Contract Pricing
Fixed-Price Contract or Cost-Reimbursement Contract
Willie Glover
BUS 501
February 20, 2011
Dr. Nick Nayak
Abstract
Fixed-price contracts and cost-reimbursements are two different forms of contracts used by the federal government while determining contract pricing. Contracting officers may use either when contracting however there are several types of fixed-price contracts. Fixed-price type of contracts provide for a firm price or an adjustable price. Fixed-price contracts consist of firm-fixed-price contracts, level-of-effort term contracts, materials reimbursement, fixed-price contract with economic price adjustment, incentive contracts, redetermination, cost-imbursement contacts and cost-plus-a-fixed-fee contracts. As we understand the need for services for formerly incarcerated veterans the need has increased given the recent recession. There is a need for a rehabilitated homeless veteran’s center. This need will result in contractors building the facility to use as a reformatory to help veterans. After careful consideration and analysis, there will be a firm-fixed price contract.
Keywords: contracts, cost, fixed price, cost-reimbursement.
There is a wide selection of contract types available in order to provided needed flexibility in acquiring the large variety and volume of supplies required by the federal government. Contract varies according to the degree and timing of the responsibility assumed by the contractor for the costs of performance and the amount and nature of the incentive offered to the contractor for achieving or exceeding specified standards or goals. The contract types are grouped into two broad categories; one category for fixed-price contracts and the cost-reimbursement contracts.
The specific contract types ranged from firm-fixed price, in which the contractor has full responsibility for the performance costs and resulting profit or loss, to cost-plus-fixed-fee, in which the contract has minimal responsibility for
Willie Glover
BUS 501
February 20, 2011
Dr. Nick Nayak
Abstract
Fixed-price contracts and cost-reimbursements are two different forms of contracts used by the federal government while determining contract pricing. Contracting officers may use either when contracting however there are several types of fixed-price contracts. Fixed-price type of contracts provide for a firm price or an adjustable price. Fixed-price contracts consist of firm-fixed-price contracts, level-of-effort term contracts, materials reimbursement, fixed-price contract with economic price adjustment, incentive contracts, redetermination, cost-imbursement contacts and cost-plus-a-fixed-fee contracts. As we understand the need for services for formerly incarcerated veterans the need has increased given the recent recession. There is a need for a rehabilitated homeless veteran’s center. This need will result in contractors building the facility to use as a reformatory to help veterans. After careful consideration and analysis, there will be a firm-fixed price contract.
Keywords: contracts, cost, fixed price, cost-reimbursement.
There is a wide selection of contract types available in order to provided needed flexibility in acquiring the large variety and volume of supplies required by the federal government. Contract varies according to the degree and timing of the responsibility assumed by the contractor for the costs of performance and the amount and nature of the incentive offered to the contractor for achieving or exceeding specified standards or goals. The contract types are grouped into two broad categories; one category for fixed-price contracts and the cost-reimbursement contracts.
The specific contract types ranged from firm-fixed price, in which the contractor has full responsibility for the performance costs and resulting profit or loss, to cost-plus-fixed-fee, in which the contract has minimal responsibility for
References: Feldman, Steven W. (2008-2009). Government Contract Guidebook. FAR 16.104 and FAR 4:17 Contract Types Hearn, Emmett E. (2006). Federal Acquisition and Contract Management. Acquisition by of Sealed Bidding.