Understanding the Mechanics of Fixed-Price Incentive (Firm Target) (FPIF) Contracts (2024 Update)
Federal Acquisition Regulation (FAR) 16.403-1 provides the following description of an FPIF contract but does not provide insight to contractors on how to structure the FPIF pricing arrangement or alter the allocation of cost risk between the contractor and government. An FPIF contract specifies a target cost, a target profit, a price ceiling (but not […]