Federal activity overview — Cost-Plus-Fixed-Fee CLIN
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Cost-Plus-Fixed-Fee CLIN Government Contracts & Federal Records
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A contract line item that reimburses the contractor for all allowable costs incurred in performance plus a fixed fee (profit) negotiated at contract award. The fee does not vary with actual costs, providing some incentive for cost control while protecting the contractor from the uncertainty of undefined or research-oriented work.
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Ask about CPFFGovernment reimburses all allowable, allocable, and reasonable costs per FAR Part 31 cost principles, plus a fixed fee expressed as a dollar amount (not a percentage of actual costs). Fee is typically 6-10% of estimated costs. The total estimated cost plus fee establishes the funding ceiling.
Research and development efforts, studies, and services where the scope of work cannot be sufficiently defined to permit a fixed-price arrangement. Common in defense R&D, scientific research, and complex system engineering where cost uncertainty is high.
FAR 16.306 — Cost-Plus-Fixed-Fee Contracts
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Bureauify. (2026). Cost-Plus-Fixed-Fee CLIN — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/cpff-clin
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