Download or read book Incentives In Procurement Contracting written by Jim Leitzel and published by Routledge. This book was released on 2019-08-19 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume presents a nontechnical treatment of issues that arise in procurement contracting, with an emphasis on major weapons systems procurement. Employing the economic theory of agency as their analytical framework, contributors assess the incentives that arise, for both buyers and sellers, in different contractual settings. Procurement contra

Download or read book Incentives in Procurement Contracting written by Taylor & Francis Group and published by . This book was released on 2021-02-19 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Incentives in Government Contracting written by R. Preston McAfee and published by . This book was released on 1988 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Procurement Contracting with Time Incentives written by Patrick Bajari and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In public sector procurement, social welfare often depends on the time taken to complete the contract. A leading example is highway construction, where slow completion times inflict a negative externality on commuters. Recently, highway departments have introduced innovative contracting methods that give contractors explicit time in--centives. We characterize equilibrium bidding and efficient design of these contracts. We then gather a unique data set of highway repair projects awarded by the Minnesota Department of Transportation that includes both innovative and standard contracts. Descriptive analysis shows that for both contract types, contractors respond to the incentives as the theory predicts, both at the bidding stage and after the contract is awarded. Next we build a structural econometric model that endogenizes project completion times, and perform counterfactual policy analysis. Our estimates suggest that switching from standard contracts to designs with socially efficient time incentives would raise commuter surplus relative to the contractor's costs by 19% of the contract value; or in terms of the 2009 Mn/DOT budget, $290 million.

Download or read book Incentive Contracting Guide written by United States. Department of Defense and published by . This book was released on 1969 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Five essays on incentives in procurrent contracting written by Steinar Vagstad and published by . This book was released on 1994 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Uncertainty in Procurement Contracting with Time Incentives written by Wenzheng Gao and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies cost-plus-time (A+B) procurement contracting with time incentives in the highway construction industry. In the presence of construction uncertainty, the contractor's actual completion time may deviate from the bid completion time, and the A+B contract design is not ex-post efficient. Using data from highway procurement contracts in California, we show that an ex-post efficient lane rental contract would reduce the social cost by $41.39 million (43.11 percent) on average. Moreover, the average commuter cost would decrease by $62.06 million (78.96 percent), suggesting a substantial reduction in the construction externality to commuters from lane rental contracts.

Download or read book Using Effective Contractual Incentives to Obtain Superior Contractor Performance written by Timothy B. Venable and published by . This book was released on 2000-12-01 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this thesis is to provide the reader with the ability to analyze the effectiveness of incentives and to document innovative approaches to incentive contracting that can be applied to Cost-Plus-Award-Fee (CPAF) contracts. While a CPAF contract is a vehicle to obtain products or services needed by the Government, it also acts as a management tool for the awarding entity, which focuses on the impact of meeting or exceeding award criteria. The need for improved procurement effectiveness necessitates the exploration of innovative arrangements. Contracting officers must take advantage of reforms and become innovative in their approach to provide best value in programs. More efficient ways of doing business are available and must be capitalized upon. Changes in the regulations have given the contracting officer the freedom to innovate. They must use this new freedom in order to meet DoD's expanding requirements with increasingly limited resources. The use of innovative incentives to contractor performance is beginning a period of renaissance. Numerous Government entities have embraced the use of innovative arrangements in the effort to get goods and services better, faster, and cheaper. The contracting officer must determine which incentives are most effective for a program based upon numerous variables.

Download or read book Defense Procurement Outcomes in the Incentive Contract Environment written by David Leigh Belden and published by . This book was released on 1969 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Procurement Incentives and Bargaining Friction written by John J. Horton and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A transaction cost theory of procurement developed by Bajari and Tadelis (2001) models the buyer's choice of incentive structure as endogenous, with buyers trading off the efficiency of high-powered incentives against the ex post bargaining friction these incentives can create. The source of the bargaining friction is assumed to be asymmetric information between the buyer and seller about the true costs of adapting the project to changed conditions. Using government contract data and an instrument based on contracting-office idiosyncratic variation in preference for various contractual forms, I estimate the effect of a buyer choosing a fixed-price (i.e., high-powered) contract on the probability that the contract will lead to litigation, which proxies for bargaining failure and friction. I find that (a) fixed-price contracts are far more likely to be litigated that cost-plus contracts and (b) the instrumental variables estimate of the effect of choosing a fixed-price structure is almost twice as larges as the biased, OLS estimate. These results are consistent with the main predictions of the Bajari and Tadelis model.

