evaluation techniques, procurement contracts

physical capacity

refers to the vendor’s ability to produce the required volume of goods or services, including units sold, consulting hours, or any other relevant measure

technical approach

involves comparing vendor submissions to the product rquirements

fixed price contract (lump sum contract )

establishes a set price for a fixed scope of work and places most of the contract risk on the vendor

firm fixed price (FFP)

a model where the buyer agrees to pay a fixed price for a specific product

fixed price incentive fee (FPIF)

a buyer can add incentives to a fixed price contract

fixed price with economic price adjustment (FP-EPA)

a fixed price contract that takes into account inflation costs

cost plus contract/ cost reimbursable contract

reimburses the vendor for all resource costs incurred in compelting the work and adds a fee to cover the vendor’s profit margin

cost plus award fee (CPAF)

additional fee is awarded based on the vendor’s performance during the project

cost plus incentive fee (CPIF) contract

contract that offers vendors an incentive to complete a project under specific circumstances

time and material (T&M) contract

pays for the actual hours worked by the vendor at a predetermined hourly rate

cost plus percentage of cost (CPPC) contract

a vendor receives a fee equal to a percentage of all costs