Hi guys, quick Procurement question I need help on.
Question: Of the following contract types, which exposes the seller to the highest risk?
I chose FFP, but the answer apparently is D (CPAF). CPAF is Cost plus award fee. How can this be the riskiest to the seller when all costs are being reimbursed by the buyer? (they may not get a fee if they don't perform, but their costs also won't explode?)