Cost-Plus-Fixed Fee (CPFF) Contract

1 Definition

Type of contract in which the buyer reimburses the contractor for the contractor's allowable costs ( as defined by the contract) plus a fixed amount of profit (fee). The fixed fee does not vary with actual cost but may be adjusted if changes occur in the work to be performed under the contract. In cost type contracts, the performance risk is borne mostly by the buyer, not the seller.
defined by PCoE Oregon .Gov