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Pentagon Failing to Assess Effectiveness of Incentive Contracts Each Year

CC0 / / The Pentagon, headquarters of the U.S. Department of Defense
The Pentagon, headquarters of the U.S. Department of Defense - Sputnik International
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The Department of Defense fails to consistently collect data on the results of incentive contracts worth more than $50 million it issues each year so it cannot assess if they improve contractor performance, the Government Accountability Office (GAO) said in a report.

WASHINGTON (Sputnik) — The GAO’s review of current Defense Department systems found that they provided some useful data but did not allow the department to determine how well incentives are achieving desired cost, schedule, and performance outcomes, the report added.

"DOD [Department of Defense] does not consistently collect data on the outcomes of these incentive contracts — so DOD can't determine if they are improving contractor performance," the report said on Tuesday.

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In 2015, the Defense Department stopped its previous effort to manually collect data twice a year on incentives valued at more than $50 million, which was burdensome and collected information that the department did not use, officials told the GAO.

However, "Without such information, DOD may be disadvantaged in establishing incentive arrangements that achieve intended results, the report warned.

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