Re:Nelson testifies cost-plus contracts have been a “plague”...
by chmod775 on Wednesday May 04, 2022 @03:16PM
(#31264650)
> There must be some way to structure contracts to allow for cost of developing new technologies
Make companies evaluate and eat the risk by allowing them to set the fixed price...
> yet incentivizes minimizing that cost.
... where they are bidding on the contract against other companies.
This only works if you have a market with multiple players, which is possibly the main reason NASA is more heavily leaning towards fixed-price contracts now.
Make companies evaluate and eat the risk by allowing them to set the fixed price...
> yet incentivizes minimizing that cost.
... where they are bidding on the contract against other companies.
This only works if you have a market with multiple players, which is possibly the main reason NASA is more heavily leaning towards fixed-price contracts now.