Cover: Government Contracting Options

Government Contracting Options

A Model and Application

Published 1996

by Edward G. Keating


Download eBook for Free

FormatFile SizeNotes
PDF file 2.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 Format Price
Add to Cart Paperback65 pages $9.00

Contractors represent a sizable and potentially growing portion of the Air Force's repair system. This report asks the question, How should the Air Force design its repair contracts to ensure high-quality, responsive repair? By developing an economic model of contractor motivations and behavior and simulating how contractors would respond to different types of contracts, the report aims to derive the government's optimal repair contract. The simulation suggests that a contract combining a sizable lump-sum payment with cost-sharing for required expensive spares can be a desirable approach. The contractor should be required to maintain a specified weapon system availability role. Such a contract assumes the contractor has fairly detailed information about the weapon system. These contracts are probably most appropriate for mature weapon systems with predictable usage patterns.

Research conducted by

This report is part of the RAND monograph report series. The monograph/report was a product of RAND from 1993 to 2003. RAND monograph/reports presented major research findings that addressed the challenges facing the public and private sectors. They included executive summaries, technical documentation, and synthesis pieces.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.