A fixed-price contract that establishes a base contract price while allowing specified price adjustments if predefined economic conditions occur during contract performance. These adjustments, commonly called economic price adjustments, are tied to objective factors such as inflation, labor rates, material costs, or published market indices rather than the contractor’s actual costs. This contract type helps allocate the risk of significant economic fluctuations between the government and the contractor while preserving the benefits of fixed-price contracting. Under the Federal Acquisition Regulation (FAR), this arrangement is more commonly referred to as a Fixed-Price Contract with Economic Price Adjustment (FPEPA).
Fixed-Price Contract with Escalation (FPE)
A fixed-price contract allowing defined price adjustments tied to economic factors such as inflation or material costs during performance.
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BD, capture and proposal alignment is something most organizations believe they already have, until a deadline exposes where it breaks. At WPS, a Health Solutions Company, the three functions were moving in parallel but not in sync, and the cost was showing up long before anyone started writing.
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Related Glossary Terms
The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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