Contract Types

Question 1

What is a fixed price contract

Answer 1

One price for the entire contract. Can include firm fixed price (FFP), fixed price incentive fee (FPIF), and fixed price with economic price adjustment (FP-EPA).

Question 2

What is a cost-reimbursable contract

Answer 2

payments to the seller for actual costs for completing the work plus a fee for representing seller profit. Used for cases when project scope is not defined or frequently changed. Includes: cost plus award fee (CPAF), cost plus fixed fee (CPFF) and cost plus incentive fee 9CPIF)

Question 3

what is a time and materials contract

Answer 3

this is a fixed rate but not a precise statement of work. good for staff augmentation, or other outside support.

Question 4

What is indefinite delivery indefinite quantity (IDIQ)

Answer 4

Think of a streaming subscription. can contain a stated upper and lower limit, and within a fixed time period.

Question 5

What other contract types are there

Answer 5

memorandum of understanding (MOU), memorandum of agreement (MOA), service level agreement (SLA) and basic ordering agreement (BOA)