Following are the types of fixed price contract: • Firm Fixed Price(FFP) as described • Fixed Price Plus Incentive Free(FPIF) cost reimbursable contract. In cost reimbursable contract seller's costs are reimbursed in addition to some extra amount. In this type, buyer bears most of the cost risk as total project costs are not known. Government Contracting: The Pros and Cons The United States spent over 171 billion dollars on contractual services in 2018. If your company wants to access some of that money by becoming a government contractor, you should first be aware of and understand the potential advantages and disadvantages that come with the job.