Report FFP treated as Cost Reimbursable in Contract Administration Posted August 10, 2020 43 minutes ago, joel hoffman said: Actually, it says that “ (a) firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract.” I think it would be clearer if it said "solely on the basis of the contractor's cost experience." That sentence has confused many students. 51 minutes ago, joel hoffman said: However, It can also be adjusted on the basis of the contractor’s actual cost experience in some instances. Some examples are directed and constructive changes, a differing site condition, a variation in estimated unit priced quantities beyond a certain range (if the unit cost of the work outside of the range varied from the contractors unit cost within the range), newly imposed excise taxes, labor escalation or reductions at time of award of options and other contract clauses that may provide for price adjustments. Joel has it right. There is no right to a change in price due to a differing site condition unless it affects the contractor's cost experience.