CISSP-ISSMP: Information Systems Security Management Professional

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QuestionQ106

VerifiedSystems Lifecycle Management

Rick is the project manager for the TTM project and is procuring services from vendors. He enters into a contract with a vendor that precisely defines the services to be procured, and any change to the procurement specifications increases the buyer’s costs. What type of contract is this?

Explanation

A firm-fixed-price contract establishes a fixed price for a well-defined scope of work. If the procurement specifications change, the contract must be modified and the buyer may incur additional cost; the seller otherwise bears the risk of performing the specified work for the agreed price.

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