Government contracting options
Subtitle: a model and application
By: Edward G. Keating.
Contributors: Rand Corporation.; Project Air Force (U.S.); United States. Air Force.
Publisher: Rand
Published: 1996
Place of publication: Santa Monica, CA
Language: eng
Number of pages: 50
Subjects: United States. Air Force -- Equipment -- Maintenance and repair.; Defense contracts -- United States.
Description: Contractors represent a sizable and potentially growing portion of the Air Force's repair system. This report asks the question, How should the Air Force design its repair contracts to ensure high-quality, responsive repair? By developing an economic model of contractor motivations and behavior and simulating how contractors would respond to different types of contracts, the report aims to derive the government's optimal repair contract. The simulation suggests that a contract combining a sizable lump-sum payment with cost-sharing for required expensive spares can be a desirable approach. The contractor should be required to maintain a specified weapon system availability role. Such a contract assumes the contractor has fairly detailed information about the weapon system. These contracts are probably most appropriate for mature weapon systems with predictable usage patterns.
Notes: Includes bibliographical references (p. 49-50).
"Project Air Force."
"Prepared for the United States Air Force."
"MR-693-AF"--Cover.