A fixed price contract or agreement is where a pre-determined/fixed amount of funds is awarded by the sponsor to complete a defined scope of work. Ideally, a fixed price account should be fully expended during the award period. If more than the approved budget is expended, the University is responsible to cover the deficit. Occasionally, there may be minimal residual balances at the end of the project. These residual balances may be retained by the University.
Fixed price account transfers
Any deficit or residual balance will be transferred to the PI’s College, School or department’s Fixed Price control account. Fiscal officers should submit a request to establish this account to ORS. University and departmental spending guidelines apply.
The following six criteria must be met in order for a fixed price transfer to the College, School or department’s account:
- The award is a fixed price contract
- The scope of work is complete and to the satisfaction of the sponsor.
- All payments have been received.
- All expenses have been recorded in the project account.
- The account is ready to be closed.
- The project end date has been reached.
Use the Form 2 – Fixed Price – Residual Balance Closeout (click to view) form to request balance transfer. Upon approval of transfer request, the ORS accountant will prepare a Transfer of Funds edoc to transfer the funds. The FA will be included in the acknowledgement routing of the edoc.
Fixed price account extensions
If an end date for the project is not specified in the award document, an extension to the end date initially established for the project account in the University’s financial system may be requested if the project is not complete. The Internal Account Extension Request (click to view) should be completed and submitted to ORS. The new end date should reflect the PI’s best estimate of when all project activities are likely to be completed.
If an end date is not specified in the award document and the project has been completed, a one-year extension to the project account end date established may be available if the following criteria are met:
- The award is a fixed price contract and all project deliverables have been met to the satisfaction of the sponsor,
- All project funds have been received from the sponsor, and
- All project expenses have been charged to the project account.