Final answer:
The government risk level, contractor risk level, government risk sharing level, and contract cost level can vary depending on the contract type.
Step-by-step explanation:
In terms of Government Risk Level by contract type, the risk level can vary from low to high. For example, a fixed-price contract may have a lower risk level for the government as the contractor bears the risk of any cost overruns. On the other hand, a cost-plus contract may have a higher risk level for the government as they are responsible for reimbursing the contractor for the actual costs incurred, regardless of the final project cost.
When it comes to Contractor Risk Level by contract type, the risk level can vary from high to low. For instance, a firm-fixed-price contract may have a lower risk level for the contractor as they have a fixed price and are not responsible for any cost overruns. In contrast, a cost-reimbursement contract may have a higher risk level for the contractor as they are responsible for managing and controlling costs.
Government Risk Sharing level by contract type can also vary. Certain contract types, such as fixed-price contracts, may entail less risk sharing with the government as the contractor bears most of the risk. Conversely, other contract types, like cost-plus contracts, may involve more risk sharing with the government as they reimburse the contractor for a percentage of the allowable costs.
Contract Cost Level by contract type can range from low to high. Each contract type has its own cost implications. For example, a fixed-price contract typically has a defined and fixed cost, whereas a cost-reimbursement contract has a variable cost that depends on the actual costs incurred.