(b) The contract types are grouped into two broad categories: fixed-price contracts (see subpart 16.2) and cost-reimbursement contracts (see subpart 16.3). (2) The amount and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals. (1) The degree and timing of the responsibility assumed by the contractor for the costs of performance and (a) A wide selection of contract types is available to the Government and contractors in order to provide needed flexibility in acquiring the large variety and volume of supplies and services required by agencies.
