The Incentives Guidebook provides Defense acquisition and procurement personnel (both government and industry) with a useful framework to effectively structure contractual incentives to achieve overall best value as part of a successful business relationship. It also provides insight to some basic methods and tools useful in conducting the business analysis that forms the foundation for sound incentive design. The Guidebook can be applied throughout the life cycle of Defense programs for both products and services.
The fundamental premise of the Guidebook is the recognition that mutual commitment, by both industry and government, is required to create a cooperative atmosphere for information exchange. Information exchange feeds the joint development of the acquisition (procurement) business case, through which both government and industry articulate their motivations, goals, barriers, and enablers. Once the relationship has been established and the business case clearly understood, incentives can be structured to motivate mutually desired behaviors and outcomes.
The Guidebook is divided into five sections, and relies on Internet links to detailed resources, references, and tools. The intent is to provide the reader with a fundamental framework and appreciation of the methodologies and tools required and available for use in structuring incentives.