Selecting the right contract for your business is dependent upon the current situation
of your work force. CDI-Aerospace recognizes that each situation is unique, and is
willing to provide the flexibility needed to make each partnership a success. We provide
a number of different contracting options for doing business in the competitive aerospace
industry. Our three main contracting vehicles are: Time-and-Material, Labor-Hour, and
Time-and-Materials Contract (Statement of Work Outsourcing)
A time-and-materials contract provides for acquiring supplies or services on the basis of-
Direct labor hours at specified fixed hourly rates that include wages, overhead,
general and administrative expenses, and profit; and
Materials at cost, including, if appropriate, material handling costs as
part of material costs.
A time-and-materials contract may be used only when it is not possible at the time of
placing the contract to estimate accurately the extent or duration of the work or to
anticipate costs with any reasonable degree of confidence.
Description. A labor-hour contract is a variation of the time-and-materials
contract, differing only in that materials are not supplied by the contractor.
Fixed Price Project Based Contract
Description. Fixed-price types of contracts provide for a firm price or,
in appropriate cases, an adjustable price. Fixed-price contracts providing for an adjustable price
may include a ceiling price, a target price (including target cost), or both. Unless otherwise
specified in the contract, the ceiling price or target price is subject to adjustment only by
operation of contract clauses providing for equitable adjustment or other revision of the contract
price under stated circumstances.