An Objective Functional Approach to Structuring Contractual Performance Incentives.

Abstract

A method of structuring contractual performance incentives is developed in this report. The method derives the incentive structure directly from the modeled Life Cycle Cost (LCC). The method is illustrated for a hypothetical tactical surface-to-surface missile system and an example is provided of the methods use, at the component level for a single performance parameter, and incorporation into an actual procurement. The method is analysized with existing Multiple Incentive Contracts Analysis Program (MICAP) approaches and a discussion provided.

Document Details

Document Type
Technical Report
Publication Date
Nov 01, 1975
Accession Number
ADA028487

Entities

People

  • Paul Edward Pirtle

Organizations

  • Defense Systems Management College

Tags

DTIC Thesaurus Topics

  • Contracts
  • Costs
  • Cycles
  • Incentive Contracts
  • Life Cycle Costs
  • Life Cycles
  • Motivation
  • Procurement

Readers

  • Computational Modeling and Simulation
  • Life Cycle Cost Analysis