A project requires a component with well-understood specifications. Performance targets are established at the outset, and the final contract price is determined after completion of all work based on the seller’s performance.

A project requires a component with well-understood specifications. Performance targets are established at the outset, and the final contract price is determined after completion of all work based on the seller’s performance.

The most appropriate agreement with the supplier is:
A .  Cost Plus Incentive Fee (CPIF).
B .  Fixed Price Incentive Fee (FPIF).
C .  Cost Plus Award Fee (CPAF).
D .  Fixed Price with Economic Price Adjustment (FP-EPA).

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Answer: B