The original implementation of DoD’s “Better Buying Power” initiative heavily promoted the use of Firm Fixed Price (FFP) contract types. Many federal agencies adopted this approach with the intent to control costs and limit the Government’s risk exposure on acquisitions. This does not remove risk from the acquisition itself, and may not even reduce it. …
Continue reading “Three MORE Things to Consider When Choosing Contract Types”
As fiscal pressures rise, senior leaders across the federal government place additional emphasis on Firm-Fixed Price (FFP) contracts. A prime example is the Department of Defense “Better Buying Power” memoranda. FFP contracting is an important method to add simplicity and cost efficiency, but with respect to services, FFP contracting is not always appropriate. When bound …
Continue reading “The Hidden Costs of Firm-Fixed Price Contracts”
