In a _____, the service provider is allowed an adjustment for economic changes that affect costs such as changes in currency values or inflation.
A) cost reimbursable contract with a percentage fee
B) fixed price with price adjustment contract
C) fixed price with incentive fee contract
D) firm-fixed-price contract
E) cost reimbursable contract with a fixed fee

Question

Quizplus · Accepted Answer

A fixed price with price adjustment contract allows for adjustments to the agreed-upon price based on economic changes, such as inflation or currency value fluctuations. This type of contract provides some protection for the service provider against unforeseen economic factors that could impact their costs.

In a _____, the Service Provider Is Allowed an Adjustment