Federal Acquisition

CHAPTER 6

Acquisition Methods and Selecting the Appropriate Type of Contract

(FAR parts 14, 15, and 16)

In the past few years, acquisition audit reviews have found that there is a growing trend toward the use of time-and-materials and cost-plus contracts. Unfortunately, these contract types are often selected only because the government cannot explain what it wants. They place little risk on the contractor and are very costly, practically allowing the contractor to spend as much as it wants to, so they should not be used unless their use can be justified. Acquisition professionals should spend taxpayer dollars wisely by making an effort to use contract types that impose sufficient but not undue risk on the contractor to encourage good performance. ...