Accession Number:

AD0618365

Title:

DEFENSE CONTRACTS: AN ANALYSIS OF ADAPTIVE RESPONSE

Descriptive Note:

Corporate Author:

RAND CORP SANTA MONICA CA

Personal Author(s):

Report Date:

1965-06-01

Pagination or Media Count:

71.0

Abstract:

A study is presented of the methods by which the Air Force and other government departments can keep development contract costs within reasonable bounds. The role of task uncertainty in the problem of contract cost control is emphasized, and it is argued that in many situations the adaptive responses of the firm can vitiate the effects of contractual arrangements aimed at reducing costs through profit-sharing incentives. The analysis concludes that one of the most effective ways to strengthen cost controls is to reduce the task uncertainty associated with contract negotiations. An adaptive response model is presented in an appendix.

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE