Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

Search the Dictionary of Terms

Search Results: 1-1 of 1 result for “Firm Fixed Price (FFP) Contract”

  • Firm Fixed Price (FFP) Contract

    A type of contract providing for a price that is not subject to adjustment on the basis of the contractor’s cost experience in performing the contract. FFP contracts place maximum risk and full responsibility on the contractor for all costs and resulting profit or loss. They provide maximum incentive for the contractor to control costs, perform effectively, and impose a minimum administrative burden upon the contracting parties unless changes are issued or unforeseen events occur during performance. (Nash, Schooner, & O’Brien, 1998)