Accession Number:

ADA028487

Title:

An Objective Functional Approach to Structuring Contractual Performance Incentives.

Descriptive Note:

Study project rept.,

Corporate Author:

DEFENSE SYSTEMS MANAGEMENT SCHOOL FORT BELVOIR VA

Personal Author(s):

Report Date:

1975-11-01

Pagination or Media Count:

87.0

Abstract:

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.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE