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News/Protests & Claims/The Firm Fixed Price Profits Reduction Clause: Government Takes All the Benefits and None of the Risk?
Expert Opinion·Protests & Claims Brief

The Firm Fixed Price Profits Reduction Clause: Government Takes All the Benefits and None of the Risk?

In some firm-fixed price contracts, a “profits reductions clause” allows agencies to prohibit cost overruns while simultaneously requiring contractors to reimburse any underruns.

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