What Does CPFF Stand For?

CPFF stands for COst Plus Fixed Fee

CPFF, or Cost Plus Fixed Fee, is a contract pricing arrangement commonly used in projects where the contractor is reimbursed for allowable costs incurred during the performance of the project and is paid an additional fixed fee as profit. This model provides flexibility in budgeting and allows for adjustments based on actual expenses, making it suitable for projects with uncertain costs. The fixed fee is predetermined and does not change, ensuring that both the contractor and client have a clear understanding of the financial arrangement from the outset.