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You will outsource the production of this clothing line to a vendor. Your legal department has recommended you use a contract that reimburses the seller's allowable costs and builds in a bonus based on performance criteria they've outlined in their memo. Which of the following contract types will you use?
A. CPPC
B. CPIF
C. CPF
D. CPFF
Option - B CPIF, bonus based on performance criteria is nothing but Incentive fee
It is B - Cost Plus Incentive Fee appears to be the most suitable contract type in this case.
My opinion is that the right answer is:
B. CPIF
Option B. CPIF
Thanks..............................