Lecture 16

1
Lecture 16 Contract Types

• CEE 474 Engineering Project Management

2
Basic Types

• Fixed Price
• Lump Sum
• Unit Price
• Cost Reimbursable
• Cost plus fixed-fee
• Cost plus award-fee
• Cost plus incentive-fee
• Cost plus percentage of cost (illegal on Federal
  projects)

3
Fixed Price

• Use a lump-sum contract when the project can be
  clearly defined and there is question on
  quantities.
• Use unit priced when the project can be
  definitized, it is easily apparent what the end
  results will be, but quantities cannot be
  determined at bid or prior to construction.
  Usually with earthwork, or unforeseen items
  (asbestos abatement)

4
Cost Reimbursable

• Used when the costs cannot, or final scope, can
  be determined prior to contract award at bid (or
  proposal) or during execution.
• TERC (Total Environmental Restoration Contract)
  at Ellsworth AFB, SD.
• http//www.state.sd.us/DENR/DES/Ground/Superfund/S
  ites_on_Superfund_List.htm
• DSS (Designated Seismic Sites Black Hills,
  Tulsa, Newport, WA)
• http//www.state.gov/t/ac/trt/5204.htm

5
Contract Sequences

• Design-Bid-Build The project is completely
  designed, then sent out for bid (or proposal),
  contractor selected and the project is
  constructed.
• Design-Build An RFP describes project
  requirements and a designer/builder is selected.

6
Alternate Contract Types

• IDIQ Indefinite Delivery, Indefinite Quantity
  A contract where various scopes of works are
  awarded as task orders (or delivery orders).
  These maybe sole source, negotiated, under an
  umbrella contract or competitively bid previously
  selected contractors (MATOC Multiple Award Task
  Order Contracts).

7
Delivery Order Contracts

• Delivery order contracts are awarded for specific
  type of work, such as design, housing
  construction, generator rewinds, debris removal,
  etc. Delivery or task orders are made under the
  umbrella contract as the need arises.