104 What are Performance Incentives?

If you work in the Government acquisition world, this podcast is for you. (not just for Contracting Officers!)This episode is brought to you by PROPRICER(TM), the #1 proposal pricing and cost analysis software used by federal agencies and small to large government contractors. PROPRICER’s Government Edition will simplify the Government’s cost analysis process and save time and effort. Visit www.PROPRICER.com\podcast to learn more or request a demonstration. ____________FAR Part 16.401 describes incentive contracts. Incentives fall into 3 general categories: cost, performance, and schedule. Kevin and Paul discuss performance incentives (FAR 16.402-2) and provide an overview of how performance incentives are structured. Learn why it is critical to clearly communicate what performance is important and how that performance will be measured and assessed. Remember that the law of unintended consequences can wreak havoc on any incentive contract! Know what you’re really incentivizing. Be sure to understand the additional costs involved in managing incentives.__________Kevin Jans and Paul Schauer created the Contracting Officer Podcast to help Government and Industry acquisition professionals understand more about how the other side thinks. Admittedly, the podcast’s name sounds very limiting. It is not just for contracting officers or even just for those in the contracting profession. Anyone with an interest in the Federal acquisition world can benefit from the insight and down-to-earth explanations of complicated topics provided by the hosts.