Examples
Worked examples
- Is an instance
A pharmaceutical company pays a university 200,000 GBP fixed-price for a defined preclinical study, regardless of actual cost.
- Is an instance
A university policy requires departmental review and PI sign-off for any fixed-price residual over 25 percent.
Counter-examples
Looks similar, but isn't
- Not an instance
A cost-reimbursement R01 is not fixed-price.
- Not an instance
A milestone-payment grant that itemises payment per milestone may be a variant but is distinct from a single fixed-price.
Editorial commentary
Fixed-price agreements are common in industry-funded research, some foundation grants, and certain service-style contracts (e.g., clinical trials). The recipient may retain a surplus if costs come in below the fixed price (subject to institutional policy on use of residual funds) and absorbs overruns. The model rewards efficiency but demands accurate cost forecasting at proposal stage. Residual balances over a threshold (e.g., 25 percent of award) typically trigger institutional review.
References
- FAR Part 16 Fixed-price contracts; AAU and AAMC guidance on fixed-price residuals.
Also known as
Fixed-price contract · Fixed-fee grant · Firm fixed-price
Machine-readable encodings
Use in your systems
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vocab-identifier="https://casrai.org/dictionary/"
vocab-term="Fixed-price grant"
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"@context": "https://schema.org",
"@type": "DefinedTerm",
"name": "Fixed-price grant",
"identifier": "https://casrai.org/dictionary/term/fixed-price-grant",
"description": "A grant or contract in which the sponsor pays a pre-agreed fixed amount on satisfactory completion of the work or defined milestones, without reimbursement of actual costs, transferring cost-overrun risk to the recipient.",
"inDefinedTermSet": "https://casrai.org/dictionary/domain/funding-lifecycle-and-financial-vocabulary/",
"url": "https://casrai.org/dictionary/term/fixed-price-grant",
"sameAs": [
"Fixed-price contract",
"Fixed-fee grant",
"Firm fixed-price"
],
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}
