
State Negotiated Agreement Price Schedule III Form
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People also ask
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What is the cost of money in Government contracts?
Cost of Money is an imputed cost related to the cost of contractor capital committed to facilities and it is not a form of interest. Contractors often use their own money (capital) to invest in facilities and equipment that benefit the Government.
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What are the three 3 main ways in which the contract price may be expressed or calculated?
Generally you'll come across one of three types of contract on a project: fixed price, cost-reimbursable (also called costs-plus) or time and materials.
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How is the cost of money calculated?
The time value of money is the cost of money and is measured by the interest due over the loan period. For example, you borrow $100 at 12% annual interest compounded monthly. Although the interest is expressed as an annual rate, the period is actually a month.
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What does the cost of money mean?
The cost of money is the opportunity cost of holding money in hands instead of investing it. The trade-off between money now (holding money) and money later (investing) depends on, among other things, the rate of interest that can be earned by investing.
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What are the three types of cost-reimbursement contracts?
Types of Cost-Reimbursement Contracts Cost-plus-fixed-fee (CPFF) contracts. Cost-plus-incentive-fee (CPIF) contracts. Cost-plus-award-fee (CPAF) contracts. Cost plus percentage of cost (CPPC) contracts.
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What is a cost of money rate?
Cost of money is a rate that is allowed on certain government contracts. This rate is applied to project costs in addition to the regular provisional rates. Cost of money is sometimes referred to as facilities cost of money or cost of capital.
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What is the cost of a contract?
Contract costing is a form of particular order costing that contractors generally apply for orders of a long duration. However, some prefer calling it "terminal costing" because after completing the work, the account is closed immediately.
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What must a price negotiation memorandum contain?
(1) The purpose of the negotiation. (2) A description of the acquisition, including appropriate identifying numbers (e.g., RFP No.). (3) The name, position, and organization of each person representing the contractor and the Government in the negotiation.
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