Department of Defense Contracting: Considerations for Selecting Contract Type
Abstract
Selection of the type of contract is a primary mechanism Department of Defense (DoD) contracting professionals use to manage the risks inherent in the procurement of materiel and services. The contract type determines the degree of risk that is allocated between the contractor and the DoD. The contract type also establishes the degree to which unique government requirements are applicable to the procurement. The objective for DoD contracting professionals is to select a contract type that results in reasonable contractor risk with the greatest incentive for efficient and economical contract performance (best value). DoD contracting professionals do not always adequately take into account the effect of the terms and conditions when planning for the contract type used for procurement of materiel and services. This results in contracting decisions that impose a greater total cost to the DoD than appropriate to mitigate contract risk. This leads to procurement of materiel and services that do not provide the best value to the DoD. This research paper addresses the process for selection of contract type, the major DoD requirements based on contract type, problems associated with the consideration of these requirements during the selection of contract type, and recommended improvements. (2 tables, 34 refs.)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 03, 2004
- Accession Number
- ADA424344
Entities
People
- Stephen B. Leisenring
Organizations
- United States Army War College