Procurement question

Submitted by webr on Sun, 04/29/2012 - 05:37

 I read this question somewhere recently.. but could not find the source now., can some one help on the below question.

Company A found unique medical product , they wanted to contract the work to a vendor. To surprise , they found only one vendor is availale for that kind of work for that unique skill. What kind of contract the Company A should estalish.

 

1. FP

2. CPFF

3. CPIF

4.CPAF

5. CPF

6.CPPC

7. T&M

Forums: 
PMP / CAPM exam Question bank
  • Log in to post comments
  • 597 reads

sspawar

Sun, 04/29/2012 - 15:31

1. FP - fixed price or firmed fixed price

2. CPFF - cost plus fixed fee

3. CPIF - cost plus incentive fee

4.CPAF - cost plus award fee

5. CPF- I think it 's a vague term

6.CPPC- cost plus percentage of cost

7. T&M- time and material

 

Buyers must be benifitted in 1st one.

Since from question it is clear that Buyer have no idea what will be the cost of that work, becuase it is new one.

vendor is only one he may impose any amount as a cost.

buyer has to fix a dead line (negotiable cost/value) for that part of work to keep in mind its total impact on his benefit.

rest of option are having more risk of loosing money for buyer only.

Regards