One Problem with a Cost Plus Incentive Fee Procurement Contract

question 39

Multiple Choice

One problem with a cost plus incentive fee procurement contract is _____.

• A)it requires clearly defined output that is not really malleable
• B)it almost always leads to higher costs
• C)firms have a strong incentive to invest in the most expensive technology to complete the project
• D)firms have an incentive to misrepresent final costs

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Definitions:

Azygos Vein

A major vein located in the thoracic cavity that drains blood from the thorax to the superior vena cava.

Posterior Intercostal

Referring to the muscles and arteries located between the ribs at the back of the chest, which are involved in the mechanical aspect of breathing.

Internal Iliac Artery

An artery that supplies blood to the pelvis, gluteal region, and reproductive organs.

Pelvic Area

The lower part of the torso, located between the abdomen and the thighs, encompassing the pelvis bones and reproductive organs.