You have been hired as a contract project manager for Grapevine Vineyards. Grapevine wants you to design an Internet wine club for its customers. Customers must register before being allowed to order wine over the Internet so that legal age can be established. You know this project will require new hardware and an update to some existing infrastructure. You will have to hire an expert to help with the infrastructure assessment and upgrades. You also know that the module to verify registration must be written and tested using data from Grapevine’s existing database. This new module cannot be tested until the data from the existing system is loaded. You are going to hire a vendor to perform the programming and testing tasks for this module to help speed up the project schedule. The vendor will be reimbursed for all their costs and you want to use a contract type that will allow you to give the vendor a little something extra if you are satisfied with the work they do. You know all of the following apply in this situation except for which one? Choose the least correct response.

A. Contract type is determined by the risk shared between the buyer and seller.

B. You’ll use a CPAF contract for the programming vendor.

C. Fixed-price contracts can include incentives for meeting or exceeding performance criteria.

D. Each procurement item needs a SOW.