For procurement of conventional products like hammers and shovels,the most appropriate type of contract is ______.

Question

Quizplus · Accepted Answer

For conventional products like hammers and shovels, where the scope of work is well-defined and the pricing is clear, a fixed fee contract is the most appropriate type of contract. This contract type provides certainty for the buyer regarding the total cost of the procurement, as the price is set upfront and does not depend on the expenses of the supplier. Additionally, it incentivizes the supplier to complete the work within the agreed-upon timeframe and budget. Cost plus fixed fee, cost plus percentage fee, and cost plus incentive fee contracts are generally used for more complex and uncertain projects where the scope of work and pricing are not well-defined.

For Procurement of Conventional Products Like Hammers and Shovels,the Most