Use of the Award Fee in Air Force System and Subsystem Acquisition
STATE UNIV OF NEW YORK AT BUFFALO SCHOOL OF MANAGEMENT
Pagination or Media Count:
This study had three objectives to clarify the conceptual basis of award fee contracting methods to describe empirically their application in Air Force Systems Command AFSC programs and to identify lessons which could be learned about the award fee method from these applications. From previous research and existing literature, a theory of the award fee approach to acquisition was formulated which presents it as a distinctive management tool for planning and controlling performance in contracted system acquisition. Fifteen applications of the award fee contracting method in the AFSC were selected as cases from which to derive empirical descriptions of patterns of award fee application. These were analyzed for their consistency with award fee theory. Interviews with government and contractor personnel explored their experiences with the award fee and their judgments about it. Thus, an input evaluation of the award fee approach to acquisition was accomplished to provide a basis for identifying policy and technical recommendations for its more effective future use, and for identifying award fee-related research needs.
- Logistics, Military Facilities and Supplies