[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR16.305]



[Page 310]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 16_TYPES OF CONTRACTS--Table of Contents

 

                Subpart 16.3_Cost-Reimbursement Contracts

 

Sec. 16.305  Cost-plus-award-fee contracts.



    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 16.4, Incentive Contracts. See 16.405-2 

for a more complete description and discussion of application of these 

contracts. See 16.301-3 and 16.405-2(c) for limitations.



[48 FR 42219, Sept. 19, 1983, as amended at 62 FR 12695, Mar. 17, 1997]