The PMI GPT says this: 🔹 COST-REIMBURSABLE CONTRACTS These are contracts where the buyer reimburses the seller for actual costs, and then adds an additional fee. The two you mentioned fall into this category: ✅ 1. Cost Plus Fixed Fee (CPFF) - What it is:The seller is reimbursed for all allowable costs, plus a fixed fee. - Fixed fee:The fee is agreed upon upfront and does not change, regardless of project performance. - Key point:The seller’s profit is fixed — there’s no incentive to control costs or improve performance. Example: You hire a contractor to build a prototype for $100,000 in costs, plus a fixed $10,000 fee. Whether the costs end up at $90K or $110K, they still get $10K as their fee. ✅ 2. Cost Plus Award Fee (CPAF) - What it is:The seller is reimbursed for all allowable costs, plus an award fee based on performance. - Award fee:This is subjective and is awarded based on how well the seller performs. - Key point:The seller has incentive to perform well to receive a higher award. Example: Same as above, but the $10,000 is not fixed. Instead, the buyer can award some or all of it depending on how well the seller met quality, schedule, or innovation targets. 🔹 FIXED-PRICE CONTRACTS These are contracts where the price is set, regardless of the seller’s actual costs. ✅ 1. Firm Fixed Price (FFP) - What it is:The price is set and not adjustable — the seller must deliver the project for that price. - Risk:All the cost risk is on the seller. If costs go up, the seller eats it. - Key point:The buyer pays a firm, agreed amount, regardless of performance or cost. Example: You agree to pay $500,000 to build a building. Even if the seller’s cost goes up to $550,000, they must absorb the $50,000 loss. ✅ 2. Fixed Price (FP) - What it is:This is a generic term. It simply means the price is fixed, but it may include variants like: Firm Fixed Price (FFP) Fixed Price Incentive Fee (FPIF) Fixed Price with Economic Price Adjustment (FPEPA) - - Key point:“Fixed Price” is the category, while FFP is the most strict form — a subtype with zero adjustments.

@Awawu Mohammed Thank you!! Slowly but surely getting closer 🚀”

@Mireya Semelas hell yeah, girl! LFG!! congrats!!

I would stick to Andrew’s 100%.

I believe work packages are part of traditional like you mentioned, and backlog is agile so the question to answer doesn’t make sense to me either. But also you never cancel a project. So personally I wouldn’t pick A. But I think Andrew mentioned that a lot of the questions in study hall can be worded wrong or have wrong answers. He doesn’t like it. That might just be a bad question.