The incentive for a cost- plus- award- fee contract are less specific than a cost- plus- incentive- fee contract.

Question

Quizplus · Accepted Answer

In a cost-plus-award-fee contract, the award fee is not tied to specific performance criteria, but rather is at the discretion of the government based on overall performance. In contrast, a cost-plus-incentive-fee contract includes specific performance targets that must be met in order for the contractor to earn the incentive fee. Therefore, the incentives in a cost-plus-incentive-fee contract are more specific than in a cost-plus-award-fee contract.

The Incentive for a Cost- Plus- Award- Fee Contract Are