Pub K
The Fixed Price Push Is Really a Scope Discipline Problem
Courtney Holbrook – On April 30, 2026, President Trump signed Executive Order 14402, “Promoting Efficiency, Accountability, and Performance in Federal Contracting,” directing agencies to make fixed-price contracting the default and preferred method of procurement. The order requires written justification for non-fixed-price contracts and encourages agencies to review existing cost-reimbursement and time-and-materials contracts to transition to fixed-price models. But the conversation around fixed-price contracting often focuses on risk transfer when the more critical issue may be scope discipline.