Accession Number:

AD0869205

Title:

System Effectiveness Incentive Structures. Volume I.

Descriptive Note:

Final rept.,

Corporate Author:

CONSULTEC INC ROCKVILLE MD

Report Date:

1970-04-01

Pagination or Media Count:

131.0

Abstract:

The study developed a methodology for use in structuring contractual incentive provisions based on system effectiveness measures. The study discusses incentive formulation and implementation in the context of a Concept FormulationContract Definition type of procurement. However, its results are not limited to that environment. The study presents the procedure for developing a hierarchical system effectiveness structure using a unique chain concept to derive a single measure of system effectiveness System Figure of Merit from a set of accountable factors. This concept is based on a series of enabling relationships for computing Figures of Merit at various levels in the structure. A procedure is presented for constructing a payoff curve that indicates the appropriate incentive fee for each possible value of the System Figure of Merit. Author

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE