medium · Project Management Professional predictive

While managing a predictive project at Coveport Logistics, the PM notices the CPI is 0.82 and the SPI is 0.95. The main vendor is on an FPIF contract and is currently at 90% of the PTA cost level.

What is the most likely outcome for the contract fee?

  1. The final fee will increase because the vendor is doing more work than planned.
  2. The final fee will remain at the target level as long as they do not exceed the ceiling price, while documenting the decision in the issue log.
  3. The final fee will be significantly lower than the target fee because of the poor cost performance.
  4. The vendor will receive an incentive bonus for nearing the PTA threshold successfully.

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