Purchases made under cost-reimbursement contracts offer more profit potential to the government than the fixed price contracts.

Question

Quizplus · Accepted Answer

Fixed price contracts have a set price for the goods or services being purchased, while cost-reimbursement contracts allow the government to be reimbursed for the actual costs incurred plus an additional fee. Therefore, fixed price contracts offer more profit potential to the government as they do not have to pay any additional fees beyond the set price.

Purchases Made Under Cost-Reimbursement Contracts Offer More Profit Potential to the Government