Last edited by Dolabar
Sunday, August 2, 2020 | History

1 edition of Incentive contract use in military construction found in the catalog.

Incentive contract use in military construction

Clayton K. S. Chun

Incentive contract use in military construction

by Clayton K. S. Chun

  • 382 Want to read
  • 7 Currently reading

Published by Rand in Santa Monica, CA .
Written in English

    Places:
  • United States.
    • Subjects:
    • United States. Air Force -- Procurement.,
    • Defense contracts -- United States.

    • Edition Notes

      StatementClayton K.S. Chun.
      SeriesRand note ;, N-3555-RGSD, A RAND Graduate School dissertation, Dissertation (Rand Graduate School)
      Classifications
      LC ClassificationsUG1123 .C49 1993
      The Physical Object
      Paginationx, 186 p. :
      Number of Pages186
      ID Numbers
      Open LibraryOL1514816M
      LC Control Number93199202
      OCLC/WorldCa28289288

      warrant contracting on a fixed-price basis. When these conditions exist, the use of a cost-reimbursement contract may be appropriate. Conversely, when uncertainties have been reduced to a manageable level, a fixed-price contract generally is used. However, key controls to ensure the appropriate use of cost-reimbursement contracts are not.   Incentive contracts take many forms and we do not believe there is an absolute rule for all types of contracts. For example, a firm fixed price contract may be awarded with a reward-only provision for early delivery of the items or services. A Federal agency could use a fixed-price contract with an award fee provision (see FAR §).

      The builder "wants them off the books." Since most builders are not building "spec" homes in this market, they are usually a result of a "failed contract" meaning the original buyer couldn't get. DoD Guides & Handbooks The DoD Guides and Handbooks listed below are a collection of the most frequently ones used in acquisitions. Acquisitions Architecting Auditing CBA Contracts Cost Estimating DoDAF EVMS Financial Management Glossary Human System Integration Information Security Information Continue Reading→.

      Open%Book%Contract%Management;%Guidance% %% % % % % % % OBCM%guidance%final%0%% OFFICIAL% page%1% % % % % % Open%Book%Contract%Management%Guidance%. incentive contract: Fixed price or cost reimbursement contract in which a target cost, price, or fee (profit) is used as a point of departure for various monetary-incentives (subject to a maximum amount). After completion of the contract, the incentive payment is computed on the basis of the contractor's actual cost plus a sliding scale of.


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Incentive contract use in military construction by Clayton K. S. Chun Download PDF EPUB FB2

Additional Physical Format: Online version: Chun, Clayton K.S. Incentive contract use in military construction. Santa Monica, CA: Rand, (OCoLC) This dissertation explores the replacement of the firm fixed price contract with the fixed price incentive (FPI) contract for the Air Force's military construction program.

The study uses a simulation based on an optimal contract scheme developed by R. Preston McAfee and John McMillan. Title: Incentive Contract Use in Military Construction Author: Clayton K.

Chun Subject: This dissertation explores the replacement of the firm fixed price contract with the fixed price incentive (FPI) contract for the Air Force's military construction program. 4 Background This guidance was developed as an element of the Under Secretary of Defense, Acquisition, Technology and Logistics (USD (AT&L)) Better Buying Power (BBP) – Achieving Dominant Capabilities through Technical Excellence and Innovation initiative.

The analysis behind the Annual Report on the Performance of the Defense Acquisition System, published by the USD. been used in incentive contracts in which the defense contractor shares some pro-portion of the contract costs with the gov-ernment.

When a contract includes both cost and performance incentives, it is called a multiple incentive contract. As is seen below, the established policy for the use of performance incentives is derived a particular Cited by: 2. You asked us to review DOD’s use of incentive contracts. This report (1) identifies steps DOD has taken to improve its use of incentive contracts sinceand (2) assesses the extent to which selected DOD incentive contracts achieved desired acquisition outcomes.

