What are the statutory fee limits for cost-plus-fixed-fee contracts?

• A. For experimental, developmental, or research work, 15 percent; for architect-engineer services, 6 percent; for other cost-plus-fixed-fee contracts, 10 percent
• B. 15 percent for all cost-plus-fixed-fee contracts
• C. 6 percent for all cost-plus-fixed-fee contracts
• D. No statutory fee limits apply

Answer: (D)

The key idea is that there are no federal statutory caps that apply universally to cost-plus-fixed-fee contracts. In these agreements, the contractor is reimbursed allowable costs plus a fixed fee, and that fixed fee is negotiated rather than set by statute. While historical practice referenced ceilings (for example, certain percentages for specific types of work), those ceilings are not current statutory limits binding all CPFF contracts. In modern practice, the fixed fee is determined through negotiation and should be reasonable given the work’s complexity, risk, and market conditions, with any agency-specific guidance or contract terms applying rather than a statutory percent. So there isn’t a statutory fee limit that applies across the board.