SAB7#140 Contract Types

SAB7#140 Contract Types

1. FP - Fixed Price

   • Pay one amount regardless of how much it costs the contractor to do the work.

2. FPIF - Fixed Price plus Incentive Fee

   • Pay a fixed price for the contract and give a bonus based on some performance goal.

3. FPAF - Fixed Price Award Fee

   • Pay a fixed Price plus and award amount based on performance, detemined in advance apportioned based on performance.

4. FPEPA - Fixed Price Economic Price Adjustment

   • Cover a multiyear period providing certainty.

5. Purchase Order

   • Unilateral and used for simply commodity procurements.

6. T&M - Time and Materials

   • Pay a rate for each of the people working on your project plus their materials costs.

7. CR - Cost Reimbursable

   • Provides the buyer to pay the seller allowable incurred costs to the extent prescribed.

8. Cost Contract

   • The seller receives no fee.

9. CPF - Cost Plus Fee

10. CPPC - Cost Plus Percentage of Costs

    • Requires the buyer to pay for all costs plus a percentage of cost as a fee.

11. CPFF - Cost Plus Fixed Fee

    • Provides for payment to the seller of actual costs plus a negotiated fee that is fixed before the work begins.

12. CPIF - Cost Plus Incentive Fee

    • Provides for the seller to be paid for actual costs plus a fee that will be adjusted based on whether the specific performance objectives stated

13. CPAF - Cost Plus Award Fee

    • The buyer pays all costs and a base fee plus an award amount based on perfomance.