Administration
Capping Report: PBGC Contract Type Selection (SR-2024-08), issued July 11, 2024
Our office's past work has shown the importance of determining the best contract type for a particular acquisition while ensuring timely contract awards and compliance with the FAR. Our work has examined the circumstances of two acquisitions where contract type was a core issue. These two reports highlight some of the challenges PBGC has faced regarding contract type selection. While the FAR indicates that Firm-Fixed-Price (FFP) contracts generally are preferable, it provides flexibility to use other contract types if FAR requirements are met. In addition, coordination between the Procurement Department (PD) and departments requesting acquisitions (referred to as program offices) is critical to promote timely contract awards. While this report does not contain additional recommendations, we continue to highlight to PBGC that the correct contract type is dependent on many factors and PD and the program offices have to continue to work as a team to identify the most advantageous contract type based on the goods and services that are required.
