contract management body of knowledge knowledge area 1.2 contract principles

Contract Management Body of Knowledge Knowledge Area 1.2 Contract Principles

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Contract Management Body of Knowledge

Knowledge Area 1.2Contract Principles

Contract PrinciplesFundamentals of Acquisition that all contract

professionals must comprehend

May be codified in as part of a larger contract frameworkProduct or system “Life Cycle”

Page 3: Contract Management Body of Knowledge Knowledge Area 1.2 Contract Principles

GAO “Best Practices” Project Knowledge Points

1 2 3 4

Need Approval

Approval for Preliminary

Design

Approval for Detailed

Design

Approval for Full

Production

Knowledge Point 1

Knowledge Point 2

Knowledge Point 3

Technologies, time, funding, and other resources match customer needs

Design performs as expected

Production meets cost, schedule and

quality targets

Page 4: Contract Management Body of Knowledge Knowledge Area 1.2 Contract Principles

Knowledge, Risk and Contract Type

Cost Risk High Low

Requirements Definition

Poorly- defined Well Defined

Production Stages

Concept Studies & Basic Research

Exploratory Develop

Full-scale Deployment

Follow-on Production

Contract Type Various types of Cost Reimbursement

CPFF CPIF, FFIF, or FFP

FFP, FPIF, or FPEA

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