During the PMP exam, is possible to encounter questions related to Point of Total Assumptions (PTA). I think the PTA concept needs an additional introduction, due to its unpopularity in the practical usage. PTA is used strictly connected with Fixed Price Incentive Fee (FPIF) contracts. These types of contracts motivate the seller to control the cost, in order to maintain his profit, by sharing the risks between buyers and sellers, based on a dynamic formula.  However, FPIF contracts are not so “fixed” as the name implies. The only “fixed” part of these types of contracts is represented by the Ceiling Price, the highest price the buyer will pay in the worst-case scenario.

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