Procurement Management Cheat Sheet

Procurement Management — Quick Reference

Contract Types & Risk

Type	Subtypes	Risk to Buyer	Risk to Seller	Best When
Fixed Price (FP)	FFP, FPIF, FPEPA	Low	High	Clear scope
Cost Reimbursable (CR)	CPFF, CPIF, CPAF	High	Low	Unclear scope
Time & Materials (T&M)	—	Medium	Medium	Small, undefined work

Fixed Price Subtypes

• FFP (Firm Fixed Price) — Price is set, no adjustments. Maximum risk to seller.
• FPIF (Fixed Price Incentive Fee) — Fixed price with incentive for exceeding targets. PTA is important.
• FPEPA (Fixed Price with Economic Price Adjustment) — Allows for price changes due to inflation on long-term contracts.

Cost Reimbursable Subtypes

• CPFF (Cost Plus Fixed Fee) — Costs reimbursed + fixed fee. Fee doesn't change.
• CPIF (Cost Plus Incentive Fee) — Costs reimbursed + incentive for meeting targets.
• CPAF (Cost Plus Award Fee) — Costs reimbursed + subjective award fee based on performance.

Procurement Process

1. Plan Procurement Management — Make-or-buy analysis, determine contract types
2. Conduct Procurements — Solicit bids, evaluate proposals, award contracts
3. Control Procurements — Manage relationships, monitor performance, make changes

Key Documents

• SOW (Statement of Work) — Describes the work to be performed
• RFI — Request for Information (gathering market data)
• RFP — Request for Proposal (detailed evaluation criteria)
• RFQ — Request for Quotation (price-focused)
• IFB — Invitation for Bid (lowest price wins)