DoD contracts come in a variety of forms, but the most common types of DoD contracts awarded are:
Fixed-Price Contracts: Fixed-price contracts are the most common type of DoD contract, in which a contractor is paid a pre-determined price for goods and services.
Cost-Reimbursement Contracts: Cost-reimbursement contracts require contractors to pay out-of-pocket expenses incurred during work and be reimbursed upon completion with an additional fee to cover overhead costs.
Time and Materials Contracts: Time and materials contracts provide contractors with an agreed-upon hourly rate for labor costs and a flat fee for materials.
Indefinite Delivery/Indefinite Quantity (ID/IQ) Contracts: IDIQ contracts allow multiple orders over a specified period and blanket purchase agreements are available for repeat purchases like office supplies.