34.005-5
Full-scale development contracts
Full-scale development contracts should require contractors to submit priced production proposals based on the most current requirements to support informed production decisions.
Overview
FAR 34.005-5 addresses requirements for full-scale development contracts, emphasizing the need for contractors to submit priced proposals for production whenever feasible. These proposals should be based on the most current information regarding quantity, schedule, logistics, and other relevant factors that will influence the production decision. The intent is to ensure that production planning is grounded in up-to-date and realistic data, facilitating smoother transitions from development to production phases in major system acquisitions.
Key Rules
- Submission of Priced Proposals
- Contractors should provide priced proposals for production as part of full-scale development contracts, when practicable.
- Use of Latest Requirements
- Proposals must reflect the latest quantity, schedule, logistics, and other considerations relevant to the production decision.
Responsibilities
- Contracting Officers: Ensure contract provisions require submission of priced production proposals based on current requirements.
- Contractors: Prepare and submit production proposals using the most recent and accurate data available.
- Agencies: Oversee compliance and ensure proposals are evaluated using up-to-date requirements.
Practical Implications
- This section ensures that production decisions are informed by accurate, current data, reducing risk and uncertainty in major system acquisitions.
- Contractors must stay updated on changing requirements and be prepared to adjust proposals accordingly.
- Failure to use the latest information can result in misaligned production planning, cost overruns, or schedule delays.