Chapter12 Summary - Chapter 12 Summary Procurement...

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Chapter 12 Summary: Procurement Management Key Terms Bid - also called tender, quote or quotation- a document prepared by sellers to provide price information for standard items, that have been clearly defined by the buyer. Cost Plus Fixed Fee (CPFF) contract : A contract in which the buyer pays the supplier for allowable performance costs plus a fixed fee payment, usually based on a percentage of estimated costs. Cost Plus Incentive Fee (CPIF) contract : A contact in which the buyer pays the supplier for allowable performance costs along with a fixed fee, plus an incentive bonus if the supplier reduces their costs below an agreed-upon sum. Cost Plus Percentage of Costs (CPPC) contract : A contract in which the buyer pays the supplier for allowable performance costs plus a predetermined percentage, based on total costs. Cost-reimbursable contracts: Contracts involving payment to the supplier for direct and indirect actual costs. Fixed-price (lump-sum) contacts:
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Chapter12 Summary - Chapter 12 Summary Procurement...

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