Institutional Framework of Federal Acquisitions
Government agencies rely heavy on contracting officers to obtain goods and services at fair prices and in a timely manner. This is possible with the billions of dollars tax dollars entrusted to them annually. Evidently, it is necessary for purchasing agencies along with the Government Accountability Office (GAO) and the Federal Acquisition Regulation (FAR) to create accountability in organizations and continue to improve weaknesses in key areas of federal acquisition (Cameron, 2000).
Importance of fixed price contracts in creating effective, efficient, and accountable acquisition planning
Fixed price contracts refers to contracts that do not need further discussions and engagement in fixing the prices of commodities to be acquired or transferred by an organization. In this contract, a negotiable amount is agreed upon no matter the expenses incurred by the contractor. Fixed price contracts reduce cases of fraud and manipulation of the prices of goods and services under transfer by the Federal Acquisition Regulation agencies. Agencies fix their prices in order to reduce cases of fraud, mistrust, and enable an agreeable pricing of transport and communication costs between the contractor and the government....
Institutional Framework of Federal Acquisitions The fixed price contract is a vital element in creating effective, efficient, and accountable acquisition planning. Fixed pricing is typically used when the product or service being purchased is fairly easy to determine a fair market value. For example, a fixed price contract might be used to purchase office equipment because the price structure isn't subject to much fluctuation. It also is efficient because it cuts
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