D.C. Mun. Regs. tit. 27, r. 27-2499
When used in this chapter, the following words and terms shall have the meanings ascribed:
Commercial-type products- a product such as an item, material, component, subsystem or system, sold or traded to the general public in the course of normal business operations at prices based on established catalog or market prices.
Cost- the amount paid or charged for something, excluding the contractor's profit.
Cost-plus-award-fee- a cost-reimbursement type contract that 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 cost-reimbursement type contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. After performance of the contract, the fee payable to the contractor is determined in accordance with a negotiated formula.
Cost-reimbursement contract- a contract which provides for payment of allowable costs incurred in the performance of a contract, to the extent prescribed in the contract. This type of contract establishes an estimate of total cost for the purpose of obligating funds, and establishes a ceiling which the contractor may not exceed (except at its own risk) without prior approval of, or subsequent ratification by, the contracting officer.
Definite-quantity contract- a contract that provides for delivery of a definite quantity of specific goods or services for a fixed period, with deliveries to be scheduled at designated locations.
Definitive contract- the contract executed pursuant to letter contract commitment.
Director- the Director of the Office of Contracting and Procurement or the District of Columbia Chief Procurement Officer.
Firm-fixed-price contract- a fixed-price contract that provides for a price that 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 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.
Fixed-price contract with prospective price redetermination- a contract type which provides for a firm- fixed-price for an initial period of contract deliveries or performance and for a redetermination of the price for subsequent periods of performance at a stated time or times during performance.
Fixed-price incentive contract- a fixed-price type contract that provides for adjusting profit and establishing the final contract price by a formula based on the relationship of final negotiated total costs to total target costs. After performance of the contract, the final cost is negotiated and the final contract price is then established in accordance with the formula.
Incentive contract- a fixed-price or cost-reimbursement type contract which provides for relating the amount of profit or fee payable under the contract with the contractor's performance in order to obtain specific procurement objectives.
Indefinite-quantity contract- a contract that provides for an indefinite quantity, within written stated limits, of specific goods or services to be furnished during a fixed period, with deliveries to be scheduled by placing orders with the contractor. The contract requires the District to order and the contractor to furnish at least a stated minimum of goods or services.
Labor-hour contract- a contract that is a variant of the time-and- materials contract differing only in that materials are not supplied by the contractor.
Letter contract- a written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing or delivering goods or performing services
Maximum liability- the amount, not to exceed fifty percent (50%) of the overall contract price ceiling, obligated by a letter contract over which the District cannot be liable if the letter contract is terminated.
Price- the amount the District anticipates it will pay the contractor for full performance under the terms of a contract, including costs and profit.
Price ceiling - an amount established during negotiations or at the discretion of the contracting officer which constitutes the maximum that may be paid to the contractor for performance of a contract.
Requirements contract- a contract that provides for the filling of all actual purchase requirements of designated District agencies for specific goods or services during a specified contract period, with deliveries to be scheduled by placing orders with the contractor as required.
Target price- an amount established by the contracting officer during negotiations to encourage the contractor to control contract costs. The contractor's final profit varies inversely with the final cost of the contract.
Term contract - a requirements contract or an indefinite-quantity contract.
Time-and-materials contract- a type of contract that provides for the procurement of goods or services on the basis of direct labor hours at specified fixed hourly rates (which include wages, overhead, general and administrative expenses, and profit) and material at cost.
D.C. Mun. Regs. tit. 27, r. 27-2499