Some managers support using firm fixed price contract vehicles.
Some managers suggested that the use of firm fixed price contracts were more useful in limiting the risk to the agency and keeping projects within budget and on time than cost plus contracting mechanisms. However, cost plus and firm fixed price contracting vehicles both have their place depending on the uncertainties and complexities involved. By developing a pilot uncertainty was reduced and now both the vendor and the program office are more confident of the technology and the next steps that should be taken to optimize the operation of the system. By reducing uncertainty, a firm fixed price contract becomes more appropriate for later phases of the project. With the knowledge gained to date, the risk to the vendor of entering a firm fixed price contract is much less than in the beginning of the project.