CPPCF

Cost Plus Percentage of Cost Fee is a contract type where the contractor's fee is calculated as a percentage of allowable costs incurred. CPPCF contracts are prohibited for federal government use because they provide incentive to increase costs rather than control them.

Understanding the CPPCF prohibition helps contractors avoid proposing prohibited arrangements and recognize compliant cost-reimbursement alternatives. Legitimate cost-plus arrangements include CPFF, CPIF, and CPAF where fees are fixed or tied to performance rather than cost magnitude. CPPCF restrictions protect government interests in cost control.