A _____ is a contract that reimburses the contractor for costs but the profit is a fixed amount.
A) cost reimbursable contract with a percentage fee
B) fixed price with an incentive fee
C) fixed total cost
D) fixed price with price adjustment
E) cost reimbursable contract with a fixed fee

Question

Quizplus · Accepted Answer

A cost reimbursable contract with a fixed fee reimburses the contractor for their costs incurred, but the profit is a fixed amount agreed upon at the start of the contract. This incentivizes the contractor to keep costs low while still ensuring they make a profit.

A _____ Is a Contract That Reimburses the Contractor for Costs