Department of Transportation

Stop Spiral Development Contracting

Spiral Development Contracting is killing the agency. We have come to expect cost overruns. Why do we allow them? We write a contract, companies bid, and the low bidder wins. Then, we let them charge double, triple what they bid they would perform the contract for. That's crazy. If a company bids $1B and says they can do the contract for that amount, then that's it. If they fail to perform...how about they pay the money back? Instead, we reward contractual non-compliance with yet MORE money. Contractors like Raytheon, Lockheed Martin, etc. are laughing all the way to the bank. It has got to stop!

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Idea No. 6887