The point of total assumption is the point where the contractor assumes all liability for additional costs once the target price reaches the ceiling price.

Question

Quizplus · Accepted Answer

The definition of point of total assumption (PTA) in a fixed-price incentive (FPI) contract is that it is the point at which the contractor assumes all liability for the additional costs beyond the ceiling price. Therefore, option A is correct.

The Point of Total Assumption Is the Point Where the Contractor