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23 Cards in this Set
- Front
- Back
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What are the types of cost reimbursable contracts?
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- Cost plus fixed Fee
- Cost Plus Incentive - Fee Cost Plus Award Fee - Cost Sharing |
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What are the Fixed Price Types of Contracts?
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- Firm Fixed Priced
- Fixed Price Award Fee - Fixed Price Incentive Fixed priced (level of effort) - Fixed Price with Economic Price Adjustment - Fixed Price with Price Redetermination |
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What are the key characteristics of the cost reimbursement contract?
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- Provides the best effort
- no profit sharing - High risk to government - Cash as incurred |
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What are the key characteristics for Fixed Price?
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- Profit sharing allowed
- High risk to contractor - Cash on delivery |
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What are some factors in setting contract type?
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- Competition
- Urgency of requirement - Period of performance - Contractors technical capability - Adequacy of contractors accounting system - Acquisition history |
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What are the general differences between cost plus fixed fee and firm fix price?
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-CPFF: As cost goes up, so does price
-FFP: As cost goes up, profit goes down |
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What generally contributes to high risk to government?
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- Vague requirements
- Uncertainty of material and labor costs |
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When is the contractor fixed fee negotiated?
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- At contract award
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What are negotiated at contract award for a CPFF?
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-Estimated Cost and Fixed Fee
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What are the associated rules for R&D contracts, Engineering contracts and other types of contracts on what fee amount is acceptable when negotiation a CPFF?
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- No more than, 15% for R&D contracts
- No more than, 6% of contract cost estimated for architectural and engineer contracts -No more than, 10% of estimated contract cost for other types of contracts |
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What's established at contract award for a CPIF contract?
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- Targeted Cost
- Target fee - max fee - min fee - share ratios |
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What is established at contract award for a CPAF contract?
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- Estimated cost
- Base Fee - Award Fee Pool Criteria |
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What are the advantages in using a cost plus award fee contract?
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- Subjective discretionary decision making
- control and flexibility criteria - unilateral modification to add award fee for period |
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What are the disadvantages in utilizing a cost plus award fee type contract?
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- very people and time intensive
- contractor may dispute whether government followed its award fee plan and not whether it earned “correct” fee |
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What is negotiated and established at contract award for a firm fixed price contract?
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-Price
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What is established at contract award for a fixed price award fee contract?
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-Price and the award fee evaluation criteria
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What is established for a fixed price incentive type contract at award?
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-Targeted Cost
-Targeted profit -ceiling price -shared ratio |
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What are the types of contract financing?
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-Commercial that includes advance payments and interim payments
-Non-commercial that includes advance payments, loan guarantees, progress payments, and performance based payments |
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What are progress payments?
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-A form of government financing in recognition of the need for working capital for long lead items and in process expenditures
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What are the usual progress payments rates for DoD contracts to include FMS?
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- 80% large business concerns
- 90% for small business concerns - 95% for small disadvantage business concerns |
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What are performance based payments?
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-Government’s preferred method for contract financing for fixed price contracts
-Payment is based upon a achievement of a specific event and valued in advance by the parties to the contract -PBP focuses upon performance rather than incurred costs |
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What are the three pieces required to define performance based payment terms?
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-Payment or event criteria
-definition of successful completion -value of event |
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Who selects the contract type at Milestone B for the MDAP ?
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-MDA
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