Sign In
  • Question

    What language should be included in a CPFF subcontract? How does it differ from a T&M subcontract?


    Answer

    Time and materials (T&M) contracts have fallen out of favor in Government contracting and are considered the least desirable contract type. While cost-plus-fixed-fee contracts are less preferred than fixed-price contracts, they are favored over T&M contracts for cost control. There are some flowdown requirements from prime Government contracts to subcontracts, but it is largely up to the prime contractor as to what goes into its own contract with its subcontractors. Below are some suggested sources for understanding and creating different types of contracts, including CPFF contracts.
     
    http://guidebook.dcma.mil/18/ContRecRevconttypes.htm

    http://nawctsd.navair.navy.mil/Resources/Library/Acqguide/contract-types.htm

    FAR Part 16

    Open full Question Details