The Award Fee Incentive - Management Considerations Regarding Its Application to Research and Development Contracts.

The overall purpose of this study project was to gain an understanding, from a management viewpoint, of the rationale for, and management considerations of, applying the award fee incentive to R and D contracts. The purpose of the study report is to provide information that may be helpful to those with little or no prior knowledge of award fee incentive provisions. Study methods and data sources included the survey of literature on contractor motivation, principles of program management, and the award fee concept to include DSMC library sources, AFIT student research, and DOD publications and correspondence.