3014666
Description
Mind Map by AlonsoJuarezC, updated more than 1 year ago
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Created by AlonsoJuarezC
almost 11 years ago
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SAB6#140_Tipos_de_contrato
- Considerations to take by procurement manager for
different procurement process
- What is being purchased (product or
service)
- The completeness of the
statement of work
- The level of effort an
expertise from the buyer
to the seller
- Offer the seller
incentives by the
buyer
- Marketplace or economy
- Industry standards for
the type of contract used
- What is being purchased (product or
service)
- Categories of contracts
- Fixed price (FP)
- Or Lump Sum, Firm Fixed Price
- Is used for aquiring goods, products or services with well
defined specs or requirements
- Clearly defined statement of work (SOW) to get a fair
price
- If the costs are more than the agreed, the seller must
bear the additional cost.
- If the scope is well-difined, the buyer has the less cost
risk.
- If not, the disputes come over
- If not, the disputes come over
- For the exam: even though the buyer would most prefer
FP contract to control the cost is not always the best
choice. SOW could be wrong or incomplete, then the
problems come.
- The seller is forced to accept a high level of risk
- The seller needs to adda huge amount of reserve;
the buyer pays more
- The seller can more easily try to increase the profits.
The buyer won't be able to state with certainty if
something is within the scope or outside of it.
- If this contract is used when it shouldn't be there are some risks
- the seller may try to take off
the best people of the project
- to cut work specified, or not but needed
- decrease quality
- other actions to save money
- the seller may try to take off
the best people of the project
- The seller is forced to accept a high level of risk
- Contract=$$$$
- Is used for aquiring goods, products or services with well
defined specs or requirements
- Fixed Price Incentive Fee (FPIF)
- Profits can be adjusted based in a better
perfomance or achieving goals faster
- Contract = $$$$ + profit ($$)
- Some calculation in the
exam
- Profits can be adjusted based in a better
perfomance or achieving goals faster
- Fixed Price Award Fee (FPAF)
- It is very similar to FPIF contract, except the total
possible award amount is determined in advanced and
apportioned based on performance
- Contract = $$$$ + % exceeds/period
+ maximun award $$
- It is very similar to FPIF contract, except the total
possible award amount is determined in advanced and
apportioned based on performance
- Fixed Price Economic Price Adjustment (FPEPA)
- Multiyear period
- Uncertainties about future economic
condition
- Future cost of supplies and equipment
unknown
- Contract = $$$$ + price increase
if it's necessary
- Multiyear period
- Purchase Order
- Unilateral
- Become contracts when they're accepted
- Contract = $$$$ / product or service
- Unilateral
- Or Lump Sum, Firm Fixed Price
- Time and material (T&M)
- The buyer pays on a per-hour or per-item basis.
- It may contain elements of the other types.
- beware the perios of time (not too long).
- Best used for a work valued at small amounts of money
and time.
- Contract = $$$ / h + expenses or mat. cost
- The buyer pays on a per-hour or per-item basis.
- Cost-reimbursable (CR)
- Exact SOW is uncertain and, therefore, costs
cannot be estimated accurately.
- Require an accounting system for traking
costs.
- Require an accounting system for traking
costs.
- Cost contract
- The seller receives no fee
- Appropriate for work performed
by nonprofit organizations
- Contract = cost of work & materials. There's no profit
- The seller receives no fee
- Cost Plus Free (CPF) or Cost Plus
Percentage of costs (CPPC)
- Requires the buyer pay for all the costs plus a
percentage of costs as a fee
- Is bad for buyers everywhere
- The seller profit is based on a percentage
of everything billed to the buyer for
project, there is no control costs.
- Contract = Cost +
% of cost as fee
- Requires the buyer pay for all the costs plus a
percentage of costs as a fee
- Cost Plus Fixed Fee (CPFF)
- Privides for payment to the
seller of actual cost plus a
negotiated fee fixed before the
work begins
- Contract = Cost + a fee of $$$
- Privides for payment to the
seller of actual cost plus a
negotiated fee fixed before the
work begins
- Cost Plus Incentive Fee (CPIF)
- An original estimate of the total
cost is made and a fee for the work
is determined. If the actual cost is
less than the target cost the
savings goes in percentage 80-20
to buyer-seller
- Contract = $$$$ (target
cost) + $$$ (target fee)
- An original estimate of the total
cost is made and a fee for the work
is determined. If the actual cost is
less than the target cost the
savings goes in percentage 80-20
to buyer-seller
- Cost Plus Award Fee (CPAF)
- The buyer pays all costs an a
base fee plus a bonus based on
performance.
- Similar to the CPIF except the
incentive is a potential award (or
penalty)
- award is determined in advance
- Procedures must be in place for givin out the award
- Procedures must be in place for givin out the award
- Contract = Cost + base fee +
award for meeting
buyer-specified criteria
- The buyer pays all costs an a
base fee plus a bonus based on
performance.
- Exact SOW is uncertain and, therefore, costs
cannot be estimated accurately.
- Fixed price (FP)
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