Dictionary of Procurement Terms

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Search Results: 281-290 of 353 results for “C”

  • Cost Plus Fixed Fee Contract (CPFF)

    A contract whereby the contractor is reimbursed for its actual incurred cost for material, labor, and other agreed to incidentals, plus a fixed sum established in the contract. (Harney, 1992)

  • Cost Plus Incentive Fee Contract (CPIF)

    A contract whereby the contractor receives additional compensation for keeping the total amount expended below the agreed-upon maximum contract amount or for achieving certain pre-specified goals during the performance of the contract. Often used in construction contracts to assure completion of the building project prior to the targeted completion date.

  • Cost Plus Percentage of Cost Contracts

    An agreement on a construction project in which the contractor is provided a specified percentage profit over and above the actual costs of construction. These contracts are considered poor business practice because the contractor has little incentive to hold down costs. This type of costing method is prohibited in federal purchasing. A Cost Plus Fixed Fee Contract is a better approach.

  • Cost Principles

    The regulatory principles used to determine the allowability of incurred costs for the purposes of reimbursement under the provisions of the contract.

  • Cost Realism

    A factor considered during cost analysis of a proposal to determine if the costs proposed are realistic in light of historical experience, costs on similar projects, market conditions over the life of the proposal, or other factors.

  • Cost Reduction

    Generally realized when a manufacturer is able to lower the material or labor costs used to make its products; interchangeably used to indicate a lower price paid by the buyer from what was previously paid.

    See Also: Cost Savings, Price Reduction

  • Cost Replacement

    CANADIAN The cost at current prices that is expected to be incurred to replace an item.

  • Cost Savings

    A realized and measurable reduction in material, resource, or labor expense(s) associated with the production and delivery of an item or service. Primarily associated in the manufacturing of an item; interchangeably used to indicate a lower price paid by the buyer from what was previously paid.

    See Also: Price Reduction, Cost Reduction

  • Cost Sharing

    A type of contract that is used when it is impossible to firmly estimate costs and there is a high probability that the contractor will receive a substantial present or future commercial benefit. This type of contract may be used in research and development areas, as well as public-private partnerships.

  • Cost, Insurance, Freight (c.i.f.)

    A quoted price that includes marine insurance in addition to the cost of the item and transportation charges to destination; commonly used when shipping via ocean freight.

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