RISK ALLOCATION AND
MOTIVATION FUNCTIONS OF CONTRACTS IN THE U.S.
The risk allocation and motivation
are two primary functions of contracts as well as the evidentiary,
administrative and payment functions. In
today’s world, managing the acquisition programs is getting harder as products
and systems get more complex along with the rapid technological
developments. Therefore, the acquisition
programs involve more risk than ever and the contractor motivation is the
fundamental strategy to achieve the goals of a successful acquisition
program.
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