Which type of contract does not hold contractors liable for loss of government property?

Cost-reimbursement contracts are structured in a way that allows contractors to be reimbursed for allowable costs incurred in the performance of the contract. This means that the government agrees to cover these costs, which can include expenses related to labor, materials, and overhead, without holding the contractor responsible for losses related to government property.

In this type of contract, financial risk is primarily borne by the government. Contractors are not held liable for government property lost during performance, as long as the loss is not due to willful misconduct or a lack of reasonable care. This aligns with the nature of cost-reimbursement contracts, which are designed to encourage contractors to undertake projects where the end costs may be uncertain or unpredictable.

Consequently, the other types of contracts—time-and-material, labor-hour, and fixed-price contracts—do not share this same liability structure concerning government property. In those contracts, contractors have more risk and responsibility regarding the management and protection of government property, which includes being accountable for any potential loss.