____ contracts involve a fixed total price for a well-defined product or service.
A)CPFF
B)Lump sum
C)Cost-reimbursable
D)Time and material

Question

Quizplus · Accepted Answer

Lump sum contracts involve a fixed total price for a well-defined product or service. This means that once the contract is signed, the vendor is responsible for delivering the product or service within the agreed-upon specifications and for the agreed-upon price. If the cost of delivering the product or service turns out to be more than the vendor anticipated, the vendor bears the additional costs. Lump sum contracts are often used for projects with clear deliverables and a defined scope of work.

____ Contracts Involve a Fixed Total Price for a Well-Defined