Difference between a Cost Plus Fixed Fee and Cost plus Incentive fee - clarification
In what type of contract is the seller reimbursed for all allowable cost for performing the contract work and recieves a predetermined fee based upon achieving certain performance objectives:
A: Cost plus fixed fee
B: Cost plus incentive fee
The confusion from my part is that both are predetermined? Or is the clear distinction the fact that the fee in a cost plus fixed fee is mandatory (Legally binding) and a cost plus incentive fee is based on discretion?
