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I am trying to understand the different contract types used by the federal government. Our company has been doing commercial work, mostly with firm fixed price (FFP) agreements, for years. We just saw a Request for Quotation (RFQ) on SAM.gov for IT support services, NAICS 541519, that specified a time-and-materials (T&M) contract type. It was a small business set-aside. The deadline for questions has passed, so I can't ask the contracting officer directly.
What are the key differences between a firm fixed price (FFP) contract and a time-and-materials (T&M) contract? When would the government use one over the other?