Contract Risk Assessment(CRA)
A process for identifying and evaluating potential risks in a contract or procurement action to inform mitigation strategies.
Overview
Contract Risk Assessment (CRA) is a structured process agencies and contractors use to identify, evaluate, and prioritize risks associated with a procurement action. The assessment considers technical complexity, cost uncertainty, schedule pressure, vendor capability, and regulatory compliance to produce a risk profile that guides decision-making.
Why It Matters in GovCon
Understanding the risk landscape of a contract helps both the government and offerors price work appropriately and allocate resources where failures are most likely. Contractors who demonstrate mature risk management processes in their proposals often score higher on evaluation criteria and build stronger agency relationships.
Key Details
- Risk Categories: Common categories include technical, schedule, cost, programmatic, and supply chain risk.
- Risk Matrix: Risks are typically rated on a probability-impact matrix (low, moderate, high).
- Mitigation Plans: Each identified risk should have an associated mitigation strategy with clear ownership.
- Continuous Process: CRA is not a one-time event—it should be revisited throughout contract performance.
- FAR Reference: FAR Part 7.105 requires risk considerations in acquisition plans.
Related Terms
- Acquisition Plan
- Earned Value Management (EVM)
- Performance Work Statement (PWS)
- Quality Assurance Surveillance Plan (QASP)
More Contracts Terms
A simplified method of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified vendors.
A numbered item in a contract that identifies a specific deliverable, service, or unit of work along with its quantity and price.
A contract type where the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit.
An order placed against an existing contract for the delivery of supplies or materials.
A contract type where the price is set at award and does not change regardless of the contractor's actual costs, placing maximum risk on the contractor.
Long-term government-wide contracts with commercial firms that provide federal agencies access to products and services at pre-negotiated prices.
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