If the delivery date is some months or years away and if there is substantial chance of price escalation,a supplier may feel that there is far too much risk of loss to agree to sell under a:

A) firm-fixed-price plus incentive fee (FFPIF) .
B) firm-fixed-price (FFP) .
C) cost-no-fee (CNF) .
D) cost-plus-fixed-fee (CPFF) .
E) cost-plus-incentive-fee (CPIF) .

Price Escalation

An increase in the price of products or services over time, often due to factors such as inflation or increased costs of materials.

Firm-Fixed-Price

A type of contract where the price agreed upon is not subject to any adjustments based on the cost experience of the supplier or service provider.

Substantial Chance

A significant opportunity or probability of occurrences that can have considerable effects or outcomes.