4.2.2 Fixed Price

Policy No: RESEARCH 4.2.2  
Type of Policy: Administrative
Effective Date: November 2014
Last Revised: November 2014

Policy Owner: OSP
Policy Contact: Duane Hutchison, Executive Director, duane.hutchison@osp.gatech.edu

1. Policy Statement

This contract is most appropriate when there is a clear SOW and little risk to the Institute. On occasion, a sponsor will insist on a fixed price contract. If the PD/PI’s Lab/School determines that the financial/legal risks are minimal and acceptable, the researcher’s Lab/School will state that internal funds will be available in the event of a cost overrun, and that the deliverables do not include hardware or software items, some special programs may be accepted on a fixed price basis with the approval of the Vice President for Research. This is preferred contract type when a PI has subcontractors or will be issuing sub-awards on the project.

Per the Uniform Administrative Requirements (2 CFR 200), Subpart - C, this type of agreement cannot be used when there is mandatory cost sharing required.  Changes in PD/PI, project leader, project partner or scope of effort must receive the prior written approval of the Federal award agency or pass-through entity.  Additionally, the non-Federal entity must certify in writing to the Federal awarding agency or pass-through entity at the end of the Federal award that the project or activity was completed or the level of effort was expended. If the required level of activity or effort was not carried out, the amount of the Federal award must be adjusted.

Click here for the Georgia Tech Fixed Price Memo, which should be submitted along with the OSP Routing Form.

2. Scope

This policy applies to all Georgia Tech Faculty and Staff.

3. Related Information

Resource Link
Budget, Planning and Administration: http://www.policylibrary.gatech.edu/business-finance/firm-fixed-price-ffp-residual-balances .
Project Closeout in Grants Management System: http://www.policylibrary.gatech.edu/project-close-out-grants-management-system

4. Policy History

Revision Date Author Description
01-02-2014 OSP Rev 1.0
11-20-2014 OSP Rev 2.0
03-16-2015 OSP Rev 3.0