Which of the following contract types is described in the statement below? "The seller is reimbursed for all allowable costs for performing the contract work, and receives a fixed payment calculated a

In a CPFF contract, the buyer reimburses the seller for all allowable, allocable costs incurred during performance, and then pays an additional fixed fee that was pre-negotiated as a percentage of the originally estimated project costs. Because the fee is fixed and does not change with actual costs, the seller has limited incentive to inflate costs beyond what is allowable, but the buyer absorbs all cost overrun risk.

Cost Plus Incentive Fee (CPIF) contracts also reimburse costs but the fee varies based on the seller meeting or exceeding pre-agreed performance targets, not a fixed percentage of initial estimates.

Fixed Price Incentive Fee (FPIF) contracts set a ceiling price and adjust profit based on performance, but the buyer does not reimburse all costs - the seller bears cost overrun risk above the ceiling.

Firm Fixed Price (FFP) contracts set a single total price for the work regardless of actual costs, placing all cost risk on the seller and involving no cost reimbursement mechanism.