Firm Fixed Price (FFP) contracts are a key element within the Adaptive Acquisition Framework, providing a predetermined price for goods or services that does not fluctuate based on the contractor’s costs. This contract type is advantageous for managing budget predictability and encouraging efficiency, as the contractor absorbs the risk of any cost overruns. FFP contracts are especially effective for projects with clearly defined requirements and minimal likelihood of changes. The Adaptive Acquisition Framework leverages FFP contracts to enhance procurement flexibility and cost control. For a comprehensive overview of FFP contracts within this framework, consult detailed acquisition guidelines and resources.
