Answer: the agreement is to reimburse the costs plus a fixed amount as fee
Explanation: A cost-plus-fixed-fee contract is an expense-reimbursement agreement which allows for a calculated price to be charged to the contractor at the start of the project.
The fixed price doesn't really differ with real costs, but can be changed as a response to changes in the job under the agreement to be done.
In other words, The cost-plus fixed fee arrangement is a special sort of contract in which the contractor is charged for the usual project costs, plus an extra fixed fee for their work. This enables the contractor to earn a profit on the job and promote allocation efficiency in different industries.
