Section 5-D112. FIXED-PRICE CONTRACTS

112.1Fixed price contracts include several variants: 

 

(a)Firm, fixed price contracts;

 

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

 

(c)Fixed price incentive contracts. 

 

112.2Unlike cost reimbursement contracts, any type of fixed price contract obligates the contractor to complete the contractually-specified work for a fixed price.

 

112.3A firm fixed price contract provides for a price that is not subject to adjustment, except in the event of a change to the contract work.

 

112.4A 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.

 

112.5A 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 Director of the Office of Public Education Facilities Modernization, pursuant to section 702(b) of the District of Columbia Public Education Reform Amendment Act of 2007 (Act), effective June 12, 2007 (D.C. Law 17-9; D.C. Official Code § 38-451(b)) (2007 Supp.).

source

Notice of Emergency and Proposed Rulemaking published at 57 DCR 8514 (September 17, 2010)[EXPIRED]; as amended by Notice of Final Rulemaking published at 57 DCR 11189, 11199 (November 26, 2010).