DOD profit policy Its effectiveness -- the contracting officer's view.

Abstract

The purpose of this thesis was to seek out the opinion of the Procurement Contracting Officers within the Department of Defense as to their perceptions of the effectiveness of DOD's Profit Policy. This was accomplished by means of a questionnaire sent to PCO ' s at 25 major buying commands within DOD. The results of the survey showed that PCO's felt that (1) profit policy was ineffective in incentivizing contractor investment; (2) facilities capital and the productivity reward were having little or no effect on contractor investment; (3) program instability and the impact of socio-economic programs on the contracting process were major contributors to profit policy's ineffectiveness; (4) DOD Profit Policy did not have a high priority in their organizations . Recommendations are made concerning methods for improving profit policy and for additional study.