Fixed Price contracts

[Green]

Upon completing a Government type Fixed Price contract and all deliverables are delivered. What is the standard for accounting for any underrun?

[Navy_Contracting_4]

Upon completing a Government type Fixed Price contract and all deliverables are delivered. What is the standard for accounting for any underrun?

Are you asking about Firm Fixed Price or Fixed Price Incentive?

In a firm fixed price contract, any amount underrun becomes profit. If the contract is Fixed Price Incentive, it's different.

[joel hoffman]

Upon completing a Government type Fixed Price contract and all deliverables are delivered. What is the standard for accounting for any underrun?

Are you asking about underruns of estimated quantities of unit priced items or some combination of overruns and underruns that results in a net underrun, etc.?

[joel hoffman]

Upon completing a Government type Fixed Price contract and all deliverables are delivered. What is the standard for accounting for any underrun?

Green, where are you?

Did you deliberately ask an obscure question, then ignore the requests for clarification? Or did you obtain an answer somewhere else? Just wondering. Perhaps you weren't sure about what you were asking.

I didn't know which perspective you were referring to - a contractor's internal accounting system or the government's accounting systems.

The two respondents didn't know what you were asking about.

It would be polite to reply with some type of clarification or "I'm not sure what I'm asking about", etc. For that matter, at least a "Never mind" would be okay, too.

Thanks.