Node A6 · Acronym decoder
CPFF
Cost-Plus-Fixed-Fee
What it actually means
A cost-reimbursement contract paying allowable costs plus a fee fixed at award — the fee doesn't grow if costs grow, but the contractor also bears little cost risk. Standard for work too uncertain to price, like early development and research; the government carries the overrun risk and compensates with oversight.
Where you'll meet it
R&D and early development contracts; the counterpoint in every fixed-price-vs-cost-plus argument.