Accession Number : ADP002756

Title :   Designing the Equitable Risk Contract,


Personal Author(s) : Williams,R. F.

Report Date : 1983

Pagination or Media Count : 5

Abstract : Department of Defense contracting faces such great uncertainty that contracts must be designed to share the resultant risk. This paper describes the steps for this risk-sharing: assessing sources of uncertainty and their probability of impact, assessing the impact of their uncertainties on both contractual partners' objectives, combining these impacts for total risk to the objectives, prioritizing the parties objectives, arraying the 2 sets of prioritized risk in order to equate them, and selecting the proper contractual devices to bring on this equity. The paper also suggests what research might be done on (1) assessing the impact of uncertainties on contractual objectives, (2) developing operations research models to optimize risk sharing, (3) the impact of contractual devices on objectives, and (4) the design of experiments to effect this research (Author)

Descriptors :   *Government procurement, *Contract administration, *Management planning and control, *Risk, Decision making, Operations research, Models, Operational effectiveness, Strategy, Contracts, Management, Planning, Resource management, Symposia

Distribution Statement : APPROVED FOR PUBLIC RELEASE