The acquisition of commercial items is generally mandated under firm-fixed-price or fixed-price with economic price adjustment contracts due to their ability to provide price stability and predictability. Firm-fixed-price contracts establish a set price for the goods or services being procured, which encourages suppliers to manage costs efficiently and deliver within the agreed price. This aligns well with the commercial marketplace, where competitive pricing is common.
Additionally, fixed-price contracts with economic price adjustments allow for the inclusion of contingencies related to inflation or other economic shifts, making them a flexible choice while still maintaining a price cap. These contract types support efficient procurement processes and incentivize vendors to control costs, which is particularly beneficial when acquiring standardized commercial goods that can be sourced from multiple suppliers.
In contrast, the other contract types such as cost-plus-fixed-fee, time and materials, and cost reimbursement contracts typically involve more complex billing and cost structures that are more suitable for situations where costs are uncertain or where the scope of work cannot be definitively determined upfront. These are generally not mandated for the acquisition of commercial items, as they do not provide the same level of price certainty and efficiency that firm-fixed-price contracts offer.