What is Forward Commitment Procurement (FCP)?

Forward commitment procurement (FCP) is a procurement tool aimed at procuring innovative goods and services in the future and managing the associated risk. It is widely used in the public sector, where objectives such as developing a vaccine for a disease are not met due to a lack of adequate resources or funding.

The FCP methodology warms the public and enterprises to innovative investments by combining progressive thinking and industry best practices. It breaks the demand barriers to innovative products and services so those goods may cost-effectively be brought to the market.


Related Terms

What is Flip?What is Forward Auctions?What is Fourth-Party Logistics (4PL)?