CONTRACTING WITH THE FEDERAL GOVERNMENT Research Paper

CONTRACTING WITH THE FEDERAL GOVERNMENT - Research Paper Example The root beginning of the hybrid contracts was when it was realized that purely generic contracts had their major downsides that led to their inefficiencies. For example the fixed price cost started being too costly owing to the number of uncertainties in the contracts. The birth of hybrid type of contracts was seen when the fixed price contracts were introduced some adjustments. This started with the economic price adjustment where the prices would be varied based on a number of certain contingencies such as the cost of labor. This thus did include some hybridism in the contracts. One of the root causes of the hybrid contract is the dynamic nature of the present day contracts. Most of the current day contracts are not as rigid as the previous days’ contracts. The result, therefore was the need to improve on the various contracts that existed. One of the main advantages is that with hybrid contracts, one is able to enjoy the various advantages gain from different mother type of contract. For example, with the fixed cost, the cost was predetermined in advance even before the contract starts. This means that the contractor takes all the risks associated with the contract. However, when the variable aspect is introduced to the contract, the contractor is shielded of some of those risks. The other advantage of hybrid contracts is with the flexibility associated with the contracts themselves. Most of the hybrid contacts unlike the other specific contracts that are strictly enforced by the law, there is room for flexibility with the hybrid contracts. This flexibility with the hybrid contacts gives it a unique edge over the other static types of contracts where specific specifications must be followed to the letter. Through hybrid contracting, especially with specific governmental contracts also increase the chances of winning a bid. Kate M. Manue l(2010)