Blank Rome – Many predict that, among other procurement and regulatory reforms, the new administration will implement policies favoring the award of fixed-price government contracts and grants. Throughout the years, the procurement pendulum has swung back and forth in favor of and against fixed-price contracting.
The proposal to expand the use of fixed-priced awards has also been made for development assistance to more effectively pay for results. See earlier Pub K Development post here. Implementing fixed priced awards in development and humanitarian assistance is risky for contractors and recipients because of the challenges of managing costs and delays in most countries. Implementers must become more adept at tracking changes and costs to request price adjustments for impacts beyond their control.
