Node A6 · Acronym decoder
CPIF
Cost-Plus-Incentive-Fee
What it actually means
A cost-reimbursement contract where the fee moves with cost performance by an agreed share ratio — underrun the target cost and the fee grows, overrun and it shrinks, between a floor and ceiling. It puts objective money on cost discipline while the government still carries most of the risk, sitting between CPFF's fixed fee and FFP's full risk transfer.
Where you'll meet it
Development contracts mature enough to set a credible target cost.