Federal activity overview — Cost-Plus-Fixed-Fee
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Cost-Plus-Fixed-Fee Government Contracts & Federal Records
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Provides for payment of allowable incurred costs plus a fixed fee that does not vary with actual costs. The fee is established at inception and remains constant unless the scope of work changes.
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Ask about CPFFCost-Reimbursement
FAR 16.306
Appropriate for research and development when the level of effort required is unknown. Used when a cost-reimbursement contract is necessary and the contractor should not bear the risk of cost overruns.
Advantages: Low contractor risk, fee is guaranteed regardless of cost performance. Disadvantages: Minimal incentive for cost control, requires government cost oversight and auditing.
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Bureauify. (2026). Cost-Plus-Fixed-Fee — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/cost-plus-fixed-fee
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