FPIF Calculator

FPIF Calculator takes standard inputs for a fixed price incentive (firm target) government contract (target cost, target profit percentage, ceiling price percentage, and government/contractor share ratio) and calculates the target price, ceiling price, point of total assumption (which is cost where the FPI(F) contract converts to a fixed price contract), and the profit at the point of total assumption. FPIF Calculator also calculates the final cost of an FPI(F) contract based on the incurred costs. This app easily performs your complex FPI(F) contract calculations and enables quick comparison of various contract geometry scenarios. The ability to rapidly calculate and compare various FPI(F) contract geometry scenarios facilitates enhanced understanding of the tradeoff alternatives and inherent values embedded in every FPI(F) contract. Reference: FAR 52.216-16, Incentive Price Revision—Firm Target (Oct. 1997).

Keep your eye out for future versions of this app that will graph the FPI(F) contract geometry.