Letter: Officials need all contracts in toolbox
One reader writes, "Sen. McCain's suggestion would result in a contract freeze similar to the current credit freeze."
Regarding "McCain wants to end cost-plus contracting": Removing any type of contract from the government's toolbox reduces the government's ability to manage risk and results in increased expenses to the government.
Removing cost-plus contracts means the government must be responsible for completely developing the requirements and work scope, which will cost money and delay work. It will also result in overall higher costs because contractors, in order to stay healthy, must bid firm fixed-price contracts much differently than other types of contracts. For example, firm fixed-price contracts demand a reserve and higher rates.
Sen. McCain's suggestion would result in a contract freeze similar to the current credit freeze. To reverse the contract freeze, the government will end up paying more for the same work.
Anonymous
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