Trump Order Pushes Fixed-Price Contracts in Federal Agencies (1)

President Donald Trump ordered federal agencies to make fixed-price agreements the default vehicle for government purchasing, shifting away from cost-reimbursement contracts that he said can lead to runaway spending.

The executive order signed Thursday gives agencies 90 days to renegotiate existing contracts while the Federal Acquisition Regulatory Council drafts an overhaul of procurement regulations. In the meantime, the order encourages agencies to use exceptions called deviations to give themselves more flexibility.

But the order also provides more leeway for agencies with the biggest contracts. For most departments, it requires political leadership to sign off on non-fixed-price contracts over $10 million. ...