Firm Fixed-Price Contracts. The final invoice must be submitted directly to the Contracting Officer and is subject to review and acceptance the Program Manager and requires approval by the Contracting Officer prior to payment being released. - Final invoice that match the contract price: once the Program Manager accepts the final deliverables, the Contracting Officer will approve the final invoice for payment. - Final invoices that do not match the contract price: once the Program Manager accepts the final deliverables, the invoice is subject to review and approval by the Contracting Officer. A modification to de-obligate unused funds may be necessary prior to paying the final invoice. Summary: For firm-fixed-price contracts: All final invoices for FFP contracts could go to CT for KO review; however, anytime the invoice total does NOT match the contract price, CT needs the final invoice so that a de-obligation modification can be started, and a KO can approve the invoice. ACCOUNTING AND APPROPRIATION DATA AA: 97004001101 088000 255Y9022D30603716D8Z0 NA 44213 AMOUNT: $50,000.00 AB: 97104001101 088000 255YJL98DH0603716D8Z0 NA 44213 AMOUNT: $100,000.00 ACRN CLIN/SLIN CIN AMOUNT AA 000101 W74RDV03497358000101 $50,000.00 AB 000102 W74RDV03497358000102 $100,000.00 CLAUSES INCORPORATED BY FULL TEXT 252.201-7000 CONTRACTING OFFICER'S REPRESENTATIVE (DEC 1991)
Firm Fixed-Price Contracts. This type of contract requires the contractor to successfully perform the contract and deliver conforming supplies or services for a price agreed to up front. This type of contract places the most performance and cost risk paid. A firm-fixed price contract is suitable for supplies and services that can be described in sufficient detail to ensure complete understanding of the requirements by both parties and assessment of the inherent risks of performance. 1 Member Executive Council of Pakistan Engineering Congress, Convener Publication Committee Other Fixed Price Contracts Within the fixed price contract group, contracts can be awarded with: • Economic price adjustment factors to allow for industries where costs fluctuate frequently either up or down • Various incentive types which can be used to reward good performance or to impose provisions to deduct for poor performance • Price redetermination provisions which permit issuing an order on a fixed price basis and allow for revisiting the reasonableness of that pricing later during the contract performance • A specified level of effort Cost Reimbursement Contracts A cost reimbursement contract allows for payment of all incurred costs, within a predetermined ceiling that can be allocated to the contractor as allowable within cost standards, and reasonable. Therefore, all types of cost reimbursement contracts place the least cost and performance risk on the contractor. They basically only require the contractor to use their "best efforts" to complete the contract. However, this type of contract is required when the uncertainties of performance will not permit a fixed price to be estimated with sufficient accuracy to ensure that a fair and reasonable price is obtained. Other Types of Contracts
