The debate over the use of cost-plus contracts instead of fixed-price contracts to drive down costs is a "red herring," the Defense Department has found during its second annual acquisition system performance review. "Of particular note, this year's report shows that the prevalent debate of cost-type versus fixed-price contracting is misguided," Frank Kendall, the Pentagon's chief acquisition executive, writes in the June 13 report. "The real issue is how effective the incentives are for each contract type within each of...
