Contracting for Weapon System Software: The Pricing Arrangement

摘要

Software is a critical cost and performance element of weapon system acquisition. Among other problems, there has been a mismatch between software acquisition and contracts. This study reviews the procurement, acquisition, budget, and software development processes to determine the appropriate pricing arrangement for weapon system software. It concludes that either a cost-plus-fixed-fee or cost-plus-award-fee contract is appropriate for software development. The paper discusses contract types and system life cycle models. Three appendices cover Minuteman Software Modifications, Peacekeeper Program Management Directives, and Minuteman Software Error Analysis.