In response to Nixon’s focus on the United States’ submarine capabilities, the Navy declared that they could assemble a Trident submarine just as quickly as building a Polaris. These bold claims introduced additional pressure on the people behind the Trident program, as the estimated build time had now been reduced. The updated time frame also shifted the discussion to the type of contract the Navy would use when dealing with contractors on the Trident. Instead of designing the contract to distribute risk equally and promote easy management, the Navy now needed a contract that would guarantee delivery of the first submarine within six years and would include strict controls over the project. The contract discussion quickly turned into a debate between the supporters for cost-reimbursement and fixed price contracts.
A fixed price contract holds the contractor responsible for delivering a product that meets all of the performance specifications for an agreed price. A cost-reimbursement contract means that a contractor attempts to meet the customer’s performance, time, and cost requirements and will be reimbursed for