What is the difference between a fixed-price (FFP) and a cost-plus-fixed-fee (CPFF) contract?
A fixed price contract is a contract based on the awardee performing certain milestones or deliverables and being a paid amount for each milestone or deliverable. Fixed price contracts are not tied to cost, but rather action as required under the contract. Therefore, all cost justification occurs during the proposal/awarding phase of your federal award. Cost-plus-fixed-fee contracts are reimbursable types of contracts where your company is reimbursed for direct costs, plus an indirect cost percentage reimbursement depending on your indirect rate structure, plus a profit percentage (also known as fee).
