Firm-Fixed-Price Contract
FFP
A contract paying a set price regardless of the contractor's actual costs, placing cost risk on the contractor.
A Firm-Fixed-Price (FFP) contract pays a set price that is not adjusted based on the contractor's actual cost of performance. The contractor bears full cost risk and keeps the savings if it performs efficiently — and absorbs the loss if costs run over. FFP is the government's preferred type for well-defined supplies and services and does not require a government-approved accounting system, making it the most common and accessible type for SDVOSBs.
Primary Sources
Last updated Update cadence: Quarterly, plus on regulatory changes
Change log (1)
- LaunchedPublished the glossary covering 48 federal contracting terms with DefinedTerm structured data, primary-source citations, and cross-links into the NAICS, PSC, agency, vehicle, and FAQ pages.