A project manager must have some work done by an outside contractor. This work has a great deal of risk associated with it, and it has become very difficult to find a contractor willing to take on the job. Which of the following types of contract would offer the greatest incentive to the contractor?

1. 
   

   Cost plus percentage of cost as an award fee



2. 
   

   Cost plus fixed fee



3. 
   

   Cost plus incentive fee



4. 
   

   Firm fixed price

Answer: A