Respond to both forums separately with 100 words 1. The President wanted to reduce cost-reimbursement contracts because there was not a cap on what the federal governm spending on projects. Cost-reimbursement contracts had proven to be wasteful and inefficient. The federal government had doubled spending from $71 billion to $135 billion in eight years.
Firm fixed type contracts are preferred because it provides incentive for the contractor to be mindful of costs and still perforrr requested. More of the risk in a fixed type contract is on the provider of the service or good, not the government. Also, fixed contracts provide the government the ability to allocate dollars of a current fiscal year to be spent at a later time. For example contract for flooring to be replaced in a government building could be negotiated and awarded this fiscal year (FY20) and thE allocated from this fiscal year, yet the job not be completed until fiscal year 2021, therefore paid in full on that future date.
Cost-reimbursement contracts give the contractor more room to complete the job under the prescribed circumstances, so lor does not exceed the ceiling that was agreed upon. Although, that said ceiling can be surpassed as long as the contractor inf. contracting officer what additional labor or materials may be needed, and those new additional requirements are agreed upo government assumes most risk in these circumstances.
Competition is favored over sole sourcing because it discourages the perception of favoritism. It gives all qualified contractor opportunity for business. Also, it gives the government confidence it is paying fair or market costs for the requested service. competition fosters innovation and quality, helping the government potentially better its own abilities.
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