What are the different types of government contracts?

In California, there are several different types of government contracts. Generally, contracts between the state and private parties fall into one of four categories: procurement contracts, grant contracts, cooperative contracts, and public works contracts. Procurement contracts are what most people think of when they think of government contracts. This type of contract involves the purchase of goods or services by the government from a third-party. An example of a procurement contract would be a contract to buy a fleet of vehicles for a government agency. Grant contracts are awarded by a government agency to provide funds to an individual or organization for a specific purpose, such as a research or training program. The grantee is required to perform the agreed-upon activities, and the government typically provides oversight of the project. Cooperative contracts are similar to grant contracts, but the government does not provide the funds. Instead, the government enters into an agreement with a company or multiple companies to provide goods or services to the government at a pre-determined rate. Public works contracts involve the construction, repair, or renovation of public works such as roads, bridges, or buildings. These contracts are typically awarded through a competitive bidding process. The government sets the specifications, and the lowest bidder is awarded the contract. All of these types of contracts must comply with the laws of the state of California. These laws provide protections to ensure that the government is purchasing goods and services at fair market value and that contracts are awarded in a fair and transparent manner.

What are the different types of government contracts?

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