There are two major families of contracts referred to as Cost Types and Fixed Types.
Cost Types include Cost-plus-award-fee (CPAF) contracts, Cost-plus-fixed-fee (CPFF) contracts, and Cost-plus-incentive-fee (CPIF) contracts.
Fixed Types include Firm-Fixed Price and Fixed-Price Incentive (Firm Target) contracts.
The following diagram shows the major systems continuum of contract types:
