Primary Government Contract Types

Primary Government Contract Types There are three primary types of government contracts: fixed price, cost reimbursable and time and materials. Fixed price contracts have a negotiated price that remains the same over the life of the contract so the amount you will be paid remains the same. Cost reimbursable contracts involve the government paying for the actual cost to complete the work. Cost reimbursable contracts have a variety of schemes for providing a fee or profit to the contractor. Time and materials contracts have agreed to rates for labor and materials that do not change over the contract and are billed as incurred. Time and materials contracts can have annual escalation rates incorporated in them to reflect increasing costs. Cost Plus Incentive Fee (CPIF) A cost plus incentive fee contract is one where the vendor is reimbursed for costs incurred plus fee based on a formula tied to costs. The fee formula can vary and is normally designed to encourage the contractor to keep costs down. Cost Plus Award Fee (CPAF) A cost reimbursement contract where the objectives of the contract are determined to be completed by subjective means. The contractor receives reimbursement for their costs plus the award fee. Cost plus award fee contracts can not be used when cost plus fixed fee or cost plus incentive fee contract would be more appropriate. Cost Plus Fixed Fee (CPFF) A cost plus fixed fee contract reimburses the contractor for the cost incurred to complete the work plus a negotiated fixed fee. The fee does not change based on cost of the work. Cost is calculated based on actual amounts paid for labor and materials plus fringes, overhead and general and administrative rates. Fringe, overhead and general and administrative rates are computed annually and reflect the actual corporate costs. Many government contracts are cost reimbursable. Firm Fixed Price or FFP contracts have detailed requirements and a price for the work. The price is negotiated before the contract is finalized and does not vary even if the contractor needs to expend more or less resources than planned. Firm fixed price contracts require the contractor to manage the costs of the work in order to make a profit. If more work than planned is required then the contractor may lose money on the contract unless a contract modification is obtained. Firm fixed price contracts can also be more profitable if costs are closely managed. Fixed Price Contract With Incentive Fee Target (FPIF) The fixed price contract with incentive fee contract is a firm fixed price type contract (as compared to a cost reimbursable). The fee can vary depending on whether the contract comes in above or below planned cost. These contracts do contain a ceiling price to limit the government’s exposure to cost overruns. Fixed Price With Economic Price Adjustment Fixed price with economic price adjustment contracts are fixed price contracts but they contain a provision to account for contingencies and changing costs. An example is the contract may contain an adjustment for an annual salary increase. Time Materials contracts have rates negotiated before contract award for the cost by labor category and materials. As work is completed the contractor bills against the rates agreed to in the contract regardless of the actual cost. Know which contract type is planned in advance of submitting a proposal as well as during contract negotiations. Knowing the contract type allows you to plan the project and how best to manage it for success. Before a company can get a cost reimbursable contract it must have an approved accounting system.

Structure of a Descriptive Essay

Structure of a Descriptive Essay The descriptive essay can be arranged in one of many organization patterns, and you will soon find that one style is best for your particular topic. Some effective organization patterns for a descriptive essay are spatial, which is best used when you are describing a location; chronological organization, which is best used when you are describing an event; and functional organization, which is best used when you are describing how a device or process works. Start with a Mind Dump Before you can begin writing your essay or deciding upon an organizational pattern, you should put everything you know about your subject on a piece of paper in a mind dump. In this first stage of information gathering, you should not worry about organizing your information. To start out, simply write down every item, characteristic, or feature that you can think of, allowing your thoughts to flow onto the paper. Note: A giant sticky note is a fun tool for mind dumping. Once your paper is filled with bits of information, you can use a simple numbering system to begin identifying topics and subtopics. Simply look over your items and â€Å"clump† them together in logical groups. Your groups will become major topics that you address in body paragraphs. Come Up with an Overall Impression The next step is to read over your information to come up with one major impression that you get from it all. Ponder the information for a few moments and see if you can boil it all down to one thought. Sound difficult? This list below shows three imaginary topics (in bold) followed by examples of a few thoughts that might be generated about each topic. You will see that the thoughts lead to an overall impression (in italics). 1. Your City Zoo - The animals were arranged by continents. Each area featured interesting plants and flowers from the continents. There were beautiful murals painted everywhere. Impression: the visual elements make this a more interesting zoo. Structure: Since a zoo is a place, the best structure for the city zoo essay is likely to be spatial. As a writer, you would begin with an introductory paragraph that ends with a thesis statement based on your impression. A sample thesis state would be While the animals were fascinating, the visual elements made this zoo most interesting. You could write your essay as a walking tour, visiting (describing) one area at a time.Each area would be described in your body paragraphs.You would use descriptive language to convey the striking visual elements of each area. 2. A Birthday Party - The birthday boy cried when we sang to him. He was too young to know what was happening. The cake was too sweet. The sun was hot. Impression: this party was a disaster! Structure: Since this is an event in time, the best structure would likely be chronological. Your introductory paragraph would build up to the conclusion (your impression) that this party was not a success!Each disastrous event would be described in individual body paragraphs. 3. Making a Cake from Scratch - I learned what sifting was, and it was messy. Creaming butter and sugar takes time. It’s hard to pick slippery egg shell bits out of flour. We really take box mixes for granted! Structure: The best structure would be functional. You would build up to the (surprising) complexity of making a cake from scratch.Body paragraphs would address the difficulty you encountered at each turn. End with a Conclusion Every essay requires a good conclusion to tie things up and make a tidy and complete package. In your concluding paragraph for a descriptive essay, you should summarize your main points and explain your overall impression or thesis in new words.