Incentive Srategies for Defence Acquisitions Guide - DAU Guidebooks Available at no Cost to Government Employees - Defense Acquisition University - Brief Article

Program Manager, Jan, 2002

Author: Stefan Markowski

Author: Tony Kausal

Printed on behalf of the Office of the Deputy Under Secretary of Defense for Acquisition Initiatives by the Defense Acquisition University Press

Incentives should exist in every business arrangement because they maximize value for all parties. DoD needs to adopt strategies that attract, motivate, and reward contractors to encourage successful performance. Using commercial practices will enhance DoD's ability to attract nontraditional contractors. This guide amplifies existing policy regarding use of incentives in defense acquisitions. It explores cost-based and noncost-based incentive strategies. It clearly defines use of performance objectives or product functionality vs. detailed requirements to seek best value acquisitions. It answers these questions:

* Why are we concerned with contractual incentives?

* What elements contribute to an effective incentive strategy?

* How can we build and maintain an effective environment for a successful business relationship?

* How can we build the acquisition business case?

* How can we build an incentive strategy that maximizes value?

Online

Available soon on the DAU Home Page at www.dau.mil/pubs.> Printed Copy

To request a printed copy of Incentive Strategies for Defense Acquisitions (April 2001), choose one of three options: 1) Fax a written request to the DAU Publications Distribution Center at (703) 805-3726; 2) mail your request to Defense Acquisition University Attn: AS-CI, 9820 Belvoir Road, Suite 3, Fort Belvoir VA 22060-5565; or 3) e-mail jeff.turner@dau.mil.