PMP Exam Set G – Q94

A buyer and seller are looking at getting into a long-term relationship spanning over 10 years. Both parties would like to be protected from the unstable financial conditions of the country that are beyond their control. What type of contract is appropriate for such a relationship?

A. Fixed Price Incentive Fee (FPIF)
B. Firm Fixed Price (FPP)
C. Time & Material (T&M)
D. Fixed Price with Economic Price Adjustment Contract (FP-EPA)

D. Fixed Price with Economic Price Adjustment Contract (FP-EPA)