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Experience With These Incentive Arrangements


bob7947

Experience With These Incentive Arrangements  

22 members have voted

  1. 1. Which type of incentive arrangement would you be able to work on today with confidence?

    • Fixed-price incentive.
      9
    • Fixed-price award.
      13
    • Cost-plus-incentive.
      7
    • Cost-plus-award.
      12
    • None of the above.
      4


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Incentive arrangements can be quite tricky and a novice negotiator dealing with an experienced negotiator will quickly learn that fact.  You can use these arrangements to affect performance, price or cost--or some combination of these.  Both government or non-government representatives need to understand how these arrangements work before they dare use them.

Every now and then, someone in power wants these incentive arrangements to be used more often.  Unfortunately, these people in power cannot distinguish a firm-fixed-price contract from a cost-plus-award contract.  So, it is left to the contracting types to make them work--or not.

My simple question is:  Which type of incentive arrangement would you be able to work on today with confidence?  The question is multiple choice and your display name will not be shown with your answer.

If I missed an incentive arrangement that you currently use, let me know.  I will add it to the poll.

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Bob, I'm puzzle somewhat about the math algorithm . It seems to calculate percentage of total selections rather than percentage of respondents. Am I wrong about that? If you are counting total selections made, then it would seem that you should limit respondents to one choice only. 

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Joel:

The members here vary from very experienced to training level employees and they are employed by government and non-government employers.  Some members have nothing to do with federal contracts. I want all members to have an opportunity to respond to the poll and the question I asked allows that as much as I could hope.  It is showing percentages by total number selected.

I wanted to know which generally recognized incentive arrangements were the members comfortable working with immediately.  Some picked all four, others picked less because they were only comfortable with three or less.. I didn't want to know which single arrangement they were most comfortable working with immediately.

With the question I asked, we presently see the two "award" fee arrangements are the most popular.  To reach that conclusion, we need to either add the numbers or the percent for the two. I am surprised that the fixed-price award arrangement is more popular at this moment than the cost-plus-award arrangement.

Since there are relatively few responses, it is still easy to see which individual arrangement is the most selected by respondent.  For example, currently there are 14 responses but only 4 have marked the cost-plus incentive which shows that it was selected by just under 29 percent of respondents. 

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Bob,

I think it's important to also ask what incentive arrangements members have experience with as well to try and determine one reason why members may be more comfortable with some arrangements over others.  If it is because they have experience awarding/administering contracts with those incentive arrangements we might have a case of the tail wagging the dog.

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