A contractor officer is wavering between issuing a cost plus and fixed price contract for the design and installation of modifications to a weapon system. There appears to be adequate competition for this contract, and about 80% of the scope of work has been performed by at least 5 contractors. A firm fixed price contract would not entice enough competitors, yet a cost reimbursement contract is not being encouraged by the head of contracting activity. What would be the best contract and what would be the share ratio to negotiate? Provide a rationale for the share ratio?

(Provide references)