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It may depend on the department and available funding for the next year, but contractors typically get extended longer than a year if everything is working out for them and their managers. I knew maybe one person that was let go after an extension but they really weren’t performing great (example, they took naps at their desk while getting paid!).
I started at Comcast 7 years ago as a contractor and my offer was extended but I didn’t need it, as I got a full time opportunity with the company.