Accession Number : AD0733380

Title :   An Analysis of Incentive Contracts with Respect to Risk.

Descriptive Note : Master's thesis,

Corporate Author : ARMY COMMAND AND GENERAL STAFF COLL FORT LEAVENWORTH KANS

Personal Author(s) : Jones,Julius E.

Report Date : 1971

Pagination or Media Count : 76

Abstract : The study discusses incentive contracts and cost overruns as related to industrial risk categories. The various aspects of risk considered by the Department of Defense have had contract modifications as a common factor reflecting risk. Based on the average percentage of contract modifications, industrial commodity categories are rated in terms of risk. Statistical tests were performed to analyze the tendency of incentive contracts, grouped by commodity categories, to over or underrun target costs. A conclusion is reached on high risk commodity categories in relation to target costs. Methods of reducing risk are discussed.

Descriptors :   (*DEPARTMENT OF DEFENSE, CONTRACTS), (*COSTS, STATISTICAL ANALYSIS), MATHEMATICAL PREDICTION, MANAGEMENT ENGINEERING, INDUSTRIAL RELATIONS, MOTIVATION, PROBABILITY, THESES

Subject Categories : Administration and Management

Distribution Statement : APPROVED FOR PUBLIC RELEASE