Contractor Motivation Theory and Applications.
Final rept. Feb 80-Mar 81,
ARMY PROCUREMENT RESEARCH OFFICE FORT LEE VA
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Contractor motivation is extremely important to the Department of Defense DOD because its contracts are critical, there is no alternative to produce in-house, and it is extremely difficult to switch to an alternative source. In spite of this importance, there is little guidance on contractor motivation in DOD acquisition policy and procedure, except for coverage on profit and incentive-fee contracts. There is a need to examine the broader issues of motivation and see if improvements can be made. The study found that contractor motivation is complex and is a function of many contract and noncontract factors beyond profit. The Government should consider motivation as well as capability potential in preaward planning. Government contracting personnel should consider both Government and industry objectives and environments in selecting incentives for a given contract. The contractor motivation process can be modeled in terms of its leading characteristics for use by the Government in contract planning. Unfortunately, contracting personnel do not currently have the resources and flexibility to fully motivate contractors along the lines suggested in the study. Author
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