Effectiveness of Award Fee Provisions in DARCOM Contracts.

Abstract

The Cost Plus Award Fee contract (CPAF) is an appealing concept because it allows procurement managers to use judgement in rewarding performance. It has recently been alleged, however, that a high and relatively constant percentage of the award fee is always paid. If this is true, the effectiveness of CPAF contracts relative to other types is in doubt. Objectives of the study are: (1) Establish current level of award fee payments within Army contracts. (2) Investigate procedures to determine what award fee to pay. (3) Accumulate evidence indicating the motivational effectiveness of cost-plus-award-fee contracts. (4). Evaluate current guidance for the use of CPAF contracts. (5) Recommend change in use or guidance, if appropriate. Inferences toward the objectives were drawn from analyses of award fee payment level, the relationship of award fee payment to various other variables (e.g., fixed fee base), time and command trends, and qualitative assessments.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1977
Accession Number
ADA036074

Entities

People

  • Shirley H. Carter

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Analysis Of Variance
  • Contractors
  • Contracts
  • Cost Effectiveness
  • Data Analysis
  • Data Mining
  • Data Science
  • Databases
  • Governments
  • Growth Factors
  • Information Science
  • Knowledge Management
  • Normal Distribution
  • Procurement
  • Regression Analysis
  • Statistical Analysis
  • Statistical Inference

Readers

  • Government Contracting/Procurement.
  • Theoretical Analysis.

Technology Areas

  • AI & ML