Typical types of procurement contracts

Procurement is the acquisition of goods, services or works from external source. A procurement contract is a legal binding agreement between the buyer and the seller.

In general, there are 3 broad categories of procurement contracts:

• Fixed price (FP)
• Time and material (T&M)
• Cost reimbursement (CR)

Firm Fixed Price (FFP) or Lump Sum

• Specifications or requirements are well-defined with clear statement of work.
• There exist sufficient competition to determine a fair and reasonable fixed price.
• If actual cost is more than agreed upon, seller bear the additional cost.
• Buyer has the least cost risk.
• To be fair to both parties, both buyer and seller need to have complete know-how of the work for precise price fixing.

Fixed Price Incentive Fee (FPIF)

• Profits are adjusted based on seller meeting performance criteria in a progressive manner.
• Performance can be measured in term of cost, time, and quality.
• Successive targets are given to the seller.

Fixed Price Award Fee (FPAF)

• An award (a.k.a. bonus) will be paid based on performance.
• The total possible award amount is determined in advance and apportioned out based on actual performance.

Fixed Price Economic Price Adjustment (FP-EPA)

• Normally applicable to long contract with uncertainties in future prices.
• Price is adjustable depend on future cost of supplies and equipment required to be used.

Purchase Order (PO)

• Simplest type of fixed price contract.
• Only needs to be signed by buyer (unilateral party signing).

Time and Material (T&M)

• Commonly used for service efforts whereby the level of effort is difficult to be determined when contract was awarded.
• Buyer pays on per-hour or per-item basis.

Cost Contract (CC)

• Cost is unable to be estimated accurately for fixed price due to exact scope of work is uncertain.
• Seller receive no fee and make no profit. Charge as per actual cost.

Cost Plus Fee (CPF) / Cost Plus Percentage of Cost (CPPC)

• Seller makes profit on top of the cost.
• Fee varies with the actual cost.

Cost Plus Fixed Fee (CPFF)

• Fee is pre-negotiated and fixed before work begins.
• Fee does not vary with the actual cost.

Cost Plus Incentive Fee (CPIF)

• Target cost is estimated and target fee is determined before work begins.
• Seller will earn incentive from the savings if actual cost is less than the target cost.
• Meanwhile, seller will also need to share cost overrun with buyer.

Cost Plus Award Fee (CPAF)

• Buyer pays all the cost and a base fee plus performance bonus.
• The award amount is pre-determined and apportioned out depending on actual performance.
• Seller has the least cost risk.

My Jean Perry coating cool gel comfort memory pillow

I have just bought some Jean Perry coating cool gel comfort memory pillows for my household.

As described in the product's description, the pillow is made with high density memory foam that is able to provide nice comfortable neck support for all kind of back, side and stomach sleepers. It has highly ventilated 3D mesh gusset allowing the memory foam within to "breath" thus minimizing heat build-up.

On one side, it is coated with a layer of cooling gel (the dark blue layer in the photo), material similar to those used in fever cooling pad. The other side of it does not have this cooling gel layer. As the pillow design is flat on both side (non-contour design), you can sleep with either side of it. When the sleeping environment is warm, you can sleep on the side with cooling gel to enjoy its cooling effect; when the environment is cold (such as on top of highlands), you can also sleep on the side without the cooling gel.

The pillow comes wrapped with a blue colour compact cooling satin stripe cover which is said to be naturally hypoallergenic, anti-microbial and dust mites resistant. Just like the fever cooling pad, the cooling gel has a kind of chemical smell. But after covered with this cooling satin stripe cover, you can hardly smell it. So don't worry about the smell with this Jean Perry pillow, as it might be an issue with certain competitors but for this Jean Perry pillow with satin stripe cover, the smell is mostly eliminated.

This is what inside the packaging box: the pillow nicely wrapped in plastic.

Sleeping with this pillow is really comfortable. You will not feel too cold at your head, as the cooling effect is more on eliminating heat from building up rather than providing ice cooling type of effect, so it is just nice and perfect for sleeping. Perhaps the effect can prevent people who used to sweat on pillow from sweating again.

You might note that below the "Jean Perry" trademark logo there is a word "Paris". I believe that "Paris" is part of the branding, rather than a place on earth. Jean Perry is actually a Malaysia product made by public listed company Yoong Onn Corporation Bhd (YOCB, 5159). Other brands of products by this same company include Novelle, Ann Taylor, Louis Casa, Genova, Niki Cains, Diana, Cotonsoft, Red Danielle, etc. The same company also has retail outlets called Home's Harmony which you can find in certain shopping malls, mostly in Klang Valley. Nevertheless, their products are of good quality and match with their price tag. Price discount is given during their sales promotional roadshow event in particular shopping mall, and sometimes in their online shop in Lazada.

REMAX RC-FC2 Letto handphone/GPS/tablet holder mount stand with 3-in-1 magnetic charging cable for car dash or table top

The REMAX RC-FC2 Letto car holder is apparently an upgraded version of the RC-FC1 holder.

It is improved to support 360 degree rotation for easy adjustment of the device's viewing angle. Its nickel metal plate can also lean forward and backward with 90 degree adjustment. It now comes with a 3-in-1 cable connector consisting lightning port, micro-USB port and USB Type-C port.

A sticky PU cushion is placed in front of its metal plate holder to hold the device placed on it at firm place to prevent dropping during situation such as emergency braking or sharp turning at high speed. Its round shape base is made of same material. This is how it looks like after assemble:

You can put it on your car dash, mainly for navigation purpose. You can also put it on your table top and act like a charging station.

It is strong enough to hold a 10" tablet firmly without much problem.

When you use navigation app that makes use on GPS function and will keep the screen always on, such as Waze or Google Maps navigation, your phone/tablet battery will drain out pretty fast.

The magnetic charging cable of the REMAX RC-FC2 is able to help you maintain the battery level or even to charge it to higher level. When charging, its LED light at the receptacle will turn red. When the device is fully charged, or the RC-FC2 is not performing charging action, the LED light at the receptacle is blue in colour.