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Fixed price can control costs, while uncertain work may require flexibility. What should drive the choice?
Accepted answerMatch the contract type to how well the outcome, scope, dependencies, acceptance, duration, and cost risk can be defined. Separate predictable deliverables from uncertain discovery or change work when practical, set ceilings and decision points where risk remains, and avoid transferring risk the vendor cannot control. The choice should motivate the required result and support administration. FAR Part 16 describes federal contract types and risk allocation.
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