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An Analysis Of Profit Margin In Relation To The Better Buying Power Initiative, Jerry (Trey) L. Baker Iii
An Analysis Of Profit Margin In Relation To The Better Buying Power Initiative, Jerry (Trey) L. Baker Iii
Theses and Dissertations
Recent Better Buying Power (BBP) initiatives have sought to better contractually align contractor profit with performance. Profit should incentivize efficiency in cost and schedule and only be awarded when earned. The current research seeks evidence that BBP has been effective in improving performance. The first part of the research examines the trends of profit margin and cost growth both before and after the implementation of the first BBP initiative. BBP recommended the use of incentive type contracts over award fee contracts, where appropriate. This research found an increased use of incentive type contracts and a reduced use of award fee …