Cost-plus-fee,cost-plus-fixed-fee,and cost-plus-incentive-fee are all types of a _____.
A)Cost-Reimbursable contract
B)Time and Materials contract
C)Fixed Price/Lump Sum contract
D)Cost-Penalty contract
E)Time-Reimbursable contract

Question

Quizplus · Accepted Answer

Cost-plus-fee, cost-plus-fixed-fee, and cost-plus-incentive-fee are all types of cost-reimbursable contracts. These types of contracts are used when the scope of work, schedule, and/or cost cannot be precisely defined at the time of contract award. The contractor is reimbursed for allowable costs incurred plus a fee, which is typically a percentage of the total cost. Cost-plus-fee contracts provide for a fixed fee, cost-plus-fixed-fee contracts provide for a set fee, and cost-plus-incentive-fee contracts provide for a fee that is adjusted based on performance incentives.

Cost-Plus-Fee,cost-Plus-Fixed-Fee,and Cost-Plus-Incentive-Fee Are All Types of a _____