[Code of Federal Regulations]
[Title 48, Volume 6]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR1852.216-76]

[Page 278-279]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
        CHAPTER 18--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
 
Sec. 1852.216-76  Award Fee for service contracts.

    As prescribed in 1816.406-70(a), insert the following clause:

               Award Fee for Service Contracts (JUN 2000)

    (a) The contractor can earn award fee from a minimum of zero dollars 
to the maximum stated in NASA FAR Supplement clause 1852.216-85, 
``Estimated Cost and Award Fee'' in this contract.
    (b) Beginning 6* months after the effective date of this contract, 
the Government shall evaluate the Contractor's performance every 6* 
months to determine the amount of award fee earned by the contractor 
during the period. The Contractor may submit a self-evaluation of 
performance for each evaluation period under consideration. These self-
evaluations will be considered by the Government in its evaluation. The 
Government's Fee Determination Official (FDO) will determine the award 
fee amounts based on the Contractor's performance in accordance with 
[identify performance evaluation plan]. The plan may be revised 
unilaterally by the Government prior to the beginning of any rating 
period to redirect emphasis.
    (c) The Government will advise the Contractor in writing of the 
evaluation results. The [insert payment office] will make payment based 
on [Insert method of authorizing

[[Page 279]]

award fee payment, e.g., issuance of unilateral modification by 
contracting officer].
    (d) After 85 percent of the potential award fee has been paid, the 
Contracting Officer may direct the withholding of further payment of 
award fee until a reserve is set aside in an amount that the Contracting 
Office considers necessary to protect the Government's interest. This 
reserve shall not exceed 15 percent of the total potential award fee.
    (e) The amount of award fee which can be awarded in each evaluation 
period is limited to the amounts set forth at [identify location of 
award fee amounts]. Award fee which is not earned in an evaluation 
period cannot be reallocated to future evaluation periods.
    (f)(1) Provisional award fee payments [insert ``will'' or ``will 
not'', as applicable] be made under this contract pending the 
determination of the amount of fee earned for an evaluation period. If 
applicable, provisional award fee payments will be made to the 
Contractor on a [insert the frequency of provisional payments (not more 
often than monthly)] basis. The total amount of award fee available in 
an evaluation period that will be provisionally paid is the lesser of 
[Insert a percent not to exceed 80 percent] or the prior period's 
evaluation score.
    (2) Provisional award fee payments will be superseded by the final 
award fee evaluation for that period. If provisional payments exceed the 
final evaluation score, the Contractor will either credit the next 
payment voucher for the amount of such overpayment or refund the 
difference to the Government, as directed by the Contracting Officer.
    (3) If the Contracting Officer determines that the Contractor will 
not achieve a level of performance commensurate with the provisional 
rate, payment of provisional award fee will be discontinued or reduced 
in such amounts as the Contracting Officer deems appropriate. The 
Contracting Officer will notify the Contractor in writing if it is 
determined that such discontinuance or reduction is appropriate.
    (4) Provisional award fee payments [insert ``will'' or ``will not'', 
as appropriate] be made prior to the first award fee determination by 
the Government.
    (g) Award fee determinations are unilateral decisions made solely at 
the discretion of the Government.

*[A period of time greater or lesser than 6 months may be substituted in 
accordance with 1816.405-272(a).]

                             (End of clause)

[62 FR 3484, Jan. 23, 1997, as amended at 62 FR 36733, July 9, 1997; 63 
FR 13134, Mar. 18, 1998; 65 FR 38777, June 22, 2000]