Agencies are making concerted efforts to reduce the money spent through high-risk contracts – contracts that are not fixed price or are awarded without receiving more than one bid – so that the government faces no greater financial risk than necessary in its contracting. There are two dimensions of contracting risk. First, there is risk of wasteful spending when agencies pay for expenses as incurred rather than setting a fixed price upfront for the delivery of a completed product or service. Second, there is the risk of overspending if agencies contract without the benefit of competition. President Obama has directed agencies to reduce risk on both of these dimensions in order to ensure that agencies get the best value for each taxpayer dollar.