Winning a government contract can be a major opportunity for small businesses, but understanding contract types is key to success. Firm-Fixed-Price (FFP) contracts are one of the most common government contract types, offering a set payment amount that doesn’t change, no matter the contractor’s actual costs.
Understanding terminations for convenience: when the federal government or a prime contractor issues a Termination for Convenience (T4C), it means they are ending a contract not due to contractor fault but for strategic, budgetary, or policy reasons. This can disrupt your business, but it does not mean you won’t be compensated. Understanding your rights and the required steps can help ensure you recover the costs of work performed and avoid financial hardship.
