Types of Government contracts

Abstract

The aim of this paper is to understand the existing types of government contracts, how they can be obtained and the major issues that can arise regarding these government contracts. I have also provided suitable recommendations on how to overcome certain issues in order to effectively avail government contracts which can prove fruitful for any business.

Table of Contents

Abstract2

Introduction6

Discussion6

Improving company's value6

Certainty of month income7

Federal Acquisition Regulations (FAR)8

Procurement Regulations8

Thesis Statement9

Factors affecting the choice of Government contract9

Types of Government contracts10

The Fixed price contract category11

The benefits and constraints of Fixed price contracts11

Fixed price incentive contract12

The benefits and constraints of Fixed price incentive contracts12

The benefits and constraints of Fixed price incentive contracts (Firm Target)13

The benefits and constraints of Fixed price incentive contracts (successive targets)13

Fixed price contracts with economic price adjustments13

Benefits and constraints of Fixed price contracts with economic price adjustments14

Fixed price redetermination Prospective contract15

The benefits of the fixed price redetermination contracts (Prospective)15

Fixed price redetermination Retroactive contracts16

The benefits and constraints of the Fixed price redetermination (Retroactive) contracts17

The Fixed price level of Effort contracts17

The benefits and constraints of Fixed price level of effort contracts17

Cost reimbursement contracts category18

The benefits and constraints of the Cost reimbursement contracts18

Cost plus fixed fee contracts19

The benefits and constraints of Cost plus fixed fee contracts19

Cost sharing contracts19

The benefits of the Cost sharing contracts20

Cost plus incentive fees contracts20

The benefits of cost plus incentive contracts21

Cost plus award fee contracts21

The benefits of Cost plus award fees contracts21

Performance based contract22

Benefits of the Performance based contracts22

Indefinite quantity or indefinite delivery contracts23

The benefits and constraint of the indefinite quantity/delivery contracts23

Definite quantity contracts24

The benefits and constraints of definite quantity contracts24

Requirement contracts24

The benefits and the constraints of requirement contracts25

Time and material and labor hour contract25

Benefits and constraints of time and material and labor hour contract26

Letter contracts26

Benefits and constraints of Letter contracts26

Government Wide acquisition contract27

Benefits of Government wide acquisition contract27

The procedure of obtaining a Government contract28

Sealed bidding29

Competitive Negotiations29

Issues related to government contracts31

Risk management and mitigation32

Dispute procedure32

Alternative options against disputes33

Partnerships33

Alternative Dispute Resolution33

Ombudsman34

Conclusion and recommendations34

Types of Government contracts

Introduction

The purpose behind this paper is to understand the prevailing government contracts in the United States of America, how they work and understand why there was a need to develop government contracts. I will begin with a brief history of how and why government contracts were adopted.

Discussion

Whether a person runs a small business, a corporation, sole proprietorship or partnerships. A company, irrespective of which form it is in requires protection for the business and the assets, having a government contract for business can protect a company's rights and they can also avoid litigation, appeals and business related dispute it is necessary to understand what a contract is. A contract can be understood as a legal mutually binding relationship in which the seller has an obligation to provide materials or services and the purchaser has to pay for those supplies and services. Businesses sell millions of dollars worth of goods and services to the US federal government. The government requires that some percentage of the contracts for goods and services be awarded to ...