Please use this identifier to cite or link to this item:
https://dair.nps.edu/handle/123456789/432
Title: | Unintended Consequences of Advocating Use of Fixed-Price Contracts in Defense Acquisition Practice |
Authors: | Chong Wang Joseph San Miguel |
Keywords: | MDAP Cost Plus Contracts Defense Procurement System Fixed Price Contracts |
Issue Date: | 30-Apr-2011 |
Publisher: | Acquisition Research Program |
Citation: | Published--Unlimited Distribution |
Series/Report no.: | Fixed-price SYM-AM-11-031 |
Abstract: | Frequent and substantial cost overruns in Major Defense Acquisition Programs (MDAP) have been criticized by the administration, lawmakers, and taxpayers. Critics often blame the dominant use of cost-plus contracts in the defense procurement system as the root cause of the inefficiency. In turn, a strong preference for fixed-price contracts as opposed to cost-plus contracts has been expressed on multiple occasions. In this research, we highlight the possible unintended consequences of advocating wider use of fixed-price contracts in Department of Defense (DoD) acquisitions. The implication of this study is that the mindset that fixed-price contracts are better than cost-plus contracts is misleading and can potentially do more harm than good in DoD major weapon system acquisition. |
Description: | Acquisition Management / NPS Faculty Research |
URI: | https://dair.nps.edu/handle/123456789/432 |
Appears in Collections: | Annual Acquisition Research Symposium Proceedings & Presentations |
Files in This Item:
File | Size | Format | |
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SYM-AM-11-031.pdf | 122.07 kB | Adobe PDF | View/Open |
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