[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: 48CFR16.402-3]



[Page 313]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 16_TYPES OF CONTRACTS--Table of Contents

 

                    Subpart 16.4_Incentive Contracts

 

Sec. 16.402-3  Delivery incentives.



    (a) Delivery incentives should be considered when improvement from a 

required delivery schedule is a significant Government objective. It is 

important to determine the Government's primary objectives in a given 

contract (e.g., earliest possible delivery or earliest quantity 

production).

    (b) Incentive arrangements on delivery should specify the 

application of the reward-penalty structure in the event of Government-

caused delays or other delays beyond the control, and without the fault 

or negligence, of the contractor or subcontractor.