A project manager and buyer are evaluating request for proposal (RFP) responses for critical material necessary to complete a project. Cost is the most important supplier selection criteria. The lowest-cost supplier discloses that its capacity will not be exceeded
after signing the contract, but it would approach 100 percent.
What type of contract should the project manager use to mitigate the risk of material delivery delays due to supplier capacity overload?


A. Cost plus award fee (CPAF)
B. Time and material (T&M)
C. Fixed price incentive fee (FPIF)
D. Cost plus incentive fee (CPIF)