In which type of contracts are fees typically not charged to the contractor?

Cost sharing contracts are designed so that the costs of a project are shared between the contractor and the government, meaning the contractor does not charge fees for their work. Instead, both parties agree to contribute to the costs incurred during the project. This type of contract typically involves a commitment from the government to reimburse a portion of the contractor's costs up to a certain limit, making it an arrangement focused on shared responsibility and investment in the project rather than profit generation for the contractor.

Such contracts are often used for projects where innovation or research is needed, allowing both the government and the contractor to invest in areas where the risks and benefits are shared. The absence of fees for the contractor further encourages collaboration and resource pooling between the two entities without the emphasis on profit margins that can typically be found in other contract types. This aligns with practice in sectors where shared objectives are paramount, and where success depends on joint efforts rather than straightforward financial transactions.