The US Army has released a solicitation for its new combat vehicle, implementing a fixed-price contract structure for the research phase of the army’s new ground combat vehicle programme.
The fixed-price contract structure means firms cannot pass the increased costs on to the customer and will have to pay the bill if they exceed their contract amount.
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US Army programme manager Colonel Andrew DiMarco said the solicitation was a departure from other army acquisitions, encouraging industries to build an affordable vehicle within their budgets and on schedule.
“I think that industry is going to have to take a little time to consider the ramifications of a fixed-price contract. But I don’t think that it’s beyond its capabilities,” he added.
As per the solicitation, the army plans to pay a unit price of $9m-$10.5m for the finished product, exceeding that of many of its existing vehicles, according to the Washington Post.
BAE vice-president and general manager of the programme Mark Signorelli said that every contractor considering a bid on the program will have to do so very carefully.
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By GlobalDataThe army is planning to acquire a new combat vehicle that is capable of carrying nine soldiers whilst providing sufficient protection from roadside bombs and weapons.
