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A fixed price incentive fee (FPIF) contract is a fixed price contract combined with an incentive fee. The seller will receive a bonus for finishing early or surpassing other metrics agreed upon in advance, such as quality. Incentives can be win-win for buyer and seller. They help motivate the seller to finish faster, which is good for the buyer, and also reduce the risk that the seller will work longer or require more time to complete.

Last Update: December 3, 2024
July 27, 2017 39 Project VictorProcurement Management
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