Contracting officers: turn off the time and material default switch
| Pages | 269-274 |
| Published date | 01 March 2008 |
| DOI | https://doi.org/10.1108/JOPP-08-02-2008-B004 |
| Date | 01 March 2008 |
| Author | Bernard Piper |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 8, ISSUE 2, 269-274 2008
CONTRACTING OFFICERS: TURN OFF THE TIME AND MATERIAL
DEFAULT SWITCH
Bernard Piper*
ABSTRACT. This article addresses the increased use of time and material
contracts. It explores the reasons and risks of this contract type’s use. Also,
it makes several suggestions to pursue alternate contract types when
appropriate.
INTRODUCTION
Time and material (T&M) contracts are increasingly used as the
contract type of choice in federal contracting. As a contracting officer,
I believe it is important that my colleagues consider the use of this
instrument more carefully by considering the risks and other options
available.
TIME AND MATERIAL CONTRACTS RISING
A recent Government Accountability Office (GAO) report reviewed
the use of time and material contracts by the Department of Defense.
The report stated that obligations under T&M contracts increased
from almost $5 billion in FY 1996 to about $10 billion in FY 2005
with the caveat that that figure was probably even understated (U.S.
Government Accountability Office, 2007). The Federal Procurement
Data System (FPDS) reported obligations for all participating
agencies, including both civilian and defense agencies, over the same
period for T&M and labor hour contracts increased by almost $14
billion. Also, the percent ratio of T&M dollars to all other contract type
obligations indicated a steady increase through the same period,
according to the FPDS database (Federal Procurement Data System,
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* Bernard Piper is the principal contracting officer, Corporate Contracts
Section, Federal Deposit Insurance Corporation.
Copyright © 2008 by PrAcademics Press
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