Foster Aircraft Co.has agreed with the U.S.government to rapidly produce a new fighter aircraft in exchange for specified production expenses and a 10% profit.This is a requirements contract.

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This is a cost-plus-fixed-fee contract, where the contractor (Foster Aircraft Co.) is reimbursed for all production expenses and receives a fixed fee (in this case, 10% profit) on top. A requirements contract would involve the U.S. government agreeing to buy all its needs for a particular good or service from Foster Aircraft Co.