Which of the following statements concerning procurement contracts is true?

Question $8$Answer

a$.$

A letter of intent or a letter contract often includes a provision for fee adjustment dependent upon a negotiated formula comparing actual project cost to project target cost.

b$.$

A term contract identifies a specific end product or deliverable and the contract is complete upon delivery, customer acceptance, and complete payment.

c$.$

While utilizing a fixed price contract, the target total cost may vary, but the payment fee added to the target cost $($e$.$g$.,15$ percent$)$ to the vendor remains fixed.

d$.$

A definitive contract is a final, negotiated contract.

e$.$

A completion contract identifies a specific level of effort typically in terms of labor hours $($days$)$ for a period of time and includes resource requirements such as personnel skills, equipment, and facilities, with the contract becoming complete when the level of effort has been reached and final payment complete, regardless of technical accomplishment.