Analysis of Incentive Contracts With Respect to Risk

<p>The study discussed incentive contracts and cost overruns as related to industrial risk categories. The various aspects of risk considered by the Department of Defense had contract modifications as a common factor reflecting risk. Based on the average percentage of contract modifications industrial commodity categories were rated in terms of risk. Statistical tests were performed which analyzed the tendency of incentive contracts grouped by commodity categories to over or under run target costs. It was concluded that high risk commodity categories usually overran target costs. Methods of reducing risk were discussed.</p><p>This work has been selected by scholars as being culturally important and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact and remains as true to the original work as possible. Therefore you will see the original copyright references library stamps (as most of these works have been housed in our most important libraries around the world) and other notations in the work.</p><p>This work is in the public domain in the United States of America and possibly other nations. Within the United States you may freely copy and distribute this work as no entity (individual or corporate) has a copyright on the body of the work.</p><p>As a reproduction of a historical artifact this work may contain missing or blurred pages poor pictures errant marks etc. Scholars believe and we concur that this work is important enough to be preserved reproduced and made generally available to the public. We appreciate your support of the preservation process and thank you for being an important part of keeping this knowledge alive and relevant.</p><br>