An Incentive Contracts (Federal Acquisition Regulation (FAR) Subpart ) is appropriate when a Firm-Fixed-Price (FFP) contract is not appropriate and the required supplies or services can be acquired at lower costs and relating the amount of profit or fee payable under the contract to the contractor’s ive contracts are designed to obtain specific.

See PGI (DFARS/PGI view) for guidance on the use of cost-plus-incentive-fee contracts. Cost-plus-award-fee contracts. (1) Award-fee pool. The award-fee pool is the total available award fee for each evaluation period for the life of the contract.

The contracting officer shall perform an analysis of appropriate fee. Military construction appropriations act restriction. Annual military construction appropriations acts restrict the use of funds appropriated by the acts for payments under cost-plus-fixed-fee contracts (see (c)).

Limitation of cost or funds. Incrementally funded fixed-price contracts. LeaderQuest S Havana St # Centennial, CO Tel: () Fax: () Need help. Contact Support. Connect with LeaderQuest. Facebook. CONTRACT INCENTIVES AND DISINCENTIVES J Fred Schlich [email protected] +1 emergency construction, Defense Access Roads (DAR), and relocatable building programs.

It excludes military family housing (MFH), medical facility funding, DLA and defense-wide military construction programs, non-appropriated fund (NAF) and host nation funded construction programs, operations and maintenance (O&M) funded minor construction, Working.

Military construction (MILCON) is defined in law as “any construction, development, conversion, or extension of any kind carried out with respect to a military installation, whether to satisfy temporary or permanent requirements, or any acquisition of land or construction of a.

Download the Report Purchase a print version Traditional contracting is primarily transactional, rewarding contractors when deliveries are made or certain process milestones are met. Performance-Based Logistic (PBL) contracting seeks to base contractor incentives on ongoing performance measures to achieve reliability and cost savings.

Key to the success of these arrangements are the incentives. Fiscal military construction (Navy) contract funds in the amount of $34, are obligated on this award; of which $13, will expire at the end of the current fiscal year.

Four. Fixed-Price Incentive Contracts. A fixed-price incentive contract is one type of fixed-price contract. With these contracts, parties may use a formula to both adjust profits and establish the final price of the contract. The formula used depends on how the total target cost and the final negotiated cost relate to each other.

A price ceiling. the latter types of incentive, a range of different types of incentive may be used, e.g. monetary incentives such as fixed-price contracts, cost-plus-incentive fees, cost-plus-award-fees, share-in-savings incentives, and non-monetary incentives such as automatic extension of contract term, more frequent payments, letters of appreciation etc.

need to use incentive contracts that motivate contractors to improve project performance and balance risks appropriately wherever possible in theory and practice (BaronLaffont and Martimort ).

Much of the incentive contracting literature suggests that incentive contracts can foster a balance of risk between clients 1 @ Construction clients often use financial incentives to encourage stakeholder motivation and commitment to voluntary higher-order project goals.

Despite the increased use of financial incentives, there is little literature addressing means of optimizing outcomes. Using a casestudy methodology, the examination of a successful Australian construction project demonstrates the features of a.

(a) FAR has established the policy to use a performance-based contracting approach for all services except construction, A&E, services incidental to commodity purchases, and utilities. Use of any other approach has to be justified. Pilot contracts yielded cost savings and increased customer satisfaction.

(b) Improves business results!. Solicitation Provisions and Contract Clauses/Special Contract Requirements. 53 SUBPART Use of Project Labor Agreements on Federal Construction Projects.

This prohibition applies only to contracts funded by a Military Construction Appropriations Act. It seems to me that if you have another kind of contract, and you want to use a "carrot and stick," you should see if you can find an appropriate incentive plan.

Any contract must consider how (and by how much) contracted services incentives are misaligned with those of the government, and how that misalignment may affect strategic outcomes.

The last line of defense for mitigating adverse effects on strategic outcomes are the terms and languages in the contract itself.