What are the different types of government contracts?
Federal government contracts are commonly divided into two main types, fixed-price and cost-reimbursement. Other contract types include incentive contracts, time-and-materials, labor-hour contracts, indefinite-delivery contracts, and letter contracts.
What are the five major categories of government procurement?
FAR groups procurements into five major categories including supplies, constructions, services, research and development, and rental of real property. Each category has numerous specified types of procurement. For example, FAR 2.101 defines “supplies” as all property except land or interest in land.
What are the major contract types?
Contract types in this category include:
- Cost (CR)
- Cost-sharing (CS)
- Cost-plus-fixed-fee (CPFF)
- Cost-plus-award-fee (CPAF) ( See Incentive Type Contracts Below)
- Cost-plus-incentive-fee (CPIF) ( See Incentive Type Contracts Below)
What is a Type C government contract?
C contracts refer to the standard contract vehicle type (Federal Acquisition Regulation (FAR) Part 16, n.d.), generally used when initial requirements are more definite and there is a more established schedule.
What are the 5 basic types of contracts?
A Look At 5 Types Of Government Contracts
- The Fixed-Price Contract. The fixed-price contract is a bit like those fancy prix-fixe dinners at upscale eateries.
- Cost-Reimbursement Contracts.
- Time & Materials Contracts.
- Incentive Contracts.
- Indefinite Delivery & Quantity Contracts.
What are F type contracts?
F – Task Orders, Delivery Orders, or Calls under Indefinite Delivery contracts (Instrument D), Blanket Purchase Agreements (Instrument A) and Basic Ordering Agreements (Instrument G).
What is a FFP contract?
A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss.
Federal government contracts are commonly divided into two main types, fixed-price and cost-reimbursement. Other contract types include incentive contracts, time-and-materials, labor-hour contracts, indefinite-delivery contracts, and letter contracts. This wide selection of contract types is available to the government and contractors
What are the different types of prime contracts?
Prime contracts (including letter contracts) other than firm-fixed-price contracts shall, by an appropriate clause, prohibit cost-plus-a-percentage-of-cost subcontracts (see clauses prescribed in subpart 44.2 for cost-reimbursement contracts and subparts 16.2 and 16.4 for fixed-price contracts).
What kind of contract is fixed price incentive?
A fixed-price incentive contract is a fixed-price type contract with provisions for adjustment of profit. The final contract price is based on a comparison between the final negotiated total costs and the total target costs.
What to consider when negotiating a contract type?
Negotiating the contract type and negotiating prices are closely related and should be considered together. The objective is to negotiate a contract type and price (or estimated cost and fee) that will result in reasonable contractor risk and provide the contractor with the greatest incentive for efficient and economical performance.