CPFF

Law & Legal abbreviation · Contract

CPFF
Stands forCost-plus-fixed-fee
CategoriesLaw & Legal

CPFF stands for Cost-plus-fixed-fee, a contract abbreviation also used in business.

Cost-reimbursement contract type in which the government pays the contractor's allowable costs plus a fee fixed at the outset, which does not change with actual costs. It is used for research and development or other work too uncertain to price firmly.

Example: The research task order was issued CPFF because no one could estimate the testing hours.

Usage notes

Fee ceilings set by statute and FAR 15.404-4 are generally 10 percent of estimated cost, 15 percent for experimental, developmental or research work and 6 percent for architect-engineer services. Contractors need an adequate accounting system to receive cost-reimbursement contracts.

More contract abbreviations

  • BATNA – Best alternative to a negotiated agreement
  • CA – Confidentiality agreement
  • CDA – Confidential disclosure agreement
  • CIIAA – Confidential information and invention assignment agreement
  • CISG – United Nations Convention on Contracts for the International Sale of…
  • CLA – Contributor license agreement
  • CRADA – Cooperative research and development agreement
  • CTA – Clinical trial agreement
  • DFARS – Defense Federal Acquisition Regulation Supplement
  • DPA – Data processing agreement
  • EPC – Engineering, procurement and construction
  • EULA – End-user license agreement

See all 57 contract abbreviations →

This entry is for general education and is not legal advice. Abbreviation use varies between institutions; always confirm in context.