System Effectiveness Incentive Structures. Volume I.
Abstract
The study developed a methodology for use in structuring contractual incentive provisions based on system effectiveness measures. The study discusses incentive formulation and implementation in the context of a Concept Formulation/Contract Definition type of procurement. However, its results are not limited to that environment. The study presents the procedure for developing a hierarchical system effectiveness structure using a unique chain concept to derive a single measure of system effectiveness (System Figure of Merit) from a set of accountable factors. This concept is based on a series of enabling relationships for computing Figures of Merit at various levels in the structure. A procedure is presented for constructing a payoff curve that indicates the appropriate incentive fee for each possible value of the System Figure of Merit. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1970
- Accession Number
- AD0869205
Entities
People
- Arnold F. Klick
- Brownie R. Johnson Jr.
- W. Lauren Clem