Innovative government contracting

Abstract

Historically, the United States Federal Government has been conservative in its contracting practices. These practices are codified in law by the "Federal Acquisition Regulations (FAR)". In some cases, past practices have not adequately met the need to better address value-to-cost, to shorten procurement times and to operate more adaptively in response to rapidly changing technology and social demands. Until recently, the US Government has continued the status quo (such as "firm fixed price") rather than to assume the risks associated with change. Innovative contracting techniques were developed more in foreign countries than in the United States. The last decade, however, has seen a turn about as the US Government has engaged more innovation in procurements. This report examines innovative contracting techniques utilized by both Federal and State activities: Construction and Services by the Naval Facilities Engineering Command (NAVFAC); Construction by State Departments of Transportation (DOT's); and Space Systems Development by the National Aeronautics and Space Administration (NASA)