Award Term Incentive: How it Might be Implemented at U.S. Naval Procurement Activities.

摘要

In this day of acquisition reform, Government contracting officers are continually urged to 'think out of the box' for ways to deliver better contracting products and services to customers. Award term incentive, a variation of the award fee incentive described in FAR 16.405-2, was first used in Government contracting in 1997. It has been used in those situations where a long-term business relationship is seen as being advantageous to both the contractor and the Government. The purpose of this thesis is to evaluate the critical issues associated with establishing strategic long-term purchasing relationships between U.S. Naval procurement activities and their suppliers through the use of the award term incentive. The thesis considers the elements of the award term incentive in order to identify the barriers to successfully implementing this best commercial practice. The methodology employed to gather data was a survey distributed to Navy contracting activities. The survey data was analyzed to identify the key issues of effectively utilizing the award term incentive. The thesis concludes with recommendations for implementing the use of award term at Naval procurement activities.