Contractor Support at Major Range and Test Facility Bases - Contractors' Fees
Abstract
Effective and efficient management of cost-reimbursement service contract costs contribute to DoD's overall objective of reducing the Defense budget. The Defense budget for cost-reimbursement and service contracts was $23.5 billion and $11.7 billion, respectively, for FY 1989. We identified 14 test ranges that had cost-plus-award-fee service contracts that were effective during FY's 1988 through 1990. The total value of the contracts was $3.7 billion. The Government has the flexibility to use various types of contracts to acquire the large variety and volume of materiel and services that it requires. One type of contract is a cost- reimbursement contract, which provides payment of allowable incurred costs. An example of a cost-reimbursement contract is a cost-plus-award-fee contract. Cost-plus-award-fee contracts provide a fee consisting of a base amount, which may be zero, that is established at the contract's inception and an award amount, which is based on a subjective evaluation by the Government, that is sufficient to maximize the contractor's performance.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 21, 1991
- Accession Number
- ADA380110
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense