Industrial Modernization Incentives Program
Definition/Scope: (GAO) The Industrial Modernization Incentive Program (IMIP) was designed to encourage increased contractor investment in efficient production equipment and processes as well as management and other software systems that will result in higher contractor productivity and reduced weapon system acquisition costs. Its two main objectives also include improving product quality, shortening lead time, reducing life cycle costs, and increasing surge and mobilization capabilities. The two primary incentives used are (1) payments based on cost reductions and avoidances, and (2) governmental investment protection guarantees if affected weapon programs are terminated prematurely. It was designed as a way to reduce the cost of weapons systems.
Broader Terms:Army Modernization Strategy
Narrower Terms:acquisition processes
Related Terms:defense acquisition