In the _____ contract, if the supplier can demonstrate actual cost savings through production efficiencies or substitution of materials, the resulting savings from the initial price targets are shared between the supplier and the purchaser at a predetermined rate.
A) time and materials
B) cost plus fixed fee
C) fixed-price with incentives
D) firm fixed price
E) fixed-price with escalation

Question

Quizplus · Accepted Answer

The type of contract described is a fixed-price with incentives contract, as it includes predetermined price targets and a sharing of cost savings between the supplier and purchaser. This type of contract incentivizes the supplier to achieve cost savings through production efficiencies or material substitutions, while also allowing for potential cost savings for the purchaser.

In the _____ Contract, If the Supplier Can Demonstrate Actual