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  • Question

    My understanding is that a CPIF contract becomes a CPFF contract at the time the total actual cost reaches the point associated with minimum fee and, from this point forward, the gov't pays the total cost bill. Is it possible or feasible to have a total cost cap identified in a separate clause or does this defeat the purpose of the CPIF in the first place?


    Answer

     It defeats the purpose of the CPIF since hitting the cost cap effectively changes the contract to CPFF.

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