A contractor is paid $250,000 for the initial period of the contract, but the contracting officer was unable to determine the value after doing initial. The price has increased because of the cost of one of the supplies needed. the CO will review the contract after the initial period to determine a fair and reasonable price for the second year. Which contract type is used in this scenario?

1. Cost sharing contract
2. Fixed-price contract with perspective price redetermination
3. Fixed-price contract with award fees
4. Time-and-materials contract.