[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: 48CFR37.602-4]



[Page 766]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 37_SERVICE CONTRACTING--Table of Contents

 

               Subpart 37.6_Performance-Based Contracting

 

Sec. 37.602-4  Contract type.



    Contract types most likely to motivate contractors to perform at 

optimal levels shall be chosen (see subpart 16.1 and, for research and 

development contracts, see 35.006). To the maximum extent practicable, 

performance incentives, either positive or negative or both, shall be 

incorporated into the contract to encourage contractors to increase 

efficiency and maximize performance (see subpart 16.4). These incentives 

shall correspond to the specific performance standards in the quality 

assurance surveillance plan and shall be capable of being measured 

objectively. Fixed-price contracts are generally appropriate for 

services that can be defined objectively and for which the risk of 

performance is manageable (see subpart 16.1).