Incentive contracts are designed to help the Government acquire goods and services at a lower cost or with improved delivery or technical performance. These contracts provide the opportunity for creativity in crafting incentives and also great peril if the incentives aren’t perfectly aligned with the Government’s intent.

In this episode Kevin and Paul explain the basic types of incentives and provide examples of how they can help both the Government and Industry if used wisely. But look out….the law of unintended consequences can be devastating if the delicate balance of cost, schedule, and performance is not considered with every incentive.