A major drawback to cost plus fixed fee contracts when compared to fixed fee contracts is _____.

Question

Quizplus · Accepted Answer

Cost plus fixed fee contracts require the government or the contracting entity to monitor the firm's costs closely to ensure that the costs claimed are legitimate and necessary, as the contract reimburses these costs plus a fixed fee. This monitoring is necessary to prevent overcharging and inefficiency, which is not as critical in fixed fee contracts where the total cost is agreed upon in advance.

A Major Drawback to Cost Plus Fixed Fee Contracts When