The definition of "contracts" in the federal contracting context encompasses various forms of formal agreements, and job orders and letter contracts are included due to their binding nature and the specific terms they entail.
Job orders and letter contracts are types of contracts that allow for work to be initiated before the final terms are fully negotiated or finalized. They demonstrate a commitment to perform the work and are recognized as legally binding agreements. This aligns with the broader understanding of what constitutes a contract within federal regulations.
In contrast, while verbal agreements may establish terms between parties, they often lack the required formalities and enforceability expected in federal contracts. Purchase orders, while significant, do not capture the broader spectrum of contract types that include commitments reflecting the mutual assent of parties in a formal contracting process. Lastly, memorandums of understanding typically serve more as documentations of intent and are not legally enforceable, thus falling out of the strict definition of contracts used in federal procurement.