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A-12 Avenger II aircraft development contract was a fixed-price incentive contract, not a fixed-price contract, with a target price of $4.38 billion and ceiling price of $4.84 billion. It was for a unique, stealthy, flying wing design.
Fixed-price incentive 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 ...
The Final Price of the contract is expressed as follows: Final Price = Actual Cost + Final Fee. Note that if Contractor Share = 1, the contract is a Fixed Price Contract; if Contractor Share = 0, the contract is a cost plus fixed fee (CPFF) contract. [4] For example, assume a CPIF with: Target Cost = 1,000; Target Fee = 100
For contracts subject to the Federal Acquisition Regulations, FAR 16.403-1 provides the Government description of FPI. The contract type is implemented by calling out FAR Clause 52.216-16 Incentive Price Revision - Firm Target. This clause captures the Ceiling Price as well as the government share ratio(s). If multiple line items are identified ...
On Friday, the U.S. Department of Defense announced it has awarded Boeing an $895 million "cost-plus-incentive-fee, cost-plus-fixed-fee, firm-fixed-price, fixed-price incentive-fee, and cost ...
The Department of Defense announced eight defense contracts Wednesday worth $198.4 million in aggregate. ... Northrop Grumman won a $19.8 million cost-plus-incentive-fee contract to perform ...
Cost plus a fixed-fee (CPFF) contracts pay costs plus a pre-determined fee that was agreed upon at the time of contract formation. Cost-plus-incentive fee (CPIF) contracts have a larger fee awarded for contracts which meet or exceed certain performance goals, for example being on schedule and any cost savings. [1] Cost-plus-award fee (CPAF ...
A very well known requirement, such as for commercial off-the-shelf (COTS) items (in which no R&D would be needed and there are no high risk aspects) would be best acquired using a fixed-price contract, in which a price is fixed and includes the contractor's profit; all risk of cost overrun is transferred to the contractor.