CHAPTER 5
Fixed-Price-Level-of-Effort Contract
When a budget is limited to $150,000 and it is not possible to develop a clear statement of work or to assess the number of hours required to complete a task, a fixed-price-level-of-effort (FPLOE) contract may be the appropriate contract type. Understanding this contract type’s definition, use, performance requirements, and financial elements will aid the CO in making an informed decision on whether an FPLOE is the appropriate contract type for the proposed work.
DEFINITION
“A firm-fixed-price, level-of-effort term contract requires (a) the contractor to provide a specified level of effort, over a stated period of time, on work that can be stated only in general terms and (b) the Government to ...
