Deliberating a contract-type based risk mitigation strategy for South African Defense Acquisitions
Mkhaliphi, Thomas M.
Mortlock, Robert F.
MetadataShow full item record
This project explores the possibility of applying a contract-type based strategy to manage acquisition program costs and schedule risks for the South African (SA) Department of Defense (DOD). The hypothesis proposes a strategy that consists of the wide variety of contract types for use within the acquisition process. The emphasis is on the application of incentive fees and award fees. The study analyzed three past programs and one current program from the SA DOD to establish a rationale for considering the application of the incentives and award fee for contract types as a risk mitigation plan. An analysis of three similar U.S. DOD programs that also implemented incentives and award fees based on contract type indicated that from a risk management perspective, the application of contract type is not inconsequential but the risks are manageable. In order to facilitate the application of this strategy, we find it is necessary to adapt regulations such as Preferential Procurement Policy Framework Act (PPPFA) and Public Financial Management Act (PFMA) and directive documents such as A-PRAC-1034. Further recommendation indicates that Earned Value Management (EVM) should be considered by the SA DOD to tie deviations between technical, cost and schedule performance.
RightsCopyright is reserved by the copyright owner.
Showing items related by title, author, creator and subject.
Forman, Marcus R.; Wear, John M. (Monterey, California. Naval Postgraduate School, 2012-06);Prediction markets are speculative markets created for aggregating relevant information on some measurable future event. Simply put, prediction markets ask participants to trade ideas as stocks. The “market price” of a ...
Analysis of performance characteristics of the Naval Postgraduate School MWR-05XP Mobile Weather Radar Knorr, Jeffrey B. (Monterey, California. Naval Postgraduate School, 2005); NPS-EC-05-005In 1998, the Naval Postgraduate School (NPS) Center for Interdisciplinary Remotely Piloted Aircraft Studies (CIRPAS) and the NPS Department of Electrical and Computer Engineering (ECE Dept.) collaborated on the acquisition ...
Cantrell, Kim S. (Monterey, California. Naval Postgraduate School, 2006-06);The Federal Government's preference for the acquisition of commercial items was placed into law under Public Law 103-355, Federal Acquisition Streamlining Act of 1994. Acquisition policies were established that more closely ...