Earlier quoted context omitted.
Firm fixed contracts seem like the way to go, until you try it. What happens is you get a bunch of contractors in a bidding war trying to undercut each other until the actual bid is below cost. That's not sustainable so what happens then? The winner will cut every possible corner to try to make a profit margin and read the contract in the narrowest way possible so they can hit the government with a fat change order.…
Those things have legal remedies, the US legal system has just decided that the investor class should be absolved of any risk or liability. If you intentionally underbid to win a contract, you've committed fraud and are supposed to go to prison to disincentivize the next guy. If you are a contractor and are incapable of giving a good faith estimate of your costs, you're supposed to go out of business. If you cut a bu…
How would you measure and enforce this?