5.1 - Cost Reimbursement or Fixed Price?

Under a cost-reimbursement award, the sponsor reimburses the university for the actual costs of the sponsored program, up to the amount originally awarded.

Under a fixed price award, the sponsor pays a fixed amount regardless of whether the actual costs of the activities involved turn out to be higher or lower. If the project ends up costing more than originally estimated, the university must cover the extra expense.