AGREEMENTS AND CONTRACTS

An agreement is any document or communication that defines the intentions of the parties. In projects, agreements take the form of contracts or other defined understandings. A contract is a mutually binding agreement that obligates the seller to provide the specified product, service, or result and obligates the buyer to pay for it. There are different types of contracts, some of which fall within a category of fixed-price or cost-reimbursable contracts.

• Fixed-price contracts. This category of contract involves setting a fixed price for a well-defined product, service, or result. Fixed-price contracts include firm fixed price (FFP), fixed-price incentive fee (FPIF), and fixed price with economic price adjustment (FP-EPA), among others.
• Cost-reimbursable contracts. This category of contracts involves payments to the seller for actual costs incurred for completing the work plus a fee representing seller profit. These contracts are often used when the project scope is not well defined or is subject to frequent change. Cost-reimbursable contracts include cost plus award fee (CPAF), cost plus fixed fee (CPFF), and cost plus incentive fee (CPIF).
• Time and materials (T&M). This contract establishes a fixed rate, but not a precise statement of work. It can be used for staff augmentation, subject matter expertise, or other outside support.
• Indefinite delivery indefinite quantity (IDIQ). This contract provides for an indefinite quantity of goods or services, with a stated lower and upper limit, and within a fixed time period. These contracts can be used for architectural, engineering, or information technology engagements.
• Other agreements. Other types of agreements include memorandum of understanding (MOU), memorandum of agreement (MOA), service level agreement (SLA), basic ordering agreement (BOA), among others.

4.6.9 OTHER ARTIFACTS

The documents and deliverables described here do not fit into a specific category; however, they are important artifacts that are used for a variety of purposes.

• Activity list. This document provides a tabulation of schedule activities that shows the activity description, activity identifier, and a sufficiently detailed scope of work description so project team members understand what work is to be performed.
• Bid documents. Bid documents are used to request proposals from prospective sellers. Depending on the goods or services needed, bid documents can include, among others:Request for information (RFI),Request for quotation (RFQ), andRequest for proposal (RFP).
• Metrics. Metrics describe an attribute and how to measure it.
• Project calendar. This calendar identifies working days and shifts that are available for scheduled activities.
• Requirements documentation. This document is a record of product requirements and relevant information needed to manage the requirements, which includes the associated category, priority, and acceptance criteria.
• Project team charter. This document records the project team values, agreements, and operating guidelines, and establishes clear expectations regarding acceptable behavior by project team members.
• User story. A user story is a brief description of an outcome for a specific user, which is a promise of a conversation to clarify details.