In a CPAF contract, the seller will recoup all the costs expended during the project but the award fee portion is subject to the sole discretion of the buyer. The CPAF contract is the riskiest of the cost plus contracts for the seller.

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1. In a CPAF contract, the seller will recoup all the costs expended during the project but the award fee portion is subject to the sole discretion of the buyer. The CPAF contract is the riskiest of the cost plus contracts for the seller.