In the ____ contract,if a supplier can demonstrate actual cost savings through production efficiencies or substitution of materials,the resulting savings from the initial price targets are shared between the supplier and the buyer at a predetermined rate.
A) time and materials
B) cost plus fixed fee
C) fixed-price with incentives
D) firm fixed price
E) fixed-price with escalation

Question

Quizplus · Accepted Answer

The description of the contract matches the fixed-price with incentives contract, where the supplier and the buyer agree on predetermined price targets but also agree to share any cost savings resulting from production efficiencies or substitution of materials. This incentivizes the supplier to find ways to reduce costs and share the benefits with the buyer.

In the ____ Contract,if a Supplier Can Demonstrate Actual Cost