| Term |
Definition |
| Blanket Purchase |
A pre-contractual agreement with a vendor which allows an agency to make small purchases by issuing a purchase order for each individual purchase. |
| Competitive Sealed Bidding (IFB) |
A method of contracting that, through an “Invitation for Bids”, solicits the submission of competitive bids, followed by a public opening of the bids. A contract is then awarded to the responsible bidder who submitted the lowest priced responsive bid. |
| Competitive Sealed Proposals (RFP) |
A process which includes the submission of written technical and price proposals from one or more offerors and a written evaluation of each proposal in accordance with evaluation criteria set forth in the Request for Proposals. These criteria consider price, quality of the items, past performance, and other relevant factors. |
| Cost-Plus-Award-Fee Contract |
A cost-reimbursement type contract which provides for a fee consisting of an amount fixed at the beginning of the contract and potential award of additional fee amounts based upon a judgmental evaluation by the contracting officer, sufficient to provide motivation for excellence in contract performance. |
| Cost-Plus-Fixed-Fee Contract |
A cost-reimbursement type contract which provides for the payment of a fixed fee to the contractor. The fixed fee, once negotiated, does not vary with actual cost, but may be adjusted as a result of any subsequent changes in the work or services to be performed under the contract. |
| Cost-Plus-Incentive-Fee Contract |
A type of contract that specifies a target cost, a target fee, minimum and maximum fees, and a fee adjustment formula. |
| Cost-Reimbursement Contract |
A contract under which the District reimburses the contractor for those contract costs, within a stated ceiling, which are recognized as allowable and allocated in accordance with cost principles, and a fee, if any. |
| Definite-Quantity Contract |
A contract that provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries to be scheduled at designated locations. |
| Definitive Contract |
The contract executed pursuant to letter contract commitment. |
| Firm-Fixed Price Contract |
A contract where the price is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract. This type of contract places maximum risk and full responsibility for all costs and resulting profit or loss upon the contractor, and provides maximum incentive for the contractor to control cost and perform effectively. |
| Fixed-Price Contract with Economic Price Adjustment |
A fixed-price type contract that provides for the upward and downward revision of the stated contract price upon the occurrence of certain contingencies that are specifically defined in the contract. |
