Solutions for Pursuing Test Strategies that Address the Realities of Firm-Fixed-Price Contracts - Ap
應用說明
In defense contracting, firm-fixed-price (FFP) contracts are becoming more common than cost-plus contracts. This fundamental shift in the business model begs an essential question: How can organizations evolve to compete successfully in an FFP world? Compared to cost-plus, FFP transfers much of the risk from the government to the prime contractor. To mitigate these risks, contractors may want to reassess their assumptions and look for opportunities to streamline or redesign their processes. The math is simple: profit equals price minus cost. When the price is fixed, greater attention must be paid to any and all costs that whittle away at the resulting profit. It may come as a surprise, but test equipment is often the third-most expensive capital investment across the life cycle of a system. To reduce the cost of test, two high-leverage action steps are available: pursue greater reuse of test assets across multiple products and product lines, and implement new strategies for test-asset acquisition. This note presents context for the shift to FFP, suggests a few important implications, and offers recommendations for effective reuse and acquisition of test assets.