Section 27-4612. FIXED-PRICE CONTRACTS

4612.1Fixed price contracts include several variants: 

 

(a)Firm, fixed price contracts;

 

(b)Fixed price contracts with economic price adjustment; and

 

(c)Fixed price incentive contracts. 

 

4612.2Unlike cost reimbursement contracts, any type of fixed price contract obligates the contractor to complete the contractually-specified work for a fixed price.

 

4612.3A firm fixed price contract provides for a price that is not subject to adjustment, except in the event of a change to the scope of work.

 

4612.4A fixed price contract with economic price adjustment provides for an upward or downward adjustment in the stated contract price based on changes in certain benchmarks specifically identified in the contract (for example, catalog prices or the producer price index for a particular commodity), subject to a ceiling on upward adjustments.

 

4612.5A fixed price incentive contract generally provides for establishing a final price by applying a formula based on the relationship between the total cost actually incurred by the contractor and a total target cost.  A fixed price incentive contract results in the parties sharing in the cost savings or increases associated with differences between the actual and target cost.  These contracts also can include incentive formulas based on the contractor’s schedule or technical performance.

 

authority

The Board of Directors of the Not-for-Profit Hospital Corporation (Board), pursuant to authority granted by sections 105(a), 106(6), and 111 of the Not-for-Profit Hospital Corporation Establishment Emergency Amendment Act of 2010 (Act), effective July 7, 2010 (D.C. Act 18-476; 57 DCR 6937 (August 6, 2010), and applicable sections of any subsequent substantially identical emergency, temporary, or permanent legislation.

source

Notice of Emergency and Proposed Rulemaking published at 57 DCR 8507 (October 8, 2010)[EXPIRED]; as amended by Notice of Emergency and Proposed Rulemaking published at 58 DCR 3086 (April 18, 2011)[EXPIRED]; as amended by Notice of Final Rulemaking published at 58 DCR 4565, 4576 (May 27, 2011).