What does the acronym FFP stand for?

What does the acronym FFP stand for?

• A. Fixed-Price-Firm
• B. Firm-Fixed-Price
• C. Fixed-Follow-Price
• D. Firm-Fixed-Funding

Answer: (B)

FFP stands for Firm-Fixed-Price, a contract type where the price is fixed and does not change with costs or scope changes, as long as the work remains within the agreed requirements. The word “Firm” indicates the price is set and not subject to adjustment, and “Fixed” reinforces that the price stays the same regardless of costs the seller incurs. This arrangement gives price certainty to the buyer while placing cost risk on the seller. In procurement terminology, Firm-Fixed-Price is the standard name, so the other phrasings aren’t used in practice.

FFP stands for Firm-Fixed-Price, a contract type where the price is fixed and does not change with costs or scope changes, as long as the work remains within the agreed requirements. The word “Firm” indicates the price is set and not subject to adjustment, and “Fixed” reinforces that the price stays the same regardless of costs the seller incurs. This arrangement gives price certainty to the buyer while placing cost risk on the seller. In procurement terminology, Firm-Fixed-Price is the standard name, so the other phrasings aren’t used in practice.