If the final negotiated cost exceeds the price ceiling, the contractor. absorbs the difference as a loss. Because the profit varies inversely with the cost, this contract. type provides a positive, calculable profit incentive for the contractor to control costs.
Davis is located in Yolo County, California, 11 mi (18 km) west of Sacramento, 70 mi (113 km) northeast of San Francisco, 385 mi (619 km) north of Los Angeles, at the intersection of Interstate 80 and State Route 113.
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