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.
Redding, officially the City of Redding, is the county seat of Shasta County, California, in the northern part of the state. It is located on the Sacramento River, which provided transportation and power in its early years. Interstate 5 passes close to the city, which has a population of 89,861. Redding is the largest city in the Shasta Cascade region, and it is the fourth-largest city in the Sacramento Valley, behind Sacramento, Elk Grove, and Roseville.