Cost-Reimbursable Contracts
Payment or reimbursement is made to the seller to cover the seller’s actual direct costs (i.e., labor, materials, etc.) and indirect costs (i.e., admin. salaries, rent, utilities, etc.)
May include incentives for meeting certain objectives or penalties if those objectives are not met
Types
Cost-Plus- Fee (CPF) or Cost-Plus-Percentage (CPPC)
Cost-Plus-Fixed-Fee (CPFF)
Cost-Plus-Incentive-Fee (CPIF)