THE USE OF INCENTIVE CONTRACTING IN AIRCRAFT PROCUREMENT.

Abstract

The largest program in the Navy budget is procurement and one of the largest appropriations within this program is aircraft procurement. Because it does represent such a substantial portion of the budget, aircraft procurement is potentially one of the most important areas for improving cost effectiveness in the Navy. One important available instrument for increasing this cost effectiveness, by increasing efficiency in aircraft procurement, is the incentive type contract. The value of the incentive type contract lies in its ability to compensate for the lack of economic market conditions associated with aircraft procurement. The Navy's use of incentive contracts since 1951 and the resultant opinions and actions of the Navy, government legislative agencies, and the aircraft industry are presented. These actions and opinions are discussed and recommendations for more effective employment of contractual incentives are offered. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1965
Accession Number
AD0475335

Entities

People

  • Edward G. Redden

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Air Platforms

DTIC Thesaurus Topics

  • Acquisition
  • Aircraft Industry
  • Aircrafts
  • Contracts
  • Cost Effectiveness
  • Costs
  • Efficiency
  • Employment
  • Governments
  • Incentive Contracts
  • Motivation
  • Procurement

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis
  • Systems Analysis and Design