Posted: February 7th, 2016

Use of Incentive Contracts

Can you please help me with the following questions.

1. Is it possible or even appropriate to ever combine the two types of incentive contracts such that both incentive and award fees may be earned on the same contract?

2. What sort of objective measurements might be applied?

3. What sort of objective disincentives (penalties) might be applied?

4. What are the concerns about the use of disincentives?

5. As a business advisor to your customer, what guidance might you give them regarding the use of an incentive contract when procuring a complex, high profile requirement where those requirements may not be clearly known?