The risks and rewards of cost-reimbursement contracts

The government wants to cut support-service contracts by 15 percent in 2012, but federal acquisition officials want to make sure they’re still getting a good deal — and a good product.

One of the ways the General Services Administration is looking to give contractors incentive to continue to do their best is by putting more cost-reimbursement contracts on the table.

Roger Waldron, the president of the Coalition for Government Procurement who previously served in the General Services Administration, joined In Depth with Francis Rose to discuss the pros and cons of cost-reimbursement contracts.

One of the criticisms of such contracts is that risk is almost entirely shifted to the government.

Waldron provided a short history lesson cost-reimbursement contracts and discussed if they have proven successful.

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