FAR 52.216-1—Type of Contract.
Plain-English Summary
FAR 52.216-1, Type of Contract, is a simple solicitation provision that tells offerors what kind of contract the Government expects to award if the procurement results in an award. It is prescribed by FAR 16.105 and is used to identify the specific contract type the contracting officer plans to use, such as fixed-price, cost-reimbursement, time-and-materials, labor-hour, or another authorized type. The provision does not itself create the contract type or set the detailed terms of performance; instead, it gives bidders and offerors advance notice of the basic pricing and risk structure they should expect. In practice, this matters because contract type affects how proposals are prepared, how pricing is evaluated, how risk is allocated between the Government and contractor, and what accounting, billing, and performance controls will apply after award. The provision is intentionally brief, but it is important because it prevents ambiguity about the Government’s intended contracting approach and helps ensure the solicitation is consistent with the acquisition strategy and the requirements of FAR Part 16.
Key Rules
State the intended contract type
The contracting officer must insert the specific type of contract the Government contemplates awarding. The blank must be completed with an actual contract type, not left generic, so offerors know the expected pricing and risk arrangement.
Use only when prescribed
This provision is included when required by FAR 16.105. It is a solicitation provision, so it belongs in the solicitation rather than the resulting contract unless incorporated by reference or otherwise made part of the award documents.
Provide notice, not commitment
The provision says the Government 'contemplates' award of the stated contract type. That language gives notice of the planned contract structure but does not guarantee award, and it does not prevent the Government from changing course if the acquisition is amended or otherwise lawfully modified before award.
Align with acquisition strategy
The stated contract type should match the acquisition plan, market research, and source selection approach. A mismatch between the solicitation’s stated contract type and the actual intended award can create confusion, protest risk, or evaluation problems.
No detailed terms supplied here
This clause does not define the rights and obligations associated with the contract type; those details come from the applicable FAR clauses, solicitation sections, and the final contract. The provision is only a label and notice mechanism.
Responsibilities
Contracting Officer
Insert the correct specific contract type in the solicitation, ensure it matches the acquisition strategy and applicable FAR requirements, and avoid leaving the provision incomplete or inconsistent with the rest of the solicitation.
Offeror/Contractor
Review the stated contract type and prepare the proposal, pricing, accounting approach, and risk assumptions accordingly. If the stated type appears inconsistent with the solicitation or the contractor’s understanding, raise questions during the solicitation period.
Agency
Support an acquisition strategy that selects an appropriate contract type and ensures the solicitation reflects that decision. The agency must maintain consistency between planning documents, funding approach, and the solicitation’s stated contract type.
Practical Implications
This provision is a key signal to the market about how the Government intends to buy the requirement, so contractors should treat it as a major pricing and risk indicator.
A common pitfall is failing to insert the correct contract type or using a vague description, which can create ambiguity and invite questions or challenges.
Offerors should not assume the provision controls every term of performance; the actual contract clauses and award document determine the operative obligations.
Contracting officers should verify that the stated contract type matches the solicitation’s evaluation method and the clauses included elsewhere in the package.
Because the clause is brief and formulaic, its main practical value is clarity: it helps prevent misunderstandings before award about whether the work will be fixed-price, cost-reimbursement, or another authorized type.
Official Regulatory Text
As prescribed in 16.105 , complete and insert the following provision: Type of Contract (Apr 1984) The Government contemplates award of a ______________ [ Contracting Officer insert specific type of contract ] contract resulting from this solicitation. (End of provision)