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ontracts - these provide a set price for the work to be performed, with the least amount of risk for the government. Cost reimbursement contracts, on the other hand, have the government assuming the most risk by reimbursing the contractor for allowable costs. Time and materials contracts and labor hour contracts fall in between these two extremes, offering a balance of risk and flexibility. Selecting the right contract type is crucial as it impacts risk, incentives, and obligations for both parties involved in the acquisition process. Far part 16 outlines the different contract types available for contracting officers to use in acquisitions.
