Discussion 2 Week 7 Award Fee Contracts Assignment

Discussion 2 Week 7 Award tiptoe Contracts - Assignment Example2. Discuss whether contractors provide better work with an award fee. Include in your tidings on whether or not they are incentivized by the better profit potential of an award-fee contract. Support your station with an example.One strongly believes that contractors provide better work with an award fee. As defined, an award fee is an gist of money that a contractor may earn in whole or in helping by meeting or exceeding subjective criteria stated in an award fee scheme (US Government Accountability Office, 2009, p. 1). It is a form of motivation or incentive that contractors could avail for exceeding expectations or exhibiting exemplary performance. For instance, a contractor is supposed to complete a painting of a government construct in two weeks time using total costs of materials amounting to $50,000. If the contactor is able to complete the project in one weeks time and with savings amounting to $5,000, then, the contractor could be given an award fee. The supplying would enable the contractor to gain a positive image, in addition to the award fee and would be considered a plus factor for future contracting projects.US Government Accountability Office. (2009, August 3). 1. From the e-Activity, hash out whether or not the agencies mentioned took any actions that reflected the suggestions provided by the Office of Management and Budget. If you think actions were taken, state what actions were taken and apologise why those act. Retrieved from gao.gov