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  2. Cost-plus-incentive fee - Wikipedia

    en.wikipedia.org/wiki/Cost-plus-incentive_fee

    The Final Price of the contract is expressed as follows: Final Price = Actual Cost + Final Fee. Note that if Contractor Share = 1, the contract is a Fixed Price Contract; if Contractor Share = 0, the contract is a cost plus fixed fee (CPFF) contract. [4] For example, assume a CPIF with: Target Cost = 1,000; Target Fee = 100; Benefit/Cost ...

  3. Cost-plus contract - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_contract

    Cost-plus contract. A cost-plus contract, also termed a cost plus contract, is a contract such that a contractor is paid for all of its allowed expenses, plus additional payment to allow for risk and incentive sharing. [1] Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount ...

  4. Cost-plus pricing - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_pricing

    Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return. [1][2] An alternative pricing method is value-based pricing.

  5. Point of total assumption - Wikipedia

    en.wikipedia.org/wiki/Point_of_total_assumption

    The point of total assumption (PTA) is a point on the cost line of the profit-cost curve determined by the contract elements associated with a fixed price plus incentive-Firm Target (FPI) contract above which the seller effectively bears all the costs of a cost overrun. The seller bears all of the cost risk at PTA and beyond, due to a dollar ...

  6. Fixed-price contract - Wikipedia

    en.wikipedia.org/wiki/Fixed-price_contract

    Fixed-price contract. A fixed-price contract is a type of contract for the supply of goods or services, such that the agreed payment amount will not subsequently be adjusted to reflect the resources used, costs incurred or time expended by the contractor. This contract type may be contrasted with a cost-plus contract, which is intended to cover ...

  7. Average fixed cost - Wikipedia

    en.wikipedia.org/wiki/Average_fixed_cost

    Because average total cost is average variable cost plus average fixed cost, average fixed cost is average total cost minus average variable cost. [2] If producing 5 shirts generates an average total cost of 11 dollars and average variable cost of 5 dollars, the fixed cost would be 6 dollars.

  8. Cost Plus Fixed Fee - Wikipedia

    en.wikipedia.org/?title=Cost_Plus_Fixed_Fee&...

    Retrieved from "https://en.wikipedia.org/w/index.php?title=Cost_Plus_Fixed_Fee&oldid=363976594"

  9. Guaranteed maximum price - Wikipedia

    en.wikipedia.org/wiki/Guaranteed_Maximum_Price

    Guaranteed maximum price. A guaranteed maximum price (also known as GMP, not-to-exceed price, NTE, or NTX) contract is a cost-type contract (also known as an open-book contract) such that the contractor is compensated for actual costs incurred plus a fixed fee, limited to a maximum price. The contractor is responsible for cost overruns greater ...

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