Award Term Incentive Contracting
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This research explored implementing a best commercial practice of establishing strategic purchasing relationships within the Department of Defense (DOD) procurement environment. The research was sparked by Air Force Material Command's (AFMC) instituting a commercial style acquisition strategy using an award term incentive on several programs. The award term incentive provides for extensions or reductions to the term of the contract based on contractors' level of performance. Forthcoming implementation of Air Force FAR supplement 5317.7X, Incentive Term Extension, will likely increase the numbe...
This research explored implementing a best commercial practice of establishing strategic purchasing relationships within the Department of Defense (DOD) procurement environment. The research was sparked by Air Force Material Command's (AFMC) instituting a commercial style acquisition strategy using an award term incentive on several programs. The award term incentive provides for extensions or reductions to the term of the contract based on contractors' level of performance. Forthcoming implementation of Air Force FAR supplement 5317.7X, Incentive Term Extension, will likely increase the number of acquisitions using an award term incentive. Research findings indicate that management should consider expanding the AFMC award term guidance to include the model developed from this research, which identifies decision criteria for selecting the award term incentive strategic purchasing method. Findings indicate that the acquisition professionals may not have the expertise or related purchasing skills necessary to establish strategic purchasing relationships for commercial type performance based services and that training is needed. The researcher also uncovered evidence that instability and reductions in the DOD workforce affects acquisition professionals' ability to maintain currency with the changing legal environment. Further, workforce instability and reductions may influence the implementation of strategic contractual relationships. The research concludes that implementing the award term incentive affects the DOD competitive market. This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.
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