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

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.

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Document Details

Document Type
Technical Report
Publication Date
Dec 19, 2005
Accession Number
AD1157145

Entities

People

  • Ann M. Calvaresi-barr

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Materials and Manufacturing Processes
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accountability
  • Acquisition
  • Best Practices
  • Congress
  • Contractors
  • Contracts
  • Electronic Mail
  • Fixed Price Contracts
  • Governments
  • Motivation
  • National Governments
  • Procurement
  • Test And Evaluation
  • United States Government
  • Weapon Systems
  • Weapons
  • Websites

Readers

  • Defense Acquisition Program Management
  • Government Contracting/Procurement.