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Accession Number:

AD1157145

Title:

Defense Acquisitions: DOD Has Paid Billions in Award and Incentive Fees Regardless of Acquisition Outcomes

Author(s):

• Calvaresi-Barr, Ann M.

Author Organization(s):

• United States Government Accountability Office

Report Date:

2005-12-19

Abstract:

The power of monetary incentives to motivate excellent contractor performance and improve acquisition outcomes is diluted by the way DOD structures and implements incentives. While there were two examples in our sample in which the Missile Defense Agency attempted to link award fees directly to desired acquisition outcomes, such as demonstrating a capability within an established schedule, award fees are generally not linked to acquisition outcomes. As a result, DOD has paid out an estimated $8 billion in award fees to date on the contracts in our study population, regardless of outcomes.

Document Type:

Conference:

Journal:

Pages:

55

File Size:

0.93MB

Contracts:

Grants:

Descriptors:

Identifiers:

• Awards
• Contract performance
• Contractor payments
• Pay for performance
• Performance measures
• Policy evaluation
• Incentive fees
• Performance-based contracting

SubjectCategory:

• Behavioral and Social Sciences

Communities of Interest:

• Weapons Technologies

Distribution Statement:

Approved For Public Release

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