Letter: T&M contracts not necessarily risky

Regarding "DOD toughens checks on risky contract type"

The choice of titles for this article showed a narrow — one could say one-sided — perspective that misrepresents the subject to some extent.

Time and materials contracts are not necessarily inherently risky unless the entity contracting for the product or service does not understand its requirement and/or cannot effectively articulate it to the contractor. This is all too often the case for the government, particularly the Defense Department. In this case, T&M can be risky for contractors as well, since there is significant scope and other associated impacts.

In my opinion, T&M is unpopular today mostly because the government cannot absolve accountability for its constant changes and poor vision. If T&M is deemed risky to the government because the contractor doesn't understand the requirement, this should be evident in proposal reviews where the requirement is solidly defined,  in which case the risk to government should be minimized already.

Anonymous

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

Featured

  • Defense
    The U.S. Army Corps of Engineers and the National Geospatial-Intelligence Agency (NGA) reveal concept renderings for the Next NGA West (N2W) campus from the design-build team McCarthy HITT winning proposal. The entirety of the campus is anticipated to be operational in 2025.

    How NGA is tackling interoperability challenges

    Mark Munsell, the National Geospatial-Intelligence Agency’s CTO, talks about talent shortages and how the agency is working to get more unclassified data.

  • Veterans Affairs
    Veterans Affairs CIO Jim Gfrerer speaks at an Oct. 10 FCW event (Photo credit: Troy K. Schneider)

    VA's pivot to agile

    With 10 months on the job, Veterans Affairs CIO Jim Gfrerer is pushing his organization toward a culture of constant delivery.

Stay Connected

FCW INSIDER

Sign up for our newsletter.

I agree to this site's Privacy Policy.