Federal activity overview — Firm-Fixed-Price
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Firm-Fixed-Price Government Contracts & Federal Records
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A firm-fixed-price contract provides a price that is not subject to any adjustment on the basis of the contractor's cost experience. It places maximum risk on the contractor and full responsibility for all costs and resulting profit or loss.
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FAR 16.202
Best suited when the requirements are well-defined, specifications are clear, and the government can establish fair and reasonable pricing. Most common contract type in federal procurement.
Advantages: Maximum incentive for cost control, minimal administrative burden. Disadvantages: Contractor bears all cost overrun risk, requires well-defined requirements upfront.
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Bureauify. (2026). Firm-Fixed-Price — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/firm-fixed-price
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