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The correct answer will be a) Firm fixed price which is not a common type of contract
A Firm-Fixed-Price (FFP) contract specifies a price that cannot be adjusted based on the contractor's cost experience in performing the contract.
This contract type imposes maximum risk and full responsibility for all costs and resulting profit or loss on the contractor. It provides the contractor with the greatest incentive to control costs and perform effectively while imposing the least amount of administrative burden on the contracting parties.
The main advantage of using a firm-fixed-price contract is that the agreed-upon price is guaranteed. The contractor assumes all risk in order to deliver within the contract price. Any overages or deviations must be borne by the contractor.
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