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  • Question

    In structuring contractual line items on a cost plus incentive fee contract and cost plus award fee items. If the award fee is earned and awarded on a seperate line item what would the proper line item structure be.


    Answer

    Cost-reimbursement contracts can in fact have fixed-price line items. Contract types are often combined, with both cost-reimbursement and fixed-price CLINs co-existing on the same contract. Modifying the contract to pay the award fee using a FFP line item should not present a problem. 

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