FPIS Guidance

No new information, just some advice: Don't use an FPI(S) contract if you have to ask for information about how to do it, especially for a "large and complex" acquisition. You'll get post traumatic stress syndrome. So will everybody else on the program.

You've been warned.

Hi,

I am working on a large and complex requirement that may include Fixed Price Incentive Successive Target CLINS. Has there been additional guidance published on this contract type since the 1986 Armed Services Pricing Manual? Does anyone have information about (design, post award admin, best practices, etc) or know any experts on FPIS contracting?

Thanks!

Does this happen to involve an "Early Contractor Involvement" or similar contract with USACE?

I agree with Vern.

No one should be allowed to go near an incentive contract until he or she has read this:

Kennedy, John J., Incentives and Cost Growth (1985), available at http://www.dtic.mil/cgi-bin/GetTRDoc?AD=AD...oc=GetTRDoc.pdf.

Prof. Kennedy, of Notre Dame, conducted the last comprehensive study of government incentive contracts. It was done for the Air Force. 400+ pages. It is not a how-to, but an assessment of the effectiveness of formula incentive contracts like FPI(F), FPI(S), and CPIF.

Hi,

I am working on a large and complex requirement that may include Fixed Price Incentive Successive Target CLINS. Has there been additional guidance published on this contract type since the 1986 Armed Services Pricing Manual? Does anyone have information about (design, post award admin, best practices, etc) or know any experts on FPIS contracting?

Thanks!

Are you still interested in an answer? I asked for a reason: " Does this happen to involve an "Early Contractor Involvement" or similar contract with USACE?" There is some training on these type contracts available.

Yes, heck yes, there is a lot more to FPI contracting than is contained in the ASPM, especially one with successive targets. It takes a lot of project control expertise in cost management, schedule management, cost reimbursement type administration, and in general earned value management to actively manage (vs. just being along for the ride and being stuck with the resulting performance and cost).

I don't guarantee that the available training is adequate (haven't attended or read the course material) but it would be essential for those becoming involved in the ECI method being used on certain

USACE projects.