FEMA reimburses costs incurred using three types of contract payment obligations. For each of these three contracts, the Applicant should supply FEMA with all documentation pertaining to the contracts. The contracts FEMA reimburses the Applicant for include:

• Fixed-price
• Cost-reimbursement
• Time and materials (only to a limited extent)
• Time and materials contracts do not provide incentives to the contractor for cost control or labor efficiency
• FEMA does not reimburse costs incurred under a cost plus a percentage of cost contract or a contract with a percentage of construction cost method

The specific contract types related to each of these are described in FEMA's Procurement Guidance for Recipients and Sub-Recipients Under 2 C.F.R. Part 200 (Uniform Rules).

The Applicant must include required provisions in all contracts awarded and maintain oversight to ensure contractors perform according to the conditions and specifications of the contract and any purchase orders.