PMP Exam Set C – Q22

A seller entered into contract with a buyer. At the end of the project, the seller was reimbursed for the cost of the project, but received a very low fee based on certain subjective criteria that had been laid down in the contract. What type of contract is this likely to be?

A. Cost Plus Fixed Fee (CPFF) contract
B. Fixed Price Incentive Fee (FPIF) contract
C. Cost Plus Incentive Fee (CPIF) contract
D. Cost Plus Award Fee (CPAF) contract

D. Cost Plus Award Fee (CPAF) contract