NAVY SCHOOL MANAGEMENT MANUAL

FY. If 12 classes were scheduled, the Navy would have to
pay for two extra classes at the welding course unit price
even though only 100 students were trained.
Since CORs normally prepare the request for instructional
services delivery orders based on the information in
CeTARS, training managers are usually required to review
the request before it is submitted to the contracting
officer for issuance of a delivery order. Training
managers must not only verify the number of classes that
must be taught in a given month, but they must also verify
class convening and graduation dates.
If in the example above, the error of the two extra classes
was caught and appropriate changes were made before the
contractor received the delivery orders, the Navy would not
have to pay for the two additional classes. However, since
the 12 classes were scheduled and listed in CeTARS,
deleting two classes could create problems for the detailer
and for any students who had planned to attend the
cancelled classes.
4.7. Firm-Fixed Price Level of Effort Contracts. As previously
stated most Navy contracts for training-related services are
firm-fixed price contracts.
This type of contract specifies a fixed price that the
contractor will receive for a set amount of effort or
delivery of a certain service as required by the contract.
A firm-fixed price level of effort type contract for
instructional services identifies the number of classes to
be convened for each contract year. The contractor must
provide sufficient effort (instructors) to instruct the
classes.
Delivery orders are not issued with this type of contract;
therefore funding is provided on the basic contract. The
contract is divided into and priced by functional areas.
Cost estimates based on classes specified in each
functional area of the contract
Accurate projections of class convening are critical for
this type contract.
Significant changes in class convening are requiring
contract modifications.
The government will periodically review the level of
effort. If the level of effort reflects increases or
decreases in any area that is consistent over at least a
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NAVEDTRA 135C