Navy Proposes Incentive Program for Contractors

Under a new pilot program the Navy proposed on August 9, the department wishes to offer incentives to its best contractors.

The Superior Supplier Incentive Program would offer fewer audits or more favorable progress payments to companies who have excelled, according to a Fierce Government article.

“It’s an interesting idea,” said Roger Jordan, PSC’s vice president of government relations.

“For those that feel like they could achieve the Superior Supplier approval, they would probably be more interested than maybe some smaller companies who think that it’s going to put them at a competitive disadvantage,” he added.

Jordan also said the success of the program is dependent on the incentives used by the Navy.

In a Federal Register notice, the Navy asked which incentives would provide the most incentive for contractors.

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Jaime Gracia

How is this different that performance based contracting? Why is the Navy creating a program that already exists, especially Performance Based Logistics (PBL)?

The focus should be on performance, and not fewer audits. DCAA is having enough problems as it is, but lowering audits is not a good idea as taxpayers should always have protections.