Dictionary of Procurement Terms

A contract that reimburses the contractor for all incurred costs that are allowable and allocable under the terms of the contract and applicable laws and regulations; may include profit or fee. May also be referred to as a Cost Plus Contract. See Also: Cost Contract.

An indefinite delivery/indefinite quantity contract for supplies or services that provides for the issuance of orders for services or supplies during the contract period. May also be referred to as a task order contract.

1. A binding legal agreement that links spend data by dates and allows for rebates and discounts through automated contract management systems. Pricing is based on historical usage. 2. A contract under which a contractor/supplier agrees to provide goods or services to a purchaser on a demand basis. See also: Market Analysis, Blanket Order.

A contract with automatic renewal clauses that continue unless a notice of termination is issued.

Contracts, either written or oral, in which all of the formal elements for contract creation exist.

A contract that provides for a price that cannot change during the contract period.

1. A contract providing for a firm price 2. A price that may be adjusted only in accordance with contract clauses, providing for revisions of the contract price under stated circumstances.

A contract under which the contractor is reimbursed at a fixed price for all services and materials, provided that the contract allows for periodic price increases or decreases at one or more stated intervals during the contract term. The amount of price increase or decrease is based on the movement of an independent price index (escalator) for goods, services, or labor. (Harney 1992)

A contract that provides for a firm fixed price during the initial period of the contact, after which, based on performance during the initial period, the contract price may be recalculated.

A contract for future supply of definite quantities of supplies or services. See also: Futures, Spot Price.