ThunderHorse
Verified Military
I appreciate you thinking of me but I’m Beerfest DasBoot.... that’s that other guy.
Do you think that we need to fix price more contracts? Forget for a moment you work for one but think in terms of being a tax payer.
Yes, hands down or at least reard companies who come in at or under budget with penalities for busting their budget and/ or deliverable dates. Cost plus encourages companies to drastically underbid because they know they will make up the money. A contract I used to work was something like 337 million over 5 years. We went over budget by 3.5 to 4 million. That's pretty tame when you think about it with almost all of that due to labor. They cut manning and then had to shell out for overtime, which is still cheaper than carrying 20-30 extra guys on contract to cover those manning gaps.
FFP would/ should make companies think about their pricing and more importantly, their "promises."