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What is Point of Total Assumption about?

This document defines and explains the point of total assumption (PTA), a key term used in fixed price incentive contracts. The PTA is the cost point above which the seller bears all cost risk. It is calculated based on the target cost, target price, ceiling price, and cost sharing ratios defined in the contract. Exceeding the PTA is considered a risk trigger that should be monitored.

Author

rose00flower

Language

EN