Which of the following is a common type of contract used in public procurement?

A fixed-price contract is a common type of contract used in public procurement because it provides a predetermined price for the goods or services being procured. This type of contract is advantageous for public entities as it allows for better budgeting and cost control. It establishes a clear expectation of costs upfront, which is crucial when managing public funds.

In public procurement, agencies often seek to minimize financial risk and ensure accountability, and fixed-price contracts fulfill these requirements by transferring the risk related to cost overruns to the contractor. This promotes efficiency, as contractors have an incentive to complete the work within the agreed budget, potentially leading to lower overall costs for the government.

The other contract types mentioned—such as revenue-sharing and lease-to-own contracts—are not typically utilized in public procurement contexts. Informal agreements lack the formal structure and regulatory compliance required for public contracts. Therefore, fixed-price contracts stand out as the standard choice in the realm of public sector procurement.