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TeachMeFinance.com - explain cost-type contract cost-type contract 'cost-type contract' is an military term meaning '(DOD) A contract that provides for payment to the contractor of allowable cost, to the extent prescribed in the contract, incurred in performance of the contract'. Previous 5 Terms: corner reflector corps support command corps troops_ correlation factor _ cost-plus award fee contract- Next 5 Terms: counter C3 counterair counterattack_ counterbattery fire _ counterdeception- Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.