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I don't think you are framing the problem correctly. You shouldn't be weighing the pros and cons of fixed-price and labor-hour contracts and deciding which is best. The default contract type for acquiring commercial services under a Federal Supply Schedule contract is fixed-price (see FAR 8.404(h)(2)). A labor-hour contract may be used, but the contracting officer would have to execute a D&F justifying, among other things, that a fixed-price order is not suitable (see FAR 8.404(h)(3)(ii)(A). FWIW, I think you would have a hard time justifying why a fixed-price order would not be suitable for mail services.
What problem would you be trying to solve by changing contract type?
You have an accurate cost estimate because you have a good handle on your requirements. As long as you got sufficient competition, hopefully one of the offers is in line with the cost estimate, I would think fixed price was the right choice. The fixed-price contract ought to be easier to administer and as Don pointed out, it's the default contract type. Fixed price can be a problem when you don't know your requirements (including demand patterns and changes to those demands). Ensuring those requirements are in performance terms helps as opposed to just buying X hours of time when sometimes you don't need X.
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