Survey and Annotated Bibliography on Literature Pertaining to Internal Financial Incentives in System Acquisition.
WHARTON SCHOOL OF FINANCE AND COMMERCE PHILADELPHIA PA DEPT OF DECISION SCIENCES
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This document is essentially a literature survey and it is motivated by on-going research on internal financial incentives in systems acquisition. The purpose of this research is to determine financial and non-financial consequences of internal incentives used in the acquisition of weapons systems. The research addresses itself only to the use of incentive systems within DOD i.e., internal incentive systems, and not to contractual i.e., external incentive systems that operate between the Government and private contractors. Our basic approach is to study such incentives by considering the impact of various budgetary constraints over groups of projects at various levels in the Defense hierarchy and at various stages of the system acquisition process. A particular focus of attention is Design-to-Cost as an internal financial incentive.
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- Economics and Cost Analysis