Terms and Conditions
This clause is used to fully fund cost-reimbursement contract.
What is FAR 52.232-20, Limitation of Cost (FAR 32.706-2(b))?
This cost-reimbursement contract provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract.
What is a cost-plus-fixed-fee contract (FAR 16.306(a))?
This 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.
What is a firm-fixed-price contract (FAR 16.202-1)?
The contractor must have this type of accounting system in place to be awarded a cost-reimbursement contract.
What is an adequate accounting system (FAR 16.301-3(a)(3))?
The two broad categories of contract types.
What are fixed-price and cost-reimbursement contract types (FAR 16.101(b))?
This clause is used to incrementally fund fixed-price contracts.
What is DFARS 252.232-7007, Limitation of Government’s Obligation (DFARS 232.706-70)?
This cost-reimbursement contract provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs.
What is a cost-plus-incentive-fee contract (FAR 16.304)?
This fixed-price contract provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies.
What is a fixed-price contract with economic price adjustment (FAR 16.203-1(a))?
This contract type provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract.
What is a firm-fixed-price contract (FAR 16.202-1)?
The cost-reimbursement contract type where there is a statutory limitation imposed on the contractor’s negotiated fee.
What is a cost-plus-fixed-fee contract (FAR 15.404-4(c)(4)(i))?
This clause used to incrementally fund cost-reimbursement contracts.
What is FAR 52.232-22, Limitation of Funds (FAR 32.706-2(a))?
This cost-reimbursement contract provides the contractor an earned fee amount based upon a judgmental (subjective) evaluation by the Government.
What is a cost-plus-award-fee contract (FAR 16.305)?
This fixed-price contract provides for adjusting profit and establishing the final contract price by a formula based on the relationship of final negotiated total cost to total target cost.
What is a fixed-price incentive contract (FAR 16.204)?
This cost-reimbursement contract language allows the contractor to receive payment even if a final deliverable is not achieved
What is “best efforts” language in cost-reimbursement contract?
Price competition, complexity of requirement, and acquisition history are factors to consider when selecting this.
What is contract type (FAR 16.104)?
This contract type provides for payment of allowable incurred costs, to the extent provided in the contract.
What is a cost-reimbursement type contract (FAR 16.301-1)?
Approves the use of a cost-reimbursement contract in excess of $25M.
Who is the Senior Contracting Official (SCO), unless delegated (AFFARS MP5301.601(a)(i) and AFFARS 5316.301-3(2))?
This contract type is suitable when the requirement is well-defined and market conditions are stable.
What is a firm-fixed-price contract (FAR 16.2)?
When using a cost-plus-incentive-fee contract, this is the fee opportunity (range) between maximum fee at the lowest cost and the minimum fee at the most pessimistic cost.
What is the range of incentive effectiveness?
When the awarded contract is $2M or more and no exception listed in FAR 15.403-1(b) applies, this statute requires a contractor to submit certified cost or pricing data.
What is the Truthful Cost or Pricing Data Statute (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35)?
When using a contract type with a share ratio, the Government’s share is expressed as this.
What is the numerator in the share ratio (the contractor share is the denominator)?
This cost-reimbursement contract type is prohibited.
What is a cost-plus-a-percentage-of-cost type contract (FAR 16.102 and FAR 44.203(b)(3))?
When using a fixed-price incentive (firm target) contract, this share ratio is to be used as the point of departure for establishing the incentive arrangement.
What is a 50/50 share ratio (DFARS 216.403-1(b)(2))?
This contract type provides little to no incentive for a contractor to limit costs, unless there is an incentive built into them for that purpose.
What is a cost-reimbursement contract?
The use of this contract type is prohibited for the acquisition of commercial products and commercial services.
What is a cost-reimbursement contract (FAR16.301-3(b))?