Which of the following is NOT a type of contract discussed?

In the context of purchasing and contracting, understanding the types of contracts is crucial for any Qualified Purchasing Agent. A cost-plus contract is a method in which the contractor is paid for all of their allowed expenses, plus an additional amount for profit, which differentiates it from other contract types.

The firm fixed pricing type establishes a set price for the project regardless of the actual costs incurred, making it quite distinct. The lease with option to buy allows the lessee to purchase the leased item at a set price after a specified period, which is a common practice in leasing agreements but not typically categorized within standard contract types in procurement contexts. Time and material contracts, on the other hand, involve payment based on the time spent and materials used, which is a recognized and commonly used contract type.

Understanding these definitions reveals that a lease with option to buy is not typically categorized as a standard type of contract under the usual procurement language, as it pertains more to leasing structures rather than the traditional transaction methods emphasized in procurement training.