Which of these is a hybrid contract?

The correct answer is D. Time and material (T&M). A Time and Material (T&M) contract is classified as a hybrid contract because it combines features of both contract types: it has fixed-price elements (fixed unit labor rates, fixed material pricing) and cost-reimbursable elements (the total cost varies because hours worked and m

Predictive, Plan-Based Methodologies

Question

Which of these is a hybrid contract?

Options

ACost plus award fee (CPAF)
BFirm fixed price (FFP)
CFixed price incentive fee (FPIF)
DTime and material (T&M)

How the community answered

(17 responses)

B
6% (1)
D
94% (16)

Explanation

A Time and Material (T&M) contract is classified as a hybrid contract because it combines features of both contract types: it has fixed-price elements (fixed unit labor rates, fixed material pricing) and cost-reimbursable elements (the total cost varies because hours worked and materials consumed are variable). This makes it neither purely fixed-price nor purely cost-reimbursable. In contrast, Firm Fixed Price (FFP) is purely fixed-price, Cost Plus Award Fee (CPAF) is purely cost-reimbursable, and Fixed Price Incentive Fee (FPIF) is a fixed-price contract variant - not a hybrid.

Topics

#Contract types#Time and Material (T&M)#Hybrid contracts#Procurement management

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