Risk transference
Government needs to understand the risks being assumed by industry, which includes things like selecting the correct contract type for the requirement and set realistic milestones.
AdminACT-IAC
(Admin, Better Government IT)
shared this idea
2 comments
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Jaime Gracia commented
Agencies also incorrectly see FFP contracts as being mandated by OFPP. Of course that is not the case, but perception is reality. Contract type is chosen based on risk and requirements. The goal is to create more FFP contracts, but only when requirements are clearly defined and baselined.
An understanding of how industry prices contracts, by type, and how industry performs and views the different contract types is desperately needed. Current offerings are inadequate by DAU/FAI.
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Ed Rinkavage
commented
Far too often during the pendulum swing, the FAR is amended to incorporate provisions that are politically driven and not part of "good contracting sense." For example, why are FFP task orders being mandated against requirements that can not be well defined? Because "we have too" notes a CO, "it takes too long to get HQ approval to do T&M." Industry absorbs all the risk and delivers a service that doesnt address the solution needed for the customer. The procurement becomes a CO driven solution and not a technically driven or customer focused solution.
