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Guidance on Using Incentive and Other Contract Types (04/01/2016)

Reference:  DPAP Memo, (04/01/2016)

Summary:  This memorandum issues "Guidance on Using Incentive and Other Contract Types" developed as an element of the Under Secretary of Defense for Acquisition, Technology and Logistics (USD (ATamp;L)) Better Buying Power 3.0 - Achieving Dominant Capabilities through Technical Excellence and Innovation initiative.  The analysis behind the 2014 Annual Report on the Performance of the Defense Acquisition System, published by the USD (ATamp;L)) on June 13, 2014, demonstrated that the use of cost-plus-incentive-fee and fixed-price-incentive Firm Target  contracts was highly correlated with programs that achieved better cost and schedule performance outcomes.  This guidance addresses, in a comprehensive way, the considerations our contracting and acquisition professionals should take into account when selecting and negotiating the most appropriate contract type for a given requirement.  Further details can be found within the memorandum.

POC: 703-614-9641

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