Letter: Officials need all contracts in toolbox

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


What do you think? Paste a comment in the box below (registration required), or send your comment to [email protected] (subject line: Blog comment) and we'll post it.


Featured

  • Image: Shutterstock

    COVID, black swans and gray rhinos

    Steven Kelman suggests we should spend more time planning for the known risks on the horizon.

  • IT Modernization
    businessman dragging old computer monitor (Ollyy/Shutterstock.com)

    Pro-bono technologists look to help cash-strapped states struggling with legacy systems

    As COVID-19 exposed vulnerabilities in state and local government IT systems, the newly formed U.S. Digital Response stepped in to help.

Stay Connected