Download or read book The Use of Incentive Contracting in Aircraft Procurement written by Edward G. Redden and published by . This book was released on 1965 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The largest program in the Navy budget is procurement and one of the largest appropriations within this program is aircraft procurement. Because it does represent such a substantial portion of the budget, aircraft procurement is potentially one of the most important areas for improving cost effectiveness in the Navy. One important available instrument for increasing this cost effectiveness, by increasing efficiency in aircraft procurement, is the incentive type contract. The value of the incentive type contract lies in its ability to compensate for the lack of economic market conditions associated with aircraft procurement. The Navy's use of incentive contracts since 1951 and the resultant opinions and actions of the Navy, government legislative agencies, and the aircraft industry are presented. These actions and opinions are discussed and recommendations for more effective employment of contractual incentives are offered. (Author).

Download or read book The Use of Incentive Contracting in Aircraft Procurement written by and published by . This book was released on 1965 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The largest program in the Navy budget is procurement and one of the largest appropriations within this program is aircraft procurement. Because it does represent such a substantial portion of the budget, aircraft procurement is potentially one of the most important areas for improving cost effectiveness in the Navy. One important available instrument for increasing this cost effectiveness, by increasing efficiency in aircraft procurement, is the incentive type contract. The value of the incentive type contract lies in its ability to compensate for the lack of economic market conditions associated with aircraft procurement. The Navy's use of incentive contracts since 1951 and the resultant opinions and actions of the Navy, government legislative agencies, and the aircraft industry are presented. These actions and opinions are discussed and recommendations for more effective employment of contractual incentives are offered. (Author).

Download or read book A Theory of Incentives in Procurement and Regulation written by Jean-Jacques Laffont and published by MIT Press. This book was released on 1993 with total page 746 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on their work in the application of principal-agent theory to questions of regulation, Laffont and Tirole develop a synthetic approach to this field, focusing on the regulation of natural monopolies such as military contractors, utility companies and transportation authorities.

Download or read book Essays on Contract Design and Incentive Provision written by Eva I. Hoppe-Fischer and published by Springer. This book was released on 2019-02-19 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contract theory, which emphasizes the importance of unverifiable actions and private information, has been a highly active field of research in microeconomics in the last decades. This thesis is divided into two parts. Part I consists of three chapters that study contract-theoretic models which are motivated by the classic procurement problem of a principal who wants an agent to deliver a certain good or service. In such models it is typically assumed that decision makers are interested in their own monetary payoffs only. Moreover, they have unlimited cognitive abilities and behave in a perfectly rational way. Yet, in practice people often do not behave this way. While empirical research is very difficult in contract theory, laboratory experiments have recently turned out to be an important source of data. In Part II, three experimental studies are presented that investigate contract-theoretic problems brought up in Part I.

Download or read book Incentives and Adaptation Evidence from Highway Procurement in Minnesota written by and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Procurement Multiple Incentive Contracting Scientific Contracting with Accent on Trade off written by Norman H. Smith and published by . This book was released on 1967 with total page 115 pages. Available in PDF, EPUB and Kindle. Book excerpt: Incentive contracts, those contracts in which the seller is rewarded (or penalized) according to performance achieved, can work to the advantage of the seller or the buyer, to both, or to neither. The report emphasizes the need for a method of analysis of incentive arrangements so that the true relationships between cost and performance and their influence on fee earned may be known in advance of negotiation or signing of a contract. The report is written primarily for management and has little of the technical details. There are many examples with graphs showing the relationship of cost, performance and fee. (Author).

Download or read book An Evaluation of Incentive Contracting in Government Procurement written by Gary LeRoy Whitaker and published by . This book was released on 1970 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: