Fixed-Price, Variable Outcome Contract Type: A Leap in Reform or Leap or Faith

摘要

The Under Secretary of Defense for Acquisition, Technology and Logistics commissioned a group to study price-based acquisition in 1998 in a continuing effort to reform the Government acquisition process. Acquisition reform is intended in part to encourage traditionally non-Department of Defense contractors to participate in Department of Defense acquisitions. The Price- based Acquisition (PEA) Study Group reported out in November 1999, The report defined price-based acquisition and made recommendations to implement PEA. One of those recommendations was to create and use a new contract type. The report states, 'We have concluded that there is a place for a new contracting approach and contract type, Fixed-price, Variable Outcome. This approach is particularly applicable to and will allow many high-risk Science and Technology (S&T), risk reduction, and service contracts to be firm-fixed-price'. The focus of this thesis is to analyze the concept behind the Fixed-price, Variable Outcome (FPVO) contract type, compare the FPVO to other existing contract types, explore the most beneficial applications of the FPVO and finally make recommendations based upon the data and analysis.