Definition
Cost-Plus Contract reimbursing actual costs plus a fee.
Definition
Cost-Plus (cost reimbursement) contracts reimburse the contractor for allowable costs incurred plus a fee. Types include CPFF (Fixed Fee), CPIF (Incentive Fee), and CPAF (Award Fee). The government bears most cost risk. Used for uncertain requirements like R&D.
Also Known As
- Cost Reimbursement
- CPFF
- CPIF
- CPAF
Official Source
FAR Subpart 16.3
