Accession Number : ADP002776

Title :   Award Fee Contract Provisions as a Program Management Tool,


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

Report Date : 1983

Pagination or Media Count : 7

Abstract : Award fee contract provisions can be used as a program management tool. Award fee contracts have been found to be a cost effective means of encouraging contractors to surpass the specifications of the contract. Award fee contracting can be successfully used in the dynamic environment of R and D programs as well as full scale development programs. Award fee contracting relies on other forms of motivation than just the profit motive. The frequent evaluations used in award fee contracting give the contractor (including its managers and employees) timely feedback on its performance. These evaluations implicitly tell the contractor what the government's priorities are. This evaluation process also enables the government to better define its requirements. It serves as a motivation tool in that the managers will strive to make the evaluation look as good as possible. Timely and high level government involvement have been found to be important in the success of award fee contracting. (Author)

Descriptors :   *Government procurement, *Incentive contracts, *Contract administration, Management planning and control, Motivation, Contracts, Production, Productivity, Cost estimates, Cost effectiveness, Acquisition, Management, Strategy, Symposia

Distribution Statement : APPROVED FOR PUBLIC RELEASE