What are the four types of contracts?

In federal acquisition, four common contract types are firm-fixed-price (FFP), cost-reimbursement, time-and-materials (T&M), and indefinite-delivery/indefinite-quantity (IDIQ) contracts. FFP pays a set price for defined outcomes, while cost-reimbursement covers allowable costs plus fee when work is less predictable. T&M pays for labor hours and materials at agreed rates, and IDIQ vehicles provide a flexible structure for recurring orders over time.

Each contract type changes risk, pricing approach, and how you manage delivery. GovCon in a Box gives small businesses practical insight into which types dominate their target agencies and NAICS codes. Our capture pipeline and RGA tool help you quickly assess whether the contract type, ceiling, and task structure fit your capacity and margin goals before you commit scarce bid resources.