 5900-8, (see Appendix 1, Exhibit 1 of <br />this advisory circular). <br />c. Disclaimer Statement. The consultant (or sponsor in the case of <br />force account work) should include on the inside front cover of each final <br />report document the following statement: "The preparation of this document <br />was financed in part through a planning grant from the FAA as provided under <br />Section 13 of the Airport and Airway Development Act of 1970, as amended. <br />The contents of this report reflect the views of -- (consultant's/sponsor's <br />name) and do not necessarily reflect the official views or policy of the <br />FAA. Acceptance of this report by the FAA does not in any way constitute <br />a commitment on the part of the United States to participate in any <br />development depicted therein nor does it indicate that the proposed develop- <br />ment is environmentally acceptable in accordance with applicable public laws." <br />It should be noted that demand for Federal matching funds, generally, far <br />exceeds supply; therefore, proposed development may not receive Federal funding <br />even though it is eligible. <br />20 <br />Chap 3 <br />Par 33 <br />