INNOVATION IN CONTRACTUAL INCENTIVES THIS IS A SURVEY ONLY. THIS IS NOT A SOLICITATION FOR PROPOSALS OR INVITATION FOR BIDS. The Procurement Initiatives Directorate, Office of the Deputy Assistant Secretary of the Army (Procurement), is conducting a study to examine innovative ways to develop and implement contractual incentives. The Department of Defense (DoD) and the Army are changing the traditional control mechanisms used to ensure reasonable prices, on-time delivery, product quality and superior performance. Industry and Government are successfully streamlining the acquisition process through legislation and policy changes aimed at compressing cycle times, reducing program costs, leveraging commercially available technologies and practices, and shifting from Government oversight to placing more responsibility on the contractor through risk management procedures. To achieve these "better, quicker, cheaper" goals efficiently, to benefit from the pace of commercial technology advancement, and to gain access to the innovation that high-technology companies offer, the Army must adopt many of the mechanisms and processes successful in the commercial marketplace. We are soliciting suggestions, comments, success stories, etc. in an effort to develop a new range of innovative and meaningful contractual incentives that can be employed to ensure timely delivery of the highest quality goods and services at the best value to the Army. Specifically, the Army is looking at the application of contractual incentives to reduce the total cost of ownership for weapon systems and equipment, examining evolving areas of acquisition streamlining, and expanding the list of factors to consider in developing contractual incentives. The responses to this announcement will be provided to a focus group of senior industry and government leaders who will perform a critical examination of the data. Background information on this study can be found at http://www.acqnet.sarda.army.mil/library/study/default.htm. Submit information no later than 30 days after date of thisannouncement to Ken MacFarlane, ATTN: SAAL-PI, 5109 Leesburg Pike, Suite 916, Falls Church, VA 22041-3201, or email macfarlk@sarda.army.mil. Information copies should also be sent to William S. Kaplan, SAIC, 1710 Goodridge Drive, P.O. Box 1303, McLean, VA 22102 or email William.S.Kaplan@cpmx.saic.com (SAIC has signed a non-disclosure statement for this study). WEB: click here to view a copy of Innovation in Conractual, http://www.acqnet.sarda.army.mil/library/study/default.htm. E-MAIL: click here to contact the POC for this action, macfarlk@sarda.army.mil. Posted 05/20/99 (W-SN333926).

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