The overall research objective of this thesis effort was to develop a general model depicting the major design parameters for a gainsharing system. This model was then validated and specified for a government, Research, Development, Test and Evaluation (RDT&E) facility. Companies interested in gainsharing will be able to use the general model as a base to begin building their own individualized system. Government, RDT&E facilities will be able to integrate the specific issues that were identified into the development of a gainsharing system to suit their incentive needs. An extensive review of the literature was conducted and a great deal has been learned about gainsharing and related areas. Many case examples were studied to understand how different organizations have approached gainsharing. A great deal of information was gathered on how government, RDT&E organizations function and the many policies and restrictions they have to operate within. This enabled a general gainsharing model to be developed. A rigorous research methodology, including interviews and surveys, was used to validate the general model and identify specification issues. Representatives from organizations with extensive gainsharing experience and gainsharing experts provided input to validate the general model. The Naval Air Warfare Center Aircraft Division, Trenton (NAWCADTRN) was used as a prototype organization to specify the general model for a government, RDT&E facility. Finally, interviews with NAWCADTRN managers and customers and an organization-wide survey of employees helped to identify gainsharing issues that are specific to their organization. / Master of Science