All glossary terms
Contract Types & Pricing

Firm-Fixed-Price

Contract providing a fixed price regardless of actual contractor costs. Greater risk on the contractor.

Related terms

Full-Time Equivalent
Measurement unit representing one employee working full-time for one year.
General and Administrative
Indirect expenses for overall business management, allocated across all contracts.
Indefinite Delivery Indefinite Quantity
Contract vehicle providing indefinite quantity of supplies or services during a fixed period.
Independent Government Cost Estimate
Government's internal projection of what a procurement should cost.
Indirect Cost
Costs not directly accountable to a contract: fringe, overhead, G&A, B&P, IR&D.
Labor Category
The classification of positions priced and bid on a contract (e.g., Engineering Technician III).
Multiple Award Task Order Proposal
An IDIQ contract with more than one winner. Winning the vehicle doesn't guarantee work.
Time and Materials
Contract based on direct labor hours at fixed rates plus materials at cost.