Question

You are on an Integrated Product Team (IPT) working on putting together a Request for Proposal (RFP) for a small, highly precedented software system. The system is comprised entirely of Commercial-Off-the-Shelf (COTS) products that run entirely on commercial hardware. For this type of system, an appropriate choice of contract type might be a:

Answer 1

Answer: Firm-Fixed-Price contract

Step-by-step explanation:

A Firm-Fixed-Price contract offers a price that is not subjected to any adjustments on the basis of the contractor's cost experience in performing the contract. The contractor is placed and faced with full responsibility and a high risk for all costs and resulting profit or loss. It requires the contractor to provide a specified level-of-effort over a stated period of work that can be stated only in general terms, and the Government pays the contractor a fixed-dollar amount.