Project Management Professional (PMP) Exam Practice – Question0827

The project manager for a medium-sized project expects materials from a vendor to arrive in time to deliver an upcoming milestone. However, the project manager learns there will be a three-week delay, which will directly impact the schedule. The type of contract
used with the vendor was firm fixed price (FFP).

What type of contract should the project manager use in the future to mitigate vendor delays?


A.
Fixed price incentive fee (FPIF)
B. Cost plus award fee (CPAF)
C. Time and material (T&M)
D. Fixed price with economic price adjustment (FP-EPA)

Correct Answer: A