Click here to access the Fixed Price section of the Post-Award Sponsored Projects Guide on page 9 and 42.
When an award is issued as a fixed price agreement, the full value of the award will be paid to the campus in exchange for the full performance of the work. In other words, the fixed price payment mechanism is set up in such a way that UMBC agrees to provide services or deliver a product for an agreed upon, fixed amount of compensation. When working with a fixed price award, the Principal Investigator agrees to accomplish the project objectives within a specific timeframe for a set dollar amount. The award amount remains constant whether the actual costs for the project fall short or exceed the amount of the award.
Using the fixed price funding method can be risky because any over expenditures become the responsibility of the department. On the other hand, if the actual expenditures are less than the amount of the contract, the extra funds may be retained by the University and are no longer restricted. The fixed price method of funding is almost exclusively associated with contracts.
When an award is issued as a fixed price contract, the full value of the contract will be paid to the University in exchange for the full performance of the work. Upon project completion, both deficit and surplus balances on a fixed price agreement must be transferred to a non-sponsored account. For additional information on fixed price awards see the Fixed Price Process on OCGA’s website.