| Description: |
A draft contract that is intended to be a mutually binding legal relationship obligating the external supplier to furnish the goods or services (including construction) and the buyer to provide payment for those goods or services as agreed upon by the contract. The draft contract is finalized following negotiations and revisions in coordination with the supplier. Contracts include all types of commitments that obligate the DoD to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include, but are not limited to, awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. A contract is not effective until it has been awarded to the supplier. |