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March 1, 2021 By cs

GAO: DoD has increased use of fixed-price-incentive contracts but should assess contributions to outcomes

Department of Defense guidance encourages the use of fixed-price-incentive (FPI) contracts to acquire major weapon systems, where appropriate.

These contracts can provide contractors with incentives to keep costs in check and stay on schedule.

The Government Accountability Office (GAO) found that the DoD’s use of these contracts has increased since 2010; they accounted for about half of all DoD obligations for its major weapon systems in 2019. But the DoD has not assessed whether using these contracts has actually kept costs and schedules in line.

GAO recommended that the DoD assess its use of these contracts.

Over the 10-year period from fiscal years 2010 through 2019, obligations on FPI contracts for major defense acquisition programs (MDAPs) grew to account for almost half of the $65 billion in obligations for fiscal year 2019.

Keep reading this article at: https://www.hstoday.us/federal-pages/government-reports-and-summaries/dod-has-increased-their-use-but-should-assess-contributions-to-outcomes/

See GAO’s full report on this topic at: https://www.gao.gov/products/GAO-21-181

Filed Under: Government Contracting News Tagged With: DoD, fixed price, fixed price incentive, FPI, GAO, major programs, MDAP, schedule

January 31, 2018 By AMK

Overview of acquisition-related provisions of NDAA released

The Congressional Research Service (CRS) has released a report providing an overview of acquisition-related provisions found in National Defense Acquisition Acts in the last three fiscal years, FY16-18.
NDAAs during the three year period contained 247 references specifically related to federal acquisition.  This compares to 466 acquisition references in the NDAAs for the preceding 10 fiscal years.
The CRS reports that the specific topics that are a focus of the legislation are:
  • Major Defense Acquisition Programs,
  • the acquisition workforce,
  • commercial items,
  • Other Transaction Authority, and
  • contract types.
The report also discusses one of the more controversial and extensive legislative changes made in recent years affecting acquisition: the breakup of the office of the Under Secretary of Defense for Acquisition, Technology, and Logistics (AT&L), as well as the shift of authority from that office to the military departments.
Read the report at https://fas.org/sgp/crs/natsec/R45068.pdf

Filed Under: Government Contracting News Tagged With: acquisition workforce, AT&L, commercial products, Congressional Research Service, CRS, major programs, OTA, other transaction authority

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