Stimulus law requires fixed-price contracts

There will be lots of government IT contracts stemming from the massive stimulus package approved by Congress and signed by President Obama, but they will have to be fixed-price deals as much as possible and not subject to last-minute adjustments.

This requirement placed in the stimulus law is part of an effort to prevent abuse and escalating costs, reports FCW.

The exact language of the law reads, "To the maximum extent possible, contracts funded under this act shall be awarded as fixed-price contracts through the use of competitive procedures. A summary of any contract awarded with such funds that is not fixed-price and not awarded using competitive procedures shall be posted in a special section of the website established in section 1526.''

Some are upset by this provision, feeling it will limit contracting officers from entering into contracts that may more appropriately suit the circumstances. Some contractors, obviously, are not happy about the provision. But with growing concerns about cost overruns and contracting abuses, such arguments held little sway among lawmakers.
 
For more on this requirement:
- see this FCW.com article