Change period in the Incentive Agreement

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How to Change period in the Incentive Agreement

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lets just kind of recap where you are and why youre here you applied for the application for the H WRI back in 16 the applications were reviewed and the awards were made and it was a multi-year contract - your contract so what happened was in year one a lot of people a lot of programs probably had their amounts reduced so you had to go in and edit some things in your contract and your property in your Im sorry your budget properties and theres a couple other things you had to do and then you had to get them signed and now were basically onto your - and doing essentially the same thing right now if they havent been sent to you theyre in whats called program manager review where the program manager will take care of their tasks and then send it to you and when the contract is sent to you in gateway youve got two tasks that will happen the first one is this contract info requested I think it will actually contract info requested new period because now were on the second period t

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What are the benefits of fixed-price incentive contracts?

A fixed price incentive fee (FPIF) contract is a fixed price contract combined with an incentive fee. The seller will receive a bonus for finishing early or surpassing other metrics agreed upon in advance, such as quality. Incentives can be win-win for buyer and seller.

Which is a characteristic of a firm fixed-price contract?

A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractors cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss.

What is incentive agreement?

A fixed-price incentive contract is a fixed-price contract that provides for adjusting profit and establishing the final contract price by application of a formula based on the relationship of total final negotiated cost to total target cost. The final price is subject to a price ceiling, negotiated at the outset.

When should a fixed-price incentive firm target contract be considered?

A fixed-price incentive (firm target) contract is appropriate when the parties can negotiate at the outset a firm target cost, target profit, and profit adjustment formula that will provide a fair and reasonable incentive and a ceiling that provides for the contractor to assume an appropriate share of the risk.

What is fixed-price incentive successive targets?

A fixed-price incentive (successive target) contract (FAR 16.403-2) is an incentive type contract that operates in the same way as a Fixed Price Incentive (firm target) contract except that one or more revisions in the target cost and target profit may be made during performance.

What is incentive price revision successive targets?

A fixed-price incentive (successive target) contract (FAR 16.403-2) is an incentive type contract that operates in the same way as a Fixed Price Incentive (firm target) contract except that one or more revisions in the target cost and target profit may be made during performance.

What are the different types of incentive contracts?

(c) The two basic categories of incentive contracts are fixed-price incentive contracts (see 16.403 and 16.404) and cost-reimbursement incentive contracts (see 16.405).

What is target price fixed fee contract?

A fixed-price incentive contract uses the final negotiated price and compares it to the target price to adjust the profit on the project. Every project has a target cost and a target profit, which add up to the target price. Projects also have an actual cost and an actual price.

Is the use of fixed-price incentive firm target contracts mandatory for acquisitions moving from development to production?

(i) Not mandatory. DFARS 216.403-1(b)(1) directs the contracting officer to give particular consideration to the use of fixed-price incentive (firm target) (FPIF) contracts, especially for acquisitions moving from development to production.

What are the two forms of fixed-price incentive contracts?

The final price is subject to a price ceiling, negotiated at the outset. The two forms of fixed-price incentive contracts, firm target and successive targets, are further described in 16.403-1 and 16.403-2 below.

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