Common use of Types of Contracts Clause in Contracts

Types of Contracts. Recipient agen- cies may enter into a fixed-price or a cost-reimbursable contract with a food service management company, except that recipient agencies in CACFP are prohibited from entering into cost-re- imbursable contracts, in accordance with 7 CFR part 226. Under a fixed- price contract, the recipient agency pays a fixed cost per meal provided or a fixed cost for a certain time period. Under a cost-reimbursable contract, the food service management company charges the recipient agency for food service operating costs, and also charges fixed fees for management or services.