Contract Types Course (4 Weeks)

This course teaches buyers in both the private and public sectors how to identify and describe various types of contracts; and to determine which type of contract is most appropriate for a particular procurement.


I.     Factors to consider in selection of a proper contract type
       A.   Degree of price competition.
       B.    Need for price and/or cost analysis.
       C.    Type and complexity of the requirement.
       D.   Urgency of the requirement.
       E.    Methods of procurement.
       F.    Period of performance.
       G.    Supplier's technical and financial qualifications.
       H.   Adequacy of supplier's accounting system.
       I.     Type of existing contracts.
       J.     Extent and nature of subcontracting.

II.   Fixed-Price family of contracts: Advantages/Limitations
       A.   Firm-fixed-price.
       B.    Fixed-price with economic price adjustment (escalation).
       C.    Fixed-price incentive.

III.  Cost Reimbursement family of contracts: Advantages/Limitations
       A.   Cost sharing.
       B.    Cost.
       C.    Cost-plus-fixed-fee.
       D.   Cost-plus-incentive-fee.
       E.    Cost-plus-award-fee.

IV.   Indefinite Delivery (Blanket Order) Type contracts: Advantages/Limitations
       A.   Indefinite-Quantity Indefinite-Delivery.
       B.    Requirements.
       C.    Definite-Quantity Indefinite-Delivery.

V. Time-and-Materials & Labor-Hour Contracts: Advantages/Limitations

VI.  Letter contracts: Purpose and procedures

VII. Basic agreements and ordering agreements

VIII. Applying several different contract types in the same instrument


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