If the delivery date is some months or years away and if there is substantial chance of price escalation,a supplier may feel that there is far too much risk of loss to agree to sell under a:
A)firm-fixed-price plus incentive fee (FFPIF).
B)firm-fixed-price (FFP).
C)cost-no-fee (CNF).
D)cost-plus-fixed-fee (CPFF).
E)cost-plus-incentive-fee (CPIF).

Question

Quizplus · Accepted Answer

A firm-fixed-price (FFP) contract does not allow for any adjustment to the agreed-upon price, making it risky for suppliers if there's a substantial chance of price escalation before the delivery date.

If the Delivery Date Is Some Months or Years Away