USFCR Blog

You've been winning commercial contracts for years. Partnerships form naturally, project structures shift as work evolves, and teams come together based on whoever's available and capable. It works.

Then you bid your first federal contract using the same approach, and everything breaks.

The government rejected your prime contractor bid. Not because your solution wasn't good. Not because your pricing was off. Because you couldn't prove you'd done this exact work before, at this exact scale, under these exact circumstances.

Government contracts come in various forms, each designed to fit specific needs. Whether you're new to federal contracting or an experienced supplier, knowing the differences between contract types is crucial for success in this complex industry. In this guide, we break down the most common types of government contracts and how they might impact your business.

Firm-Fixed-Price Contracts (Learn more) 

Firm-fixed-price contracts are the most widely used in government procurement. In this type of contract, the contractor agrees to deliver goods or services for a set price, regardless of actual costs. It’s often used when the project scope is well-defined and the risk of cost overruns is minimal.

Why It's Used: Fixed-price contracts offer predictability for both parties, making them ideal for projects with clear deliverables.