What is Cost Plus Award Fee in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: Cost Plus Award Fee

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A pricing arrangement in which payment by an organization to a supplier consists of two major components: The supplier's costs plus a fixed fee for supplying the requested goods or services An extra award fee for meeting certain pre-defined performance objectives

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• Key Concepts: 
  Cost Plus Award Fee is a type of contract used in the Public Sector Module of SAP’s GPR Procurement. This type of contract is used when the buyer wants to pay a fixed fee for the services provided, plus an additional fee based on the cost of the services. The buyer pays the contractor a fixed fee, plus an additional fee based on the cost of the services. This type of contract is often used when the buyer wants to ensure that they are getting value for their money. 
  
  How to use it: 
  In order to use Cost Plus Award Fee contracts in SAP’s GPR Procurement, buyers must first create a contract template. This template will include all of the details of the contract, including the fixed fee and any additional fees that may be applicable. Once the template is created, buyers can then create individual contracts using this template. When creating individual contracts, buyers can specify any additional fees that may be applicable. 
  
  Tips & Tricks: 
  When creating Cost Plus Award Fee contracts in SAP’s GPR Procurement, it is important to ensure that all of the details are accurate and up-to-date. It is also important to ensure that all of the fees are clearly stated and agreed upon by both parties before signing the contract. Additionally, buyers should make sure that they are aware of any additional fees that may be applicable before signing the contract. 
  
  Related Information: 
  For more information about Cost Plus Award Fee contracts in SAP’s GPR Procurement, please refer to SAP’s official documentation on their website. Additionally, buyers can contact their local SAP representative for more information and assistance with setting up and using Cost Plus Award Fee contracts in SAP’s GPR Procurement.