Abstract for: Understanding the Dynamics of Fixed-price Programs- A Case Study Illustration and Generalization

This paper reports results of a study conducted to rescue a fixed-price program. The program was of strategic importance for the client as well as the vendor. The program was large and complex and was first of its kind to both client and vendor in terms of complexity and experience. The program was failing on all major fronts and existing operating models were unable to cope with it. Authors took systems approach to investigate and design solution to improve the state of the program. Problems facing the program were identified and As-Is state of the program was constructed. A system dynamics model was constructed and simulated with a set of policies to reach the desired state (To-Be state) and derive at a set of recommendations and design principles for the fixed-price class of programs. This study has endeavored to transcend this particular program in order to be useful for other programs in general.