Tag Archives: Progress Payments

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Something for Nothing–“Cash Flow” as a Contract Incentive


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Authors: John Pritchard and John Krieger

During our combined 70 years in acquisitions, we often have wondered why the government believes it needs to devote additional resources for incentives to achieve a benefit. The government actually has complete control over one of the strongest contract incentives possible—cash flow. Most important, in our fiscally constrained, sequestration-challenged environment, this incentive wouldn’t require additional resources: It uses funds already budgeted or obligated. Unfortunately, we haven’t really tried to exploit it as we should. So let’s get to it.

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