Cost Plus Fixed Fee
A contract type where you are reimbursed for allowable costs plus a fixed profit fee. Used for R&D and uncertain work.
(Cost Plus Fixed Fee) is a contract type concept federal contractors and grant writers run into across solicitations, regulations, and award filings
CPFF describes a specific contract structure that the federal government uses. The contract type controls risk allocation, payment timing, reporting cadence, and how performance is measured — all of which affect whether the work is profitable and whether it fits a contractor's capability profile. Knowing whether a solicitation is structured as a CPFF versus another vehicle is one of the first signals of how the government expects the work to be executed and what kind of contractor they're trying to attract. Misreading the contract type can mean either over-pricing risk you don't actually carry or under-pricing risk you do. The related terms above name the adjacent vehicles CPFF most commonly competes with or rolls up under.
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