Become authorized vendor liquidating assets for bankruptcy

In this chapter, you will learn about the development and application of common compensation arrangements:).Contract type selection is the principal method of allocating cost risk between the Government and the contractor.When used in this chapter, the terms "contract type" and "type of contract" refer to the contract compensation arrangement.

The risk stems from industry-wide contingencies beyond the contractor's control.

Quantitative analysis techniques can provide invaluable information about the distribution of values around the most likely future cost.

For example, consider the confidence interval when your estimate is based on sampling analysis and the prediction interval when your estimate is based on regression analysis. If the variance is large, attempt to determine why the interval is so large and what can be done to narrow it, before you select a contract type to share the risk.

The Government must exercise surveillance during performance to ensure use of efficient methods and cost controls. Must include the applicable Limitation of Cost clause at FAR 52.232-20 through 23..

Encourage contractors to accept reasonable cost risks of contract performance.

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If necessary, you may require verification of the data submitted. The key provision in an FPEPA contract is the EPA clause.

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