Core Courses

• None

Elective Courses

• None

Mandatory

Suggested

Introduction to Incentive Contracting

• Basic Principles of Incentive Contracting
• Selection of Contract Types
• Elements of Basic Incentive Contract Types
• Relationships of Incentive Contracting and Pricing Policies

Incentive Contract Negotiation

• Advance Planning
• Request For Proposals
• Estimates and Objectives
• Proposal Analysis
• Selection of Contract Types in Research and Development
• Prenegotiation Objectives
• Preaward Profit Objectives
• Special Clauses
• Trade-Offs in Negotiation
• Documentation

Cost Incentives

• Fixed-Price-Incentive—Cost Only
• Cost-Plus-Incentive-Fee—Cost Only
• Range of Incentive Effectiveness
• Graphics—Fixed-Price-Incentive—Cost Only
• Graphics—Cost-Plus-Incentive-Fee—Cost-Only
• Broken Share Lines
• Broken Share Lines—Multiple Incentives
• Exercises
• Exercise: Point of Total Assumption
• Exercise: Share Ratio
• Exercise: Final Price and Profit
• Exercise: Range of Incentive Effectiveness
• Exercise: High and Low Cost Estimates
• Exercise: Contractor's Fee
• Exercise: Fixed-Price-Incentive-Fee
• Exercise: Cost-Plus-Incentive-Fee
• Exercise: Target Cost v. Most Probable Cost to Perform

Multiple Incentive Contracts

• Overview
• Target Cost
• Multiple Incentive Structuring
• Performance Structuring (Steps I through IV)
• Cost-Plus-Incentive-Fee—Multiple Incentives
• Cost-Performance Structure (Steps V-VII)
• Conclusion (Seven Steps—Multiple Incentive Structuring)
• Fixed Price Multiple Incentives
• Incentive Measurements and Payment
• Effect of Fixed Overhead on Incentive Sharing Arrangements
• Exercise: Whirly-Bird Manufacturing

Schedule Incentives

• Cost-Plus-Incentive-Fee
• Fixed-Price-Incentive
• Exercise: Fee Dollar Value

Contract Changes

• Cost Incentive Changes
• Multiple Incentive Changes
• Exercise: Fixed-Priced Incentive Work

Award-Fee and Award-Term Contracts

• Award-Fee Contracts
• Award-Term Contracting
• Exercise: Withholding Base Fee
• Exercise: Reducing Award Fee
• Exercise: Termination for Convenience and Award Fee
• Exercise: Contract Modifications and Award Fee