A Case Study: Award Fees to Improve Quality.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF SYSTEMS AND LOGISTICS
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The Department of Defense uses profit and other motivators to encourage contractors to build quality weapon systems. An Award Fee is one method to implement incentives for contractors by providing additional profit for a subjectively graded goal. This study analyzed two Award Fee contracts which stressed Quality in the subjective grading criteria for the Award Fee. Additionally, key government and contractor personnel associated with the Award Fee were interviewed to determine if a set of standard evaluation areas for quality were possible with future Award Fees. The study indicated that standard evaluation areas were possible, the evaluation period should be started early in the design phase to improve quality, and management must stress and promote quality consciousness throughout the company. Author
- Administration and Management
- Economics and Cost Analysis