In a Fixed Price Incentive Fee Contract (FPIF)
A) the customer can pay a lower price if the contractor can reduce costs
B) the incentive can be determined by the cost sharing ratio
C) the contractor can earn a larger profit by reducing costs
D) is not really a fixed-price contract
E) the price is periodically adjusted to allow for changes in materials, labor, or overhead costs

Question

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The Answer of In a Fixed Price Incentive Fee Contract (FPIF)
A) the customer can pay a lower price if the contractor can reduce costs
B) the incentive can be determined by the cost sharing ratio
C) the contractor can earn a larger profit by reducing costs
D) is not really a fixed-price contract
E) the price is periodically adjusted to allow for changes in materials, labor, or overhead costs