All sorts of interesting issues come up when the government gets into cost based contracts. Here are some scenarios for you to consider. Put your risk management hats on and for one of the following scenarios, tell me what issues are involved and what the contracting officer or the contractor should be concerned about and why. You might also suggest some ways to reduce the risks you have identified.

You are a project manager in the Department of the Interior's Mineral Management Services (MMS). You are reviewing the report of your support contractor about the disaster recovery plans for a number of oil drilling rigs in the Gulf of Mexico. The report says that these plans meet all federal requirements. Being somewhat cynical and just a bit paranoid, you wonder why there isn't something that needs to be corrected on at least one plan and so you browse through a couple of the plans. Toward the end of the reports, you see that one of the authors of both plans was also one of the authors of the report to MMS. In addition to the plans providing for the protection of the Gulf of Mexico walrus population, what is wrong with this situation? What should you do before the reporters from 60 Minutes show up with their cameras?