What type of contract is designed to motivate contractor's efforts?

An incentive contract is specifically designed to encourage heightened contractor performance by linking their compensation to various performance objectives. This type of contract sets forth financial incentives based on the contractor's ability to meet or exceed defined milestones, cost savings, or delivery timelines.

By including incentives, the government or organization can align the contractor's goals with its own needs, leading to increased efficiency and responsiveness. This motivates the contractor to optimize their efforts and resources to achieve the best possible outcomes, thereby benefiting both parties involved in the contract.

The other types of contracts listed, such as concessionaire, individual service, and non-personal service, do not inherently include performance-based rewards that specifically motivate contractors. Instead, they serve different purposes, such as providing specific services or allowing the use of government property, without the same emphasis on incentivizing contractor performance.