Cost-plus-award-fee contracts.

Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Cost-plus-award-fee contracts. 16.405-2 Section 16.405-2 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Incentive Contracts 16.405–2 Cost-plus-award-fee contracts. A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (1) a base amount fixed at inception of the contract, if applicable and at the discretion of the contracting officer, and (2) an award amount that the contractor may earn in whole or in part during performance and that is sufficient to provide motivation for excellence in the areas of cost, schedule, and technical performance. See 16.401(e) for the requirements relative to utilizing this contract type. [74 FR 52859, Oct. 14, 2009]