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A METHOD FOR SELECTING CONTRACT COST INCENTIVES
RAND CORP SANTA MONICA CA
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Selection of an appropriate sharing rate for cost incentive contracts might save the Federal Government large sums of money each year. Theoretical criteria for making this choice have long been known however, no results have been established because suitable empirical analyses of the problem are lacking. The memorandum considers the empirical evidence necessary for determining appropriate sharing proportions. It shows what data are needed, indicates how they should be used, and proposes a method for collecting them.
APPROVED FOR PUBLIC RELEASE