In which of the following contract types, the seller is reimbursed for all allowable costs for
performing the contract work and receives a fixed fee payment which is calculated as a percentage
of the initial estimated project costs?

A.
Firm Fixed Price Contracts

B.
Cost Plus Fixed Fee Contracts

C.
Fixed Price Incentive Fee Contracts

D.
Cost Plus Incentive Fee Contracts

Explanation:
The Cost Plus Fixed Fee Contract (CPFF) is a type of contract where seller receives a fixed fee
payment calculated as a percentage of the initial estimated project costs. Fee is paid only for the
complete work and it does not change due to the performance of the seller. In the CPFF
contract, the seller is reimbursed for all allowable costs for performing the contract work.
Answer options D, A, and C are incorrect. The description does not match with these types of
contracts.
A Guide to the Project Management Body of Knowledge, (PMBOK Guide), Fourth Edition,
ISBN.9781933890517, Section 12.1.2.3.