The Contractual Placements are made on the contract basis which is generally for a limited period of time. A wide range of contract types are available to the Government and private contractors in order to provide requisite flexibility in acquiring the large variety and volume of supplies and services needed by agencies. The Contract types vary according to:

• The intensity or degree and timing of the responsibility assumed by the contractor for the costs of performance; and
• The magnitude and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals.

The contract types are classified into two broad categories: fixed-price contracts and cost-reimbursement contracts.
Factors affecting the contract types :

• Price competition
• Price analysis
• Cost analysis
• Type and complexity of the requirement
• Urgency of the requirement
• Period of performance or length of production run
• Contractor's technical capability and finacial responsibility
• Adequacy of the contractor's accounting system
• Concurrent contracts
• Extent and nature of proposed subcontracting
• Acquisition history