MIL-HDBK-965
APPENDIX B
INCENTIVES (GUIDANCE TO THE AA)
B.1 GENERAL. The goal of incentives is to encourage, promote, and reward innovative efforts that are effective. Incentives work best when they reward the contractor and the employees involved in the process. Incentive programs should flow down from the prime contractors to their parts management professionals and to subcontractors and their parts management functions.
B.2 FORMS OF INCENTIVES. a. Monetary.
b. Reduced oversight and control.
c. Reduced level of parts management option (e.g., allow going from option D to option C). d. Positive considerations during proposal review and selection process.
e. Nonmonetary awards (plaques, recognition, letters of commendation).
f. Allowing proposed innovative parts management techniques to be implemented on programs and adopted when proven effective.
g. Allowing subcontractors to submit part requests directly to the MPCAG through MPCASS. h. Contractor initiated incentives to their parts management professionals.
B.3 ITEMS WORTHY OF INCENTIVES. a. Cost avoidance.
b. Reduced work hour requirement over the life of a program.
c. Innovative, effective solutions to parts managem ent problems. d. Effective subcontractor management.
e. Automation of internal parts management functions. f. Empower internal parts management process.
g. Record of exemplary past performance.
h. Efficient training process for contractor personnel and subcontractors.
i. Enhanced performance, reliability, or quality at no increase in total life-cycle cost.
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