An Objective Functional Approach to Structuring Contractual Performance Incentives.
Study project rept.,
DEFENSE SYSTEMS MANAGEMENT SCHOOL FORT BELVOIR VA
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A method of structuring contractual performance incentives is developed in this report. The method derives the incentive structure directly from the modeled Life Cycle Cost LCC. The method is illustrated for a hypothetical tactical surface-to-surface missile system and an example is provided of the methods use, at the component level for a single performance parameter, and incorporation into an actual procurement. The method is analysized with existing Multiple Incentive Contracts Analysis Program MICAP approaches and a discussion provided.
- Administration and Management
- Economics and Cost Analysis