I don’t actually completely disagree with you. I think there are some products and services that should absolutely be fixed price, like launching a rocket for the 400th time, but venturing into truly uncharted and groundbreaking R&D can’t just be fixed price.
I think SLS and ML-2 should be closer to the predictable and firm fixed price end of the spectrum. Dragon, Starliner, and lunar landers are somewhere in the middle. Space nuclear plants or something would be on the cost plus side.
Is there some mechanism of hitting a halfway point between a cost plus and a fixed price contract? Is there some way to get some of the benefits of both fixed price and cost plus contracts?
Maybe cost plus with a maximum price that’s well over expected but in the same order of magnitude? That’s the most common contract model I’ve used in software development. Basically, you’ll pay me by the hour up to a maximum.
I don’t actually completely disagree with you. I think there are some products and services that should absolutely be fixed price, like launching a rocket for the 400th time, but venturing into truly uncharted and groundbreaking R&D can’t just be fixed price.
I think SLS and ML-2 should be closer to the predictable and firm fixed price end of the spectrum. Dragon, Starliner, and lunar landers are somewhere in the middle. Space nuclear plants or something would be on the cost plus side.
Is there some mechanism of hitting a halfway point between a cost plus and a fixed price contract? Is there some way to get some of the benefits of both fixed price and cost plus contracts?
Maybe cost plus with a maximum price that’s well over expected but in the same order of magnitude? That’s the most common contract model I’ve used in software development. Basically, you’ll pay me by the hour up to a maximum.