[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: 48CFR1852.216-77]

[Page 279-280]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
        CHAPTER 18--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
 
Sec. 1852.216-77  Award fee for end item contracts.

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

               Award Fee for End Item Contracts (JUN 2000)

    (a) The contractor can earn award fee, or base fee, if any, 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. 
All award fee evaluations, with the exception of the last evaluation, 
will be interim evaluations. At the last evaluation, which is final, the 
Contractor's performance for the entire contract will be evaluated to 
determine total earned award fee. No award fee or base fee will be paid 
to the Contractor if the final award fee evaluation is ``poor/
unsatisfactory.''
    (b) Beginning 6* months after the effective date of this contract, 
the Government will evaluate the Contractor's interim performance every 
6* months to monitor Contractor performance prior to contract completion 
and to provide feedback to the Contractor. The evaluation will be 
performed in accordance with [identify performance evaluation plan] to 
this contract. The Contractor may submit a self-evaluation of 
performance for each period under consideration. These self-evaluations 
will be considered by the Government in its evaluation. The Government 
will advise the Contractor in writing of the evaluation results. The 
plan may be revised unilaterally by the Government prior to the 
beginning of any rating period to redirect emphasis.
    (c)(1) Base fee, if applicable, will be paid in [Insert ``monthly'', 
or less frequent period] installments based on the percent of completion 
of the work as determined by the Contracting Officer.
    (2) Interim award fee payments will be made to the Contractor based 
on each interim evaluation. The amount of the interim award fee payment 
is limited to the lesser of the interim evaluation score or 80 percent 
of the fee allocation to that period less any provisional payments made 
during the period. All interim award fee payments will be superseded by 
the final award fee determination.
    (3) Provisional award fee payments will [insert ``not'' if 
applicable] be made under this contract pending each interim evaluation. 
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 amount of award fee which will be 
provisionally paid in each evaluation period is limited to [Insert a 
percent not to exceed 80 percent] of the prior interim evaluation score 
(see [insert applicable cite]). Provisional award fee payments

[[Page 280]]

made each evaluation period will be superseded by the interim award fee 
evaluation for that period. If provisional payments made exceed the 
interim 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. If 
the Government determines that (i) the total amount of provisional fee 
payments will apparently substantially exceed the anticipated final 
evaluation score, or (ii) the prior interim evaluation is ``poor/
unsatisfactory,'' the Contracting Officer will direct the suspension or 
reduction of the future payments and/or request a prompt refund of 
excess payments as appropriate. Written notification of the 
determination will be provided to the Contractor with a copy to the 
Deputy Chief Financial Officer (Finance).
    (4) All interim (and provisional, if applicable) fee payments will 
be superseded by the fee determination made in the final award fee 
evaluation. The Government will then pay the Contractor, or the 
Contractor will refund to the Government the difference between the 
final award fee determination and the cumulative interim (and 
provisional, if applicable) fee payments. If the final award fee 
evaluation is ``poor/unsatisfactory'', any base fee paid will be 
refunded to the Government.
    (5) Payment of base fee, if applicable, will be made based on 
submission of an invoice by the Contractor. Payment of award fee will be 
made by the [insert payment office] based on [Insert method of making 
award fee payment, e.g., issuance of a unilateral modification by the 
Contracting Officer].
    (d) 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 3485, Jan. 23, 1997, as amended at 62 FR 36733, July 9, 1997; 65 
FR 38778, June 22, 2000]