Fixed Price Contracts: The Benefits of Performance Reimbursement Contracts in Procurement

Fixed price contract agreements (also called performance reimbursement contracts) are one of the major contract types in government procurement. According to Federal Acquisition Regulations (FAR), performance reimbursement contracts require an agency to pay the previously agreed upon compensation no matter what expenses the contractor incurred. So, a buyer pays a fixed, previously negotiated price, with Read more about Fixed Price Contracts: The Benefits of Performance Reimbursement Contracts in Procurement[…]

Cost Plus Contracts: Cost Reimbursement Contracts in Government Procurement

The major two contract types in government procurement are cost reimbursement contracts (or cost plus), and performance reimbursement contracts (or fixed price). The major difference between them is that the cost plus contracts are usually those of indefinite delivery, and the contractor is paid a percent in addition to labour and materials cost. A cost Read more about Cost Plus Contracts: Cost Reimbursement Contracts in Government Procurement[…]