The Suitability of Fixed Price Award Fee Contracts for the Navy Commercial Activities Program

Abstract

Office of Management and Budget (OMB) Circular A-76 established Federal policy concerning the performance of commercial activities (CA). The Circular establishes criteria for conducting cost comparison to determine whether a CA is more economically performed by the Government or by the private sector. Performance by the private sector is accomplished through the formation of contracts. The research of this thesis focused on the suitability of fixed price award fee (FPAF) contracts for private sector performance of commercial activities. Research included a review of existing guidelines, interviews with managers and policy makers, and examination of four specific cases where FPAF contracts were employed on an experimental basis to determine their benefits and detriments. The study concludes that FPAF contracts may be suitable, but that more fundamental changes in the commercial activities program are necessary and should precede wide use of FPAF contracts.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1988
Accession Number
ADA200942

Entities

People

  • Christopher W. Webster

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Business Administration
  • Congress
  • Contract Administration
  • Contracts
  • Department Of Defense
  • Employment
  • Federal Budgets
  • Fixed Price Contracts
  • Government Procurement
  • Governments
  • Logistics
  • Management Personnel
  • Naval Operations
  • Navy
  • Organizational Structure
  • Personnel Management
  • United States

Readers

  • Government Contracting/Procurement.
  • Systems Analysis and Design