3 ms·

My brief search indicates that is wrong: https://arstechnica.com/science/2022/05/nasa-chief-says-cost-plus-contracts-are-a-plague-on-the-space-agency/ https://

• OrvalWintermute 3y ago
  Uncapped cost plus contracts (Time and Materiels contracts) are a plague, but not for the same reason, just like a Firm-Fixed Price contract that moves all risk to the contractor are a plague too, because if the contractor is carrying all the risk, they're going to make the government pay for all that risk (and aerospace engineering is risky). Any contract type where the political leadership can't terminate a contract for cause due to excessive political pressure, or is forced into paying through the nose, is untenable. The solution for that is not Firm Fixed Price or T&M contracts - but instead larger budgets and also multiple award contracts where you have simultaneous efforts competing against each other. When there are 5 options, all having company skin in the game, all as viable paths forward, and 1 option loses out, terminating for cause, enriching the other 4, no harm no foul.