MATOC

Federal Procurement Contract Types: FFP, T&M, IDIQ, and Choosing the Right Vehicle

Federal contracts come in several structural types — Firm Fixed Price (FFP), Cost Plus, Time and Materials (T&M), Indefinite Delivery Indefinite Quantity (IDIQ), and various hybrids. Each has different risk allocation, administrative requirements, and suitability for different work types. Contractors pursuing federal work need to understand the contract type structure before bidding; the structure affects everything from cost accounting to claim strategy.