After moving acquisition milestone authority to the services last year, the Senate Armed Services Committee now has contracting in its sights for reform in the 2017 defense authorization bill known as the National Defense Authorization Act (NDAA).
The committee’s version of the bill tried to wean DoD off of its reliance on cost contracts in favor of fixed price contracts.
“The whole culture of cost contracts cuts across everything. … Cost contracts are almost a drug,” said a committee staffer. “Really, what has happened over the course of decades is that the Department of Defense’s dependence on [cost contracts] has created some really, really negative incentives for the contractors and for the government.”
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