diff --git a/neat/globals/vm_placement/__init__.py b/neat/globals/vm_placement/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/neat/globals/vm_placement/bin_packing.py b/neat/globals/vm_placement/bin_packing.py
new file mode 100644
index 0000000..b002edd
--- /dev/null
+++ b/neat/globals/vm_placement/bin_packing.py
@@ -0,0 +1,61 @@
+# Copyright 2012 Anton Beloglazov
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+""" Bin Packing based VM placement algorithms.
+"""
+
+from contracts import contract
+from neat.contracts_extra import *
+
+
+@contract
+def best_fit_decreasing_factory(time_step, migration_time, params):
+    """ Creates the Best Fit Decreasing (BFD) heuristic for placing VMs on hosts.
+
+    :param time_step: The length of the simulation time step in seconds.
+     :type time_step: int,>=0
+
+    :param migration_time: The VM migration time in time seconds.
+     :type migration_time: int,>=0
+
+    :param params: A dictionary containing the algorithm's parameters.
+     :type params: dict(str: *)
+
+    :return: A function implementing the BFD algorithm.
+     :rtype: function
+    """
+    return lambda hosts_cpu, hosts_ram, vms_cpu, vms_ram, state=None: \
+        (best_fit_decreasing(hosts_cpu, hosts_ram, vms_cpu, vms_ram), {})
+
+
+@contract
+def best_fit_decreasing(hosts_cpu, hosts_ram, vms_cpu, vms_ram):
+    """ The Best Fit Decreasing (BFD) heuristic for placing VMs on hosts.
+
+    :param hosts_cpu: A map of host names and their available CPU frequency in MHz.
+     :type hosts_cpu: dict(str: int)
+
+    :param hosts_ram: A map of host names and their available RAM capacity in MB.
+     :type hosts_ram: dict(str: number)
+
+    :param vms_cpu: A map of VM UUID and their CPU utilization in MHz.
+     :type vms_cpu: dict(str: float)
+
+    :param vms_ram: A map of VM UUID and their RAM usage in MB.
+     :type vms_ram: dict(str: number)
+
+    :return: A map of VM UUIDs to host names.
+     :rtype: str
+    """
+    pass
diff --git a/tests/globals/vm_placement/__init__.py b/tests/globals/vm_placement/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/tests/globals/vm_placement/test_bin_packing.py b/tests/globals/vm_placement/test_bin_packing.py
new file mode 100644
index 0000000..2022195
--- /dev/null
+++ b/tests/globals/vm_placement/test_bin_packing.py
@@ -0,0 +1,49 @@
+# Copyright 2012 Anton Beloglazov
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+from mocktest import *
+from pyqcy import *
+
+import neat.globals.vm_placement.bin_packing as algs
+
+
+class BinPacking(TestCase):
+
+    pass
+    # @qc(10)
+    # def minimum_migration_time_factory(
+    #     x=dict_(
+    #         keys=str_(of='abc123-', min_length=36, max_length=36),
+    #         values=int_(min=0, max=3000),
+    #         min_length=1, max_length=5
+    #     )
+    # ):
+    #     alg = selection.minimum_migration_time_factory(300, 20, dict())
+    #     values = x.values()
+    #     vm_index = values.index(min(values))
+    #     vm = x.keys()[vm_index]
+    #     assert alg(dict(), x) == (vm, {})
+
+    # @qc(10)
+    # def minimum_migration_time(
+    #     x=dict_(
+    #         keys=str_(of='abc123-', min_length=36, max_length=36),
+    #         values=int_(min=0, max=3000),
+    #         min_length=1, max_length=5
+    #     )
+    # ):
+    #     values = x.values()
+    #     vm_index = values.index(min(values))
+    #     vm = x.keys()[vm_index]
+    #     assert selection.minimum_migration_time(x) == vm