What kind of contract can a newly minted contractor bid for?

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My answer to What kind of contract can a newly minted contractor bid for?

Answer by Ken Larson:

Your contract type will be driven by two factors:

  1. The business you are in
  2. The amount of risk in the contract.

A contractor is either in the products or services business or both. A service contract could be a mix of products and services or a product contract could have services connected to in to support the product life cycle.

Contracts types generally refer to risk involved. A firm fixed price contract has the highest risk, since the price is locked and not subject to an increase unless the specification or work scope changes. A cost plus contract will reimburse every cent the contractor incurs plus a reasonable profit.

Perhaps the greatest mix of government contract types is with the federal government. In between the above types are a myriad of other contract arrangements explained in the following article.

FEDERAL GOVERNMENT CONTRACT TYPES

What kind of contract can a newly minted contractor bid for?

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About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: http://www.micromentor.org/ key words: "Federal Government Contracting"

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