Contract


1. A R&D project manager wants to go for the contracting, he picks
the preferred seller who is working with his organization for long
time. He want to have a good relation with seller and get his work done
as he need. What type of contract he will sign-up with the seller.

a. Fixed price plus incentive contracts

b. Cost plus fixed fee (CPFF)

c. Cost plus incentive fee (CPIF)

d. Cost plus Award Fee (CPAF)

Since its research project it should be CPFF

In R&D projects the scope and deliverables changes frequentely, will the CPFF motivate the seller?

Cost plus contracts are not that complicated. This is one of the things that a lot of people has have been interested with. - Marla Ahlgrimm