CISSP – Information Systems Security Management Professional (ISSMP) — Question 48

Which of the following contract types is described in the statement below? "This contract type provides no incentive for the contractor to control costs and hence is rarely utilized."

Answer options

• A. Cost Plus Fixed Fee
• B. Cost Plus Percentage of Cost
• C. Cost Plus Incentive Fee
• D. Cost Plus Award Fee

Correct answer: B

Explanation

The correct answer is B, Cost Plus Percentage of Cost, as this type of contract allows the contractor to charge a percentage on the total costs, providing no incentive to minimize expenses. In contrast, the other options involve varying levels of incentives or fixed fees that encourage cost control.