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f901c92b44 Under this arrangement complete records of all time and materials spent by the contractor on the work must be maintained. This type of contract specifies a target cost, a target fee, minimum and maximum fees, and a fee adjustment formula. Cost + Fixed Fee Contract Compensation is based on a fixed sum independent the final project cost. Often used in engineering contracts. Contract 10/19/2013 265 KB .
For all other contract vehicles combined the relative ranking is reversed to the original cost-plus order, meaning that products lead, followed by service and research. Contract 08/11/2013 113 KB . In 2004, however, services replaced research as the dominant sector category for cost-plus contracts. Properly designing award or incentive fees also requires additional oversight and administration. There is less incentive to be efficient compared to a fixed-price contract. Incentive Contracts Compensation is based on the engineering and/or contracting performance according to an agreed target - budget, schedule and/or quality. "Cost-plus" redirects here. There are four general types of cost-reimbursement contracts, all of which pay every allowable, allocatable, and reasonable cost incurred by the contractor, plus a fee or profit which differs by contract type.