hybrid contract to the small-Business owner, and why the government is likely to choose you in the sealed-bidding process.

The hybrid contract contains the combination of both fixed-price and cost-reimbursable contracts. To understand the hybrid contract, therefore, one has to understand these other two types:

Fixed-price -- a contract that defines a fixed total price for a clearly defined scope and piece of work. Bonuses may also be included as well as other incentives. Vendors working for fixed-price contracts are legally held to complete their work at stated proscriptions with financial implications if they fail.

cost-reimbursable contracts -- this is a contract that involves payments / reimbursements to the vendor for all costs involved in the business and act of producing product / giving service as well as a fee that goes for vendor profit. Such contracts may also include financial incentive clauses that state that vendor wins or loses...
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