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How can a fixed-price contract contain "incentives" on its PRS?


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I am the OP. I have never heard of a "deduct schedule." The incentive/disincentive method in a PRS is the ONLY way I have ever seen things done. I have seen things done at DOD and various civilian agencies including DHS. This is all new to me and the folks in my office.

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Guest Vern Edwards

Using the language in your Post #3, I just Googled "performance requirements summary deduct".

Try it. The first nine hits would have given you all the info you needed to understand what you saw in that PRS, assuming you applied a little noggin juice.

An incentive is something you use in a contract to motivate contractors to provide better-than-required performance. The disincentive in an FFP contract is termination for default and all that that implies.

I'll bet that office of yours is chock full of Level IIIs.

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