You are the project manager for the Heart of Texas casual clothing company, who is introducing a new line of clothing called Black Sheep Ranch Wear. You plan to have this new line of production outsourced by a vendor. Your legal department suggested you using a contract which reimburses the seller’s allowable costs and includes a fixed fee upon completion of the contract. What contract type will you use?
A
CPFF
explanation
The Cost Plus Fixed Fee (CPFF) contract compensates the seller for the allowable costs and includes a fixed fee for completing the project as agreed in the terms of the contract.
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