A project requires a component with well-understood specifications. Performance
targets are established at the outset, and the final contract price is determined after
completion of all work based on the seller’s performance. The most appropriate
agreement with the supplier is:

A.
Cost Plus Incentive Fee (CPIF).

B.
Fixed Price Incentive Fee (FPIF).

C.
Cost Plus Award Fee (CPAF).

D.
Fixed Price with Economic Price Adjustment (FP-EPA).