Are Incentive Contracts the Next Big Thing for DOD Contractors?

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DOD concluded in 2014 there was a correlation between the use of cost-plus-incentive-fee and fixed-price incentive contracts and programs that were completed on-time and within budget (see the 2014 Annual Report on the Performance of the Defense Acquisition System). On April 1, 2016 and in response to the 2014 Annual Report findings, DOD Defense Procurement Policy Division issued a memorandum entitled “Guidance on Using Incentive and Other Contract Types.”

Though the Memorandum discussed the appropriate use of contract types in general, its purpose was to encourage the use of incentive contracts. Whether …read more

Read more here:: Government Contracting


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