PMI Scheduling Professional Certification (PMI-SP) Practice Exam

The type of cost reimbursable contract that includes an incentive for exceeding performance criteria is the Cost Plus Incentive contract. This contract structure not only covers allowable costs incurred by the contractor but also includes a fee that varies based on the contractor's performance. Specifically, the contractor receives a percentage of cost savings or is incentivized to reduce costs, which directly aligns with the goal of improving performance beyond established criteria.

In a Cost Plus Incentive contract, the fee adjusts according to the cost performance, thus motivating the contractor to manage costs effectively while still delivering high-quality results. This can lead to enhanced project efficiency and effectiveness, as the contractor has a financial stake in meeting or exceeding performance thresholds.

The other types of contracts mentioned do not specifically incorporate a structure that provides financial incentives for exceeding performance criteria. For instance, a Cost Plus Award Fee contract might include performance-based incentives but is often more focused on subjective evaluation of performance rather than strictly fulfilling cost reduction criteria. Cost Plus Fixed Fee offers a set fee that doesn’t change with performance, and Cost Reimbursable Basic simply covers costs without performance incentives. Therefore, the Cost Plus Incentive fundamentally addresses the need for rewarding exceptional performance.