Back to Basics: “Contracts: By Compensation”

View common types of contract compensation in this infographic.

Published: Jun 13, 2024
Authored by: H J Schmitt, SCMP
SUBSCRIBE HERE.

Understand contracting concepts in quick comparisons and our downloadable resources. Follow supply chain management and business development topics for greater detail in case studies and articles.

📖 Download 📖

📖 Download 📖

Contracts by Compensation Type

1. Firm Fixed Price (FFP)
2. Fixed Price Economic Price Adjustment (FPEPA)
3. Fixed Price Firm Target Incentive Agreement 
4. Fixed Price Award Fee (FPAF)
5. Fixed Price Prospective Price Redetermination (Reduction )
6. Cost Contract and Cost Sharing Contract (C or CS)
7. Cost Plus Incentive Fee (CPIF)
8. Cost Plus Award Fee (CPAF)
9. Cost Plus Fixed Fee (CPFF)
10. Labour Hours (Billable Time)
11. Time and Materials (TM)
12. Other Types: Contracts of Performance, Blanket Purchase Orders (BPO), General Service Agreements (GSA), Indefinite Delivery, Indefinite Quantity (IDIQ)

More about Purchase Order Types here.

The acronyms used and specific titles of the contract types shown here may be different depending on which organization is using them. This non-exhaustive list of contract types related to compensation methods can be found in greater detail using the links in the references section below and are suggested as recommended reading.

Back-To-Basics with Supply Chain Logistics Consulting 

Business leaders can revaluate what is essential to their company’s success and leverage their own unique understanding of the industry for a pro-active approach to decision making. Manage rising prices, changing priorities, and unplanned disruptions while building a resilient business to withstand any challenge. Subscribe and follow along while Supply Chain Logistics Consulting reviews the basic practices and concepts that help business professionals to adopt and maintain a focused approach to supply chain management and business process improvement. 

We’re grateful for those who choose to show their appreciation and those who simply enjoy our content. 

At Supply Chain Logistics Consulting our mandate is to improve the way things are done.

Do you have a specific problem you are solving? A unique solution or a successful story about making a significant change?

Let us know. We would be happy to hear from you.

Learn more on our website and subscribe on all our channels.