Node A6 · Acronym decoder
FFP
Firm-Fixed-Price
What it actually means
A contract type where the price is set at award and doesn't change with the contractor's actual costs — the contractor keeps underruns and eats overruns. It maximizes cost discipline when requirements are stable and well understood, and reliably produces claims, disputes, and corner-cutting when they aren't.
Where you'll meet it
Production and commercial-item contracts; the perennial "should development be fixed-price?" debate.