Contracts 101

Posted On febrero 13, 2026

Contracts 101: Federal Contract Types Made Simple

If you work with government contracts (or want to), understanding FFP vs T&M vs Cost-Plus is non-negotiable. This PDF breaks down how each contract type works, what “good faith effort” really means, how funding ceilings and deliverables affect cash flow, and where contractors get hurt (or win) on risk.

What you’ll learn

  • What makes a contract enforceable: offer, acceptance, consideration
  • Definite vs. Indefinite / IDIQ: when the award authorizes work—and when only a task/order does
  • Solicitations: RFI vs RFP vs RFQ + where unsolicited proposals show up
  • Roles & responsibilities: what the Contracting Officer can commit vs what the COR/COTR can (and can’t) change
  • Changing contracts: what makes a modification valid (and why unsigned mods don’t count)
  • Standard federal contract structure: what’s typically in Sections A–K (and how L & M drive proposal strategy)
  • SOW vs PWS (and SOO): how requirements and outcomes are defined—and how acceptance is measured
  • Contract types and profit/risk drivers:
    • Cost Reimbursement: CPFF, CPAF, CPIF; ceilings, audits, fee mechanics
    • T&M / Labor Hour: hourly rates, labor category compliance, ODC reimbursement
    • Firm Fixed Price: deliverable-tied payments, specs clarity, highest risk/highest upside

Why this matters (quickly)

Contract type selection changes everything: cash flow, compliance burden, profitability mechanics, and execution risk. This guide gives you the mental model to read an opportunity, ask the right questions, and avoid committing to scope you don’t fully understand.

Who this is for

  • Government contractors (new or growing)
  • Project/Program Managers, Contract Managers, and Contract Administrators
  • Ops & Finance leads who need to control delivery, burn, invoicing, and margin

What’s included

  • 1 PDF (31 pages/slides)
  • Clean definitions, comparisons, and risk notes you can reference before bidding or signing

Note: Educational content only; not legal advice.

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