Government Contracts!

This bingo card has a free space and 31 words: In this family of government contracts the price will not change and the risk is put on the contract., The contractor is required to devote a specified level of effort over a stated period of time for a fixed dollar amount., All the risk is placed on the contractor’s side. If their costs exceed the FFP price, then too bad. However, FFPs are only issued when its determined that the financial risks are determined to be too insignificant., Price is not adjustable aka “firm.”, What type of contract is the IRC contract on?, Use is appropriate to protect both the Government and the contractor when there is serious doubt about the stability of labor or material prices during the life of the contract. Price adjustment provisions can provide for both upward and downward, These contracts are useful when there are predictions of unstable market prices for labor or materials over the life of the contract., There is a fixed price with a ceiling for upward adjustment and a limit to downward adjustment. Downward adjustment is based on established prices, actual labor and material costs, along with labor or material indices., Long-term contracts for commercial supplies during a period of high inflation rates., There is a firm-fixed price with standards to evaluate the contractor’s performance, along with procedures for creating a fee based on performance vs. standards. The award fee will be added to the firm-fixed price upon satisfactory performance., To motivate the contractor with incentives when it’s difficult to form an objective gauge for contractor performance., The risk is on the contractor if they cannot work within the fixed-price or within the award fee (if they provided satisfactory performance)., A ceiling price can be established that covers the most probable risks for the nature of the work. If the contractor meets their obligations beneath the ceiling price, they can make a profit., On this type of contract there is the incentive put in place for making a profit, there’s also no limit on how much the contractor can lose on this type of opportunity., This type of contract is issued when there are uncertainties about the contract labor or material requirements., When there is a need for the long-term production of spare parts for any major system., This contract is used when an agency cannot determine the cost of performance after the first year of a contract, There will be a fixed-price for the first period and then proposed pricing for the following periods that are at least 12 months apart., These types of government contracts are more unified in how they get paid out. The contract will get paid for all allowed expenses plus an additional payment for profit., The contractor’s payment will be based on the actual cost and/or performance. A minimum and maximum range for payment will be set along with a target fee., The contractor is paid for the expenses of performance along with an additional fixed fee. Used when a CPIF is deemed to be impractical., These contracts feature a target cost along with a base and maximum fee. The fee is determined on performance matched up against standards., There’s a target cost and an agreement of what share is the government’s cost, but there’s no fee., This contract is based on the time spent by the contractor’s employees, subcontractors, and the materials used., This family of contracts are awarded under circumstances in which the government might not know how much of an item or service they need or when they need it and is the most flexible type of contract., For fulfilling all purchase requirements of designated government activities during a specified contract time., Is characterized by a rigid adherence to formal procedures. Those procedures aim to provide all bidders an opportunity to compete for the contract on an equal footing. In a sealed bidding acquisition, the agency must award to the responsible bidd, Under sealed bidding procedures, only two types of contract price methods may be used: firm-fixed-price or fixed price with economic price adjustment., There’s a ceiling price, a per-hour labor rate (which also covers overhead and profit), and provisions for reimbursing direct materials costs., Provides a definite amount of supplies or services for a fixed period of time. and This type of contract is used when the government needs an indefinite amount of services over a fixed amount of time..

More like this:

Chapter 1 | CA Bingo | Which Statement about cost is True ? | Procurement Bingo | Government in the Economy