Use of Fixed-Price Incentive Firm (FPIF) Contracts in Development and Production

Abstract

The choice of appropriate contract types is very situationally dependent, and a number of factors must be taken into account to determine the best contract type to use. From the perspective of both industry and the government, it makes a good deal of difference whether the Defense Department asks for Cost type, Fixed-Price Incentive (FPI), or Firm Fixed Price (FFP) proposals. In the original Better Buying Power (BBP) initiatives, although Dr. Carter and I encouraged greater use of FPI, we also included the caveat "where appropriate." BBP 2.0 modifies this guidance to stress using appropriate contract types while continuing to encourage use of FPI for early production.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 2013
Accession Number
ADA608638

Entities

People

  • Frank Kendall

Organizations

  • Office Of The Under Secretary Of Defense

Tags

Communities of Interest

  • Air Platforms
  • Ground and Sea Platforms
  • Materials and Manufacturing Processes
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Behavior And Behavior Mechanisms
  • Commerce
  • Contractors
  • Contracts
  • Costs
  • Environment
  • Fixed Price Contracts
  • Governments
  • Littoral Combat Ships
  • Military Acquisition
  • Motivation
  • Procurement
  • Production
  • Tactical Aircraft
  • Vehicles

Readers

  • Computational Modeling and Simulation
  • Defense Acquisition Program Management
  • Government Contracting/Procurement.