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ContractingPeoplesHatred posted a topic in For Beginners OnlyHello, I am having trouble grasping this concept and was hoping for someone to give me an answer or at least a nudge in the right direction. At my organization that I just started at there are a lot of contracts that say "this order is issued on a firm fixed price basis" but the contracts are set up that they have a fixed unit price that the contractor submits based on the actual quantity incurred. Be it 130 hours for the month at $X.XX per hour or maintenance and repairs that we provided an estimated quantity but they invoice based on actual maintenance and repairs. The CLINs have a total amount on them but it is not stated it is a ceiling. These contracts just don't seem like Firm Fixed Price Contracts to me as they have variability in the total price. I think of a Firm Fixed Price Contract as an agreed to, at award, total amount that the contractor gets if they perform the work. If they only incur 10 hours they get loads of profit or if they incur 10,000,000 hours they lose money. What do you believe is the best practice when you have an unknown quantity but have a fixed unit price and you do not want to do an IDIQ? Can you explain where the line is drawn between FFP, T&M/LH, and a Firm Fixed Unit Price? From my limited explanation do you think these contracts should be issued as T&M/LH? Over a non-FAR contract type? If you have a variable quantity but a Fixed Unit Price is it considered a Firm Fixed Price Contract? If a contractor submitted an REA at the end of the contract saying that we owe them the full amount because we said "this order is issued on a firm fixed price basis" do you think they would win?