The Transformation of Contract Incentive Structures
Abstract
The National Polar-orbiting Operational Environmental Satellite Systems Acquisition and Operations contract for the next generation of weather satellites uses innovative incentive structures to motivate contractor performance. The incentive approach combines an award fee and mission success fee arrangement to include a cost mitigation approach putting fee at risk and tying corporate executive pay to contract performance. This business approach is complemented by a shared ownership approach to the development and production of the satellites. These innovative approaches give the government the flexibility to share system responsibility while motivating the contractor toward outstanding performance on the contract.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2003
- Accession Number
- ADA423525
Entities
People
- Robert M Graham
Organizations
- Defense Acquisition University