Firm Fixed Price and Cost Plus Fixed Fee Construction Contracts in Iraq and Afghanistan
Abstract
Firm Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF) contract types have been utilized the most for construction in the Iraq and Afghanistan theaters. Often construction occurs in contested regions that are known to be particularly challenging, unpredictable, and unstable. The objective of this study was to analyze the performance of these two contract types in the contingency environment, and to determine what internal and external factors influence contact success the most. First, the author evaluated existing construction performance data using bivariate analysis and analysis of variance to identify differences in contract type. Next, a quantitative/qualitative questionnaire was administered to contracting personnel to obtain their opinions on the factors that they perceived to have the most impact on contingency contract performance. The synthesis of this information was used to determine what key performance/risk measures affected the success of each contract type the most, and what measures could be beneficial for evaluating contingency construction contract success in the future. The findings showed that there was no proven advantage in cost performance for either contract type. FFP contracts controlled schedule growth significantly better than CPFF contracts, and CPFF contracts resulted in a better quality product. Overall, understanding project performance in a contingency environment involves examining a number of variables that may impact projects in unique ways based on the chosen contract type.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2012
- Accession Number
- ADA559666
Entities
People
- Lindsay M. Jaszkowiak
Organizations
- Air Force Institute of Technology