Fixed-price contracting is not new. But the pressure around fixed-price and performance-based contracting is changing fast.

In this episode of The GovCon Show, we break down what contractors need to understand before they agree to convert, restructure, renegotiate, or accept more fixed-price risk.

The central point is simple: fixed-price is not just a contract type. It is a risk transfer.

For contractors accustomed to cost-reimbursement, T&M, labor-hour, hybrid work, or subcontract environments where travel, materials, ODCs, and extensions were handled as needs arose, the shift to fixed-price can be much more dangerous than it looks. Scope must be clearer. Assumptions must be priced. Customer dependencies must be protected. Periods of performance must be taken seriously. Subcontractor risk must be aligned. Performance metrics must be measurable and tied to things the contractor can control.

This episode is a warning against pricing uncertainty like certainty.

Before contractors say yes to fixed-price, they need to understand what they are actually accepting.

Run the Fixed-Price Conversion Risk Assessment at GovConAdvisoryGroup.com before the risk becomes the contract.