Implementing the Industrial Modernization Incentives Program.

Abstract

Defense contractors have often been reluctant to make significant investments in modern, more efficient equipment that could lower costs for weapons systems. This reluctance is due to the risk of premature program termination and a pricing policy which can make investment financially unattractive. This report reviews DoD's test of the Industrial Modernization Incentives Program (IMIP), a DoD-wide effort to provide incentives to invest in modern capital equipment by allowing contractors to retain a share of productivity-induced cost savings. Conclusions are drawn with respect to IMIP's objectives and applicability, the need to carefully project financial effects of IMIP agreements, and IMIP's relationship to other acquisition issues.

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Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1986
Accession Number
ADA168867

Entities

People

  • Geneese Gottschalk
  • Paul R. Mcclenon

Organizations

  • LMI

Tags

Communities of Interest

  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Business Administration
  • Capital Investments
  • Contractors
  • Contracts
  • Cost Reductions
  • Costs
  • Engineering
  • Industrial Modernization
  • Investments
  • Logistics
  • Management Personnel
  • Money
  • Procurement
  • Production
  • Productivity

Fields of Study

  • Political science

Readers

  • Government Contracting/Procurement.
  • Systems Analysis and Design