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FPI-Firm Target : PTA above ceiling price — how big a deal, really? I was speaking with a government procurement officer a few months ago, who ‘freaked-out’ at the idea of a PTA above the ceiling price. I’m wondering how big a deal this really is. Granted, the incentive structure is a little concerning, that the seller is in a loss position while still sharing cost over-runs with the buyer… but it does not seem like a completely unacceptable situation to me. For example: imagine you start negotiations with a target cost of $2.5 million and target price of $2.875 million (a mo
