Impacts of transitioning from firm fixed price to fixed price incentive firm target contracts in PEO Missiles and Space
Makowski, Suzanne E.
Ricketts, Brandi M.
Tidwell, Shannon M.
Pickar, Charles K.
Naegle, Brad R.
MetadataShow full item record
The objective of this project is to analyze the impacts to major weapon systems programs in Program Executive Office (PEO) Missiles and Space as a result of transitioning from firm fixed price (FFP) contracts to fixed price incentive firm target (FPIF) contracts. This project presents an in-depth examination of FFP and FPIF contract types, including definitions, profit mechanisms, and advantages and disadvantages associated with each type. This project reviews three iterations of Better Buying Power, with a specific focus on profitability and the use of FPIF contracts. The project presents and analyzes data collected through interviews with PEO Missiles and Space program management and contracting personnel who support programs that have transitioned from FFP to FPIF. The project also examines defense industry profitability and considers the perspective of defense contractors regarding Department of Defense profit policy. The analysis results indicate that the PEO is appropriately applying guidance for choosing FPIF contracts in follow-on production, and that there are both benefits and challenges associated with FPIF contracts. Recommendations include continuing to assess FPIF use for production programs, obtaining actual cost data, and improving incentive contracting workforce training. Further research on the longer-term effects of transitioning to FPIF is recommended.
RightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
Showing items related by title, author, creator and subject.
The Department of Defense's transition of program of record (POR) systems from Internet Protocol Version Four (IPV4) to Internet Protocol Version Six (IPV6) Perkins, Kyle L.; Scott, Michael A. (Monterey, California. Naval Postgraduate School, 2006-12);The objective of this Joint Applied Project was to examine the technical, financial, and implementation aspects for DoD transitioning POR systems to IPv6. The research outlines the initial intended useful life and ...
Perfect Storm: analyzing strategic issues confronting program executive office, missiles and space Anderson, Joseph S.; Warnick, David A. (Monterey, California. Naval Postgraduate School, 2007); NPS-AM-07-042This MBA Project analyzed the following four strategic issues surrounding Program Executive Office Missiles and Space: the implementation of Program Budget Decision 753, the deterioration of the matrix support structure, ...
“Perfect Storm” : Analyzing Strategic Issues Confronting Program Executive Office, Missiles and Space Anderson, Joseph; Warnick, David (2007-03-01); NPS-AM-07-042This MBA Project analyzed the following four strategic issues surrounding Program Executive Office Missiles and Space: the implementation of Program Budget Decision 753, the deterioration of the matrix support structure, ...