Defense Contractors May Receive Kudos Instead of Cash

The Pentagon is getting ready to start the “Superior Supplier Incentive Program.”  This program is designed to recognize government contractors who score high in the Defense Department’s performance-tracking system.  The supplier recognition program is intended to promote competition.  The Program was mandated by the Under Secretary of Defense for Acquisition, Technology and Logistics, Ashton Carter.  Carter and Defense Secretary Robert M. Gates last year first unveiled this departmental effort, dubbed the “better buying power initiative.”

The Washington Post reported quoted Carter as having said that the Defense Department is making these changes in hopes of driving down the cost of government procurement programs.

Carter announced that the practice of contractors receiving part of any savings achieved during the contract “may not make the cut,” which could deincentivize cost savings.  The new “Superior Supplier Incentive Program” is meant to take the place of those cost-savings sharing mechanisms and provide other recognition for good government supplier practices.

GovCon Executive described this as “an Angie’s List for defense contractors. While preferred-vendor status won’t guarantee a contract, it’s as good as a friend’s recommendation for an architect. And even better, if awarded a contract, preferred-vendor status may lead to a heftier payday.”

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About Jason Dickstein
Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. He represents several aviation trade associations, including the Aviation Suppliers Association, the Aircraft Electronics Association, the Aircraft Fleet Recycling Association and the Modification and Replacement Parts Association.

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