Budgeting for Fixed Price Contracts

Incoming Funding

The University of Oregon (UO) sometimes receives contracts from sponsors and sometimes sends contracts to sponsors for work to be performed by the UO in which the UO will receive incoming funding (payments) from a sponsor.

Budget and Payment Schedule for a Fixed Price Contract

  1. No budget should be submitted to a sponsor at the proposal stage or at the contracts stage for a Fixed Price Contract, unless the sponsor requires a summary level budget outlining estimated cumulative amounts of estimated costs per cost category shown on a fixed-price summary level type of budget (example below).

     
  2. A payment schedule should appear in the Statement of Work for a Fixed Price Contract.
    1. If the Statement of Work has no Milestones or Deliverables, the Payment Schedule outlined in the Statement of Work should display amounts based on execution of the Fixed Price Contract.
    2. The examples below are all for Incoming Funding for receipt of funding from a sponsor outside the University of Oregon.
      1. The Total Amount of this Fixed Price Contract shall not exceed a Total of $XX,XXX unless agreed upon by both parties. Full Payment is due to the UO on full execution of the contract.
      2. The Total Amount of this Fixed Price Contract shall not exceed a Total of $XX,XXX unless agreed upon by both parties. Payment of 50 percent of the Total Amount is due to the UO on full execution of the contract. The remaining 50 percent is due to the UO on submission of the Final Report.
      3. The Total Amount of this Fixed Price Contract shall not exceed a Total of $XX,XXX unless agreed upon by both parties. Payment of 25 percent of the Total Amount is due to the UO on completion of Milestone (or Deliverable) #1. Payment of 25 percent of the Total Amount is due to the UO on completion of Milestone (or Deliverable) #2. Payment of 25 percent of the Total Amount is due to the UO on completion of Milestone (or Deliverable) #3. Payment of 25 percent of the Total Amount is due to the University of Oregon on completion of Milestone (or Deliverable) #4.

EPCS Records for Fixed Price Contracts

Award Tab

  • Under the "Award" Tab of the EPCS record, select the Award Type, "Fixed Price Contract."

Budget Tab

  • In estimating the Total Project Cost of the Fixed Price Contract, all internal budgets displayed under the Budget Tab of the EPCS record must include the University's full federally-negotiated indirect costs unless formal documentation of the sponsor's restriction is submitted to your SPS Pre-award SPA.
  • Under the "Budget" Tab, when under the "Awards" Tab, the Award Type: "Fixed Price Contract" is selected the Budget Tab will display the words, "FIXED PRICE CONTRACT selected under the Award tab.appear. The EPCS record displays a Fixed Price Contract Budget Template under the Budget tab of the EPCS record.  The Fixed Price Contract Budget Template includes a worksheet tab displaying an Internal Budget which is used for the purpose of internally estimating the total cost of the Fixed Price Contract.
  • The Internal Budget is for internal use and should not be submitted to the sponsor at the proposal stage and should not appear in the Fixed Price Contract during correspondence with the sponsor.
  • There is a separate tab at the bottom of the Excel budget worksheet on the Fixed Price Contract Budget Template which reads "FIXED PRICE FORMAT FOR SPONSOR." If the sponsor requests a summary level budget, this FIXED PRICE summary level format can be used for sending to the sponsor.
  • If the sponsor requests or requires a budget at the proposal stage, the budget submitted to the sponsor should be displayed in the Statement of Work in a format that is summary level which does not commit or restrict detailed line-by-line budget items such as detailed line-by-line items for supplies and services, or individual salary and fringe benefit amounts and percentages of effort for individual project personnel.

Example Project Budget

Expense category Amount
UO Personnel $30,000
Services/Supplies/Equipment $5,000
Travel $2,000
Other costs $3,000
University overhead/indirect $12,280
Total Project Cost $52,280

Example Payment Schedule

  • Payment by the Sponsor to the University of Oregon under this Fixed-Price Agreement shall be made in accordance with the following schedule:
Percentage payment amount
25% Payment #1 on Full Execution of Fixed Price Contract $13,070
50% Payment #2 on Project Report delivered including each site analysis $26,140
25% Payment #3 on submission of Final Report $13,070
  Total Fixed Price Agreement $52,280



For questions, contact your Pre-Award Sponsored Projects Administrator.