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Moving away from cost-plus contract funding is something that is needed but is an enormous fight. Every government contractor loves cost-plus. Bid low on cost
by tastyfreeze 5y ago
Moving away from cost-plus contract funding is something that is needed but is an enormous fight. Every government contractor loves cost-plus. Bid low on cost to get the contract then just keep amending the contract with added cost.
I agree that all government contracts should be fixed bid. It is wholly the contractor's responsibility to determine if they can be profitable on the contract or not. We should not be on the hook for added cost.
- nradov 5y agoIt's fine for most infrastructure projects to be firm fixed price (with bonus incentives for early completion or higher quality). But there are other projects for which cost plus is the only viable option. Sometimes there's so much technical risk and uncertainty that no sane contractor would even submit a fixed price bid.