Analyzing the Presidential Directive on Government Contracting

Description the Presidential Directive on Government Contracting found in link above. Answer the following questions: Why does the President want to reduce Cost-reimbursement contracts? Why is it preferred to use a Firm Fixed type contract? Who accepts the greatest risk under each type of contract? Why is competition favored over sole source? Share on Facebook Tweet Follow us Sample Answer   Analyzing the Presidential Directive on Government Contracting In the Presidential Directive on Government Contracting, found on the official website of the Obama White House archives, several key points are addressed regarding the practices and preferences in government contracting. This directive aims to enhance efficiency, reduce costs, and promote transparency in government procurement processes. Let’s delve into the specifics of why the President advocates reducing cost-reimbursement contracts, preferring Firm Fixed type contracts, determining risk allocation, and emphasizing competition over sole source procurement. 1. Reduction of Cost-Reimbursement Contracts The President’s initiative to reduce cost-reimbursement contracts stems from the inherent risks and potential for cost escalation associated with these contract types. Cost-reimbursement contracts allow contractors to be reimbursed for all legitimate costs incurred during the performance of the contract, plus a fee usually based on a percentage of the costs. This structure can lead to a lack of cost control and incentivize contractors to spend more to maximize their profits. By shifting away from cost-reimbursement contracts, the government aims to mitigate financial risks and ensure taxpayer dollars are spent efficiently. 2. Preference for Firm Fixed Type Contracts Firm Fixed type contracts are favored for their predictability and cost control mechanisms. In a Firm Fixed contract, the price is set at the outset, providing a clear and stable financial framework for both the government and the contractor. This type of contract places the onus on the contractor to deliver the agreed-upon goods or services within the specified budget, promoting accountability and adherence to project timelines. The fixed nature of these contracts helps in avoiding cost overruns and ensures that the government receives value for money. 3. Risk Allocation under Different Contract Types Under cost-reimbursement contracts, the government typically bears the greatest risk. Since contractors are reimbursed for their costs regardless of project outcomes, any budget overruns or performance issues ultimately fall on the government’s shoulders. On the other hand, Firm Fixed type contracts shift a significant portion of the risk to the contractor. If unforeseen circumstances arise that increase costs or delay delivery, it is the contractor’s responsibility to address these challenges without additional compensation, incentivizing them to manage risks effectively. 4. Emphasis on Competition over Sole Source Procurement Competition in government contracting is essential to promote fairness, transparency, and efficiency. By encouraging competition through open solicitations and competitive bidding processes, the government can drive down costs, spur innovation, and ensure that the best-qualified vendors are selected for each project. Sole source procurement, where a contract is awarded without competitive bids, limits transparency and may result in higher prices and reduced value for taxpayers. Therefore, the preference for competition over sole source procurement aligns with the principles of accountability and effectiveness in government spending. In conclusion, the Presidential Directive on Government Contracting underscores the importance of strategic procurement practices that prioritize cost-effectiveness, risk management, and competition. By reducing reliance on cost-reimbursement contracts, opting for Firm Fixed type agreements, allocating risks judiciously, and favoring competitive processes, the government aims to optimize its procurement outcomes and uphold integrity in its contracting activities. This question has been answered. Get Answer


Best Custom Essay Writing Services

Looking for unparalleled custom paper writing services? Our team of experienced professionals at is here to provide you with top-notch assistance that caters to your unique needs.

We understand the importance of producing original, high-quality papers that reflect your personal voice and meet the rigorous standards of academia. That’s why we assure you that our work is completely plagiarism-free—we craft bespoke solutions tailored exclusively for you.

Why Choose

  • Our papers are 100% original, custom-written from scratch.
  • We’re here to support you around the clock, any day of the year.
  • You’ll find our prices competitive and reasonable.
  • We handle papers across all subjects, regardless of urgency or difficulty.
  • Need a paper urgently? We can deliver within 6 hours!
  • Relax with our on-time delivery commitment.
  • We offer money-back and privacy guarantees to ensure your satisfaction and confidentiality.
  • Benefit from unlimited amendments upon request to get the paper you envisioned.
  • We pledge our dedication to meeting your expectations and achieving the grade you deserve.

Our Process: Getting started with us is as simple as can be. Here’s how to do it:

  • Click on the “Place Your Order” tab at the top or the “Order Now” button at the bottom. You’ll be directed to our order form.
  • Provide the specifics of your paper in the “PAPER DETAILS” section.
  • Select your academic level, the deadline, and the required number of pages.
  • Click on “CREATE ACCOUNT & SIGN IN” to provide your registration details, then “PROCEED TO CHECKOUT.”
  • Follow the simple payment instructions and soon, our writers will be hard at work on your paper. is dedicated to expediting the writing process without compromising on quality. Our roster of writers boasts individuals with advanced degrees—Masters and PhDs—in a myriad of disciplines, ensuring that no matter the complexity or field of your assignment, we have the expertise to tackle it with finesse. Our quick turnover doesn’t mean rushed work; it means efficiency and priority handling, ensuring your deadlines are met with the excellence your academics demand.

ORDER NOW and experience the difference with, where excellence meets timely delivery.