Federal Acquisition Regulation
Cost-plus-award-fee contracts
FAR 16.305
A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (a)a base amount (which may be zero) fixed at inception of the contract and (b)an award amount, based upon a judgmental evaluation by the Government, sufficient to provide motivation for excellence in contract performance. cost-plus-award-fee contracts are covered in subpart Incentive Contracts (FAR 16.4) , Incentive Contracts. See General (FAR 16.401) (e) for a more complete description and discussion of the application of these contracts. See 16.301-3 and General (FAR 16.401) (e)(5) for limitations.
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