Fixed-price incentive (successive targets) contracts: A fixed-price incentive (successive targets) contract specifies the following elements, all of which are negotiated at the outset: Fixed-price contracts with award fees (FPAF) Award-fee provisions may be used in fixed-price contracts when the Government wishes to motivate a contractor and other incentives cannot be used because contractor performance cannot be measured objectively.
Indefinite delivery, indefinite quantity contracts provide for an indefinite quantity of services for a fixed time. They are used when GSA can’t determine, above a specified minimum, the precise quantities of supplies or services that the government will require during the contract period.
A time-and-materials contract may be used only when it is not possible at the time of placing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence. See 12.207(b) for the use of time-and-material contracts for certain commercial services. (1) Government surveillance.
Subpart 16.6—Time-and-Materials, Labor-Hour, and Letter Contracts 16.600 Scope. Time-and-materials contracts and labor-hour contracts are not fixed-price contracts. 16.601 Time-and-materials contracts. (a) Definitions for the purposes of Time-and-Materials Contracts.
The process may seem straightforward, but strict rules apply and compiling bids can be a tedious process. Government Proposals. Government agencies typically issue a request for proposals (RFP) when the award will be based on more than price. Like sealed bids, proposals are typically used for larger purchases, but they're much more detailed than bids.
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Q. Is the contract outlined below a cost plus percentage of cost contract, even if the modifications show a target cost, base fee and maximum available award fee? Cost plus award fee contract. 8 percent base. 7 percent award fee. Contract ceiling $508 million. Contract grows due to scope changes over a six-month period to almost $1 billion.
A lump-sum contract is normally used in the construction industry to reduce design and contract administration costs. It is called a lump-sum because the contractor is required to submit a total and global price instead of bidding on individual items.