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- There are several types of government contract pricing models12:
- Time and Materials (T&M): Payments are based on hourly rates and costs of materials used, up to a not-to-exceed amount.
- Cost-Reimbursement: Reimburses the Contractor for incurred costs.
- Cost-Plus-Fixed-Fee (CPFF)
- Cost-Plus-Incentive-Fee (CPIF)
- Cost-Plus-Award-Fee (CPAF)
- Firm-Fixed Price (FFP)
- Fixed-Price Contract with Escalation (FPE)
- Fixed-Price Incentive (FPI)
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Introduction to contract types and pricing models
- Time and Materials (T&M). Payments are based on hourly rates and costs of materials used, up to a not-to-exceed amount.
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