SEWP VI Order Types: FFP, T&M, and Level-of-Effort — When Each Applies

SEWP VI orders are not all priced the same way. The order type — firm-fixed-price, time-and-materials, or level-of-effort — defines the risk you absorb and the pricing discipline you apply. Quoting an order without understanding its type is quoting without understanding your risk. GovCon Architect is an independent platform and is not affiliated with, endorsed by, or sponsored by NASA or the SEWP Program Office. Program information is published at the NASA SEWP site.

Firm-fixed-price (FFP)

FFP orders place the cost risk on the holder. You commit to a price for a defined deliverable; if your delivery costs more, your margin erodes. FFP rewards holders with precise scope definition, accurate effort estimation, and disciplined delivery. The danger is under-pricing a scope you do not fully understand — a common failure when the order's statement of objectives is open to interpretation. When you quote FFP, invest in scope clarity before price.

Time-and-materials (T&M)

T&M orders price labor at rates against hours actually worked, with materials priced separately. The cost risk is shared: the customer pays for effort delivered; the holder bears the staffing and productivity risk. T&M rewards holders with strong staffing pipelines and disciplined timekeeping. The danger is proposing labor categories or rates you cannot actually deliver, or underestimating the hours a complex scope will require.

Level-of-effort (LOE)

LOE orders commit to a level of effort — a number of hours or full-time-equivalents over a period — rather than a specific deliverable. The risk is staffing: you commit to providing the effort, and your margin depends on staffing efficiency. LOE rewards holders with stable, deployable benches. The danger is committing an LOE you cannot staff, which becomes a delivery failure and a vehicle-reputation risk.

Match the type to your readiness

Each order type rewards a different operational strength and punishes a different weakness. A pursuit score that accounts for order type — and your readiness for that type's risk profile — prevents the pursuit of an order whose structure does not fit your operating model. GovCon Architect's SEWP engine factors order type into the response-feasibility and pricing-competitiveness scores so the pursue decision reflects the actual risk, not just the fit.