[lemma=□]
[lemma="fixed-price"]
In his research , Tadelis has studied the benefits of both fixed-price contracts and cost-plus contracts , which require payment for time and materials and a small profit above that amount . They may pay based on a fixed-price budget or reasonable cost , require potential contractors to compete on price , or pay a fee for each enrollee . " Somewhere along the line , the contractors began to see that they had made a gigantic mistake in taking on the program under a fixed-price contract , which the Navy had imposed in an effort to get a grip on weapons costs . The contracts require the multiple award ESCO 's to provide all labor , materials , engineering design and financing to implement energy conservation measures for their agency customers , and then guarantee that these improvements will result in a specified level of annual costs savings , In return , the ESCO 's receive a firm fixed-price payment from the guaranteed costs savings achieved . Centralized versus decentralized logistics ; restructuring of Taiwanese Air Force logistics support ; current Air Force Logistics Command ( AFLC ) activities ; organic software capability ; fixed-price contracting ; need for more people who understand industrial side of logistics .