Information - FAQ, Contracts

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Frequently Asked Questions, Contracts

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What types of contracts are used for Project Agreements? Can other types of contracts be used, such as Firm Fixed Price with Cost Plus Not to Exceed?

Project Agreements under the DA2 OTA are primarily Firm Fixed Price contracts (FFP); however, cost reimbursement contracts are available. Cost reimbursement type agreements include the following: Cost No Fee, Cost Plus Fixed Fee (CPFF), cost Plus Award Fee (CPAF), and Cost Plus Incentive Fee (CPIF).

FFP contracts minimize the amount of resources expended by the Consortium Member, DATC and the Government to administer the Agreement (contract). The cost type contracts will only be use if deemed necessary by the Government.

FFP contracts provide for a price that is not subject to adjustment due to the Project Agreement Holder's (PAH) cost experience in executing the project. Each Project Agreement is discussed and negotiated directly between the Government Customer and the selected Member during the Request for Project Proposal phase. This allows the Member to collaboratively determine the scope and price of the Project with the Government Customer. During the Proposal phase (prior to signing of a Project Agreement), a Consortium Member or the Government can elect not to pursue the Project if the terms and price are not mutually desirable. However, upon signing of the Project Agreement the Consortium Member (and Government) have agreed to the scope of work and price.

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