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cost plus contracts Question

Submitted by yassersaleh on Thu, 03/18/2010 - 10:09

_____________ is the riskiest of the cost plus contracts for the seller.

(A) CPPC

(B) CPFF

(C) CPAF

(D) CPIF

 

 

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None of them pose any risk

Submitted by ChandraR on Thu, 03/18/2010 - 13:15.

None of them pose any risk to the seller as he is guaranteed to get reimbursed for the costs incurred.  The only questions is: Which one offers lowest profit margin for the seller?  It is CPFF. 

Chandra

chowdary2104's picture

CPAF is the riskiest for seller among those

Submitted by chowdary2104 on Thu, 03/18/2010 - 14:06.
CPAF is the riskiest for the seller among other options. Here there is no guarantee for Award Fees. It depends on the Buyer. The seller always should be vigilant and satisfy the buyer in order to get his fee.Regards,CHOWDARY

 

Yasser, What is the

Submitted by ChandraR on Thu, 03/18/2010 - 21:58.

Yasser,

What is the correct answer and explanation?

 

Chandra

II guess it should be b

Submitted by pkukilla on Thu, 03/18/2010 - 22:52.
II guess it should be b (CPFF)

cost plus contracts Question

Submitted by yassersaleh on Thu, 03/18/2010 - 23:59.

_____________ is the riskiest of the cost plus contracts for the seller.

(A) CPPC

(B) CPFF

(C) CPAF

(D) CPIF

 

Answer

(D) CPIF  (In CPIF contracts, if the final costs are less or greater than original estimated costs, then both buyer and seller share costs from the departures based upon a prenegotiated cost sharing formula) .

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