Contracting for engineering and design services in the environmental restoration field
Smith, Charles S.
Carrick, Paul M.
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This thesis examines and analyzes the nature of work in the environmental restoration field. The analysis was conducted using archival and opinion research to define the unique qualities associated with the engineering and design phases of the environmental restoration process. Based on this analysis, justification for the use of cost-reimbursement contracts for the engineering services used in this field is provided. The moral hazard/incentive issue associated with cost-reimbursement contracts is then analyzed, With the moral hazard issue in mind, Naval Facilities Engineering Command's Comprehensive Long-Term Environmental Action Navy (CLEAN) contract is evaluated. This evaluation looks at how the use of a long-term cost-reimbursement contract, such as CLEAN, provides incentives to overcome the moral hazard problem.
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