A contract is how the U.S. Government purchases or procures products or services that are for the direct benefit and use of a government agency. A contract is a legally binding agreement that is governed by the Federal Acquisition Regulation (FAR) .
There are two types of contract awards:
- A single award contract is a contract awarded to a single vendor. Any task orders issued against the single award contract go to the single vendor to be completed.
- A multiple award contract is a contract awarded to multiple vendors. Any task orders issued against a multiple award contract are competed for amongst the pool of vendors awarded the contract.
The contract arrangement details how your business will be paid. The two most common types of arrangements are:
Different arrangements place more or less of the financial risk of the contract on the contractor. You’ll need to decide what level of risk, and what type of arrangements, you’re willing to accept.
Learn more about contract arrangements in Section 16 of the FAR.