The case studies document also profiles milestone-based competitions, explaining that competition is promoted among astable pool of selected contractors across a series of clear, technically feasible milestones, with paymentwithheld until the associated, agreed-upon milestone is completed.
In this scenario, agencies would establish milestones with well-defined requirements, a deadline, and an assigned monetary value and could be used to attractbusinesses with innovative approaches to well-defined, multi-component problems, according to the document, the document said.
It said milestone-based competitions provide program managers the abilityto attract innovative approaches to well-documented problems, while minimizing cost, risk, and liability, noting that foregoing bulky, long-term deliverables in favor of a series of achievable milestones could also encourage participation from small businesses and high-growth startups.
Link: http://www.whitehouse.gov/sites/default/files/microsites/ostp/innovative_contracting_case_studies_2014_-_august.pdf
