[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: 48CFR1852.216-88]

[Page 282-283]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
        CHAPTER 18--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
 
Sec. 1852.216-88  Performance incentive.

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

                    Performance Incentive (JAN 1997)

    (a) A performance incentive applies to the following hardware 
item(s) delivered under this contract: (1).
    The performance incentive will measure the performance of those 
items against the salient hardware performance requirement, called 
``unit(s) of measurement,'' e.g., months in service or amount of data 
transmitted, identified below. The performance incentive becomes 
effective when the hardware is put into service. It includes a standard 
performance level, a positive incentive, and a negative incentive, which 
are described in this clause.
    (b) Standard performance level. At the standard performance level, 
the Contractor has met the contract requirement for the unit of 
measurement. Neither positive nor negative incentives apply when this 
level is achieved but not exceeded. The standard performance level for 
(1) ---- is established as follows: (2).
    (c) Positive incentive. The Contractor earns a separate positive 
incentive amount for each hardware item listed in paragraph (a) of this 
clause when the standard performance level for that item is exceeded. 
The amount earned for each item varies with the units of measurement 
achieved, up to a maximum positive performance incentive amount of $ (3) 
---- per item. The units of measurement and the incentive amounts 
associated with achieving each unit are shown below: (4).
    (d) Negative incentive. The Contractor will pay to the Government a 
negative incentive amount for each hardware item that fails to achieve 
the standard performance level. The amount to be paid for each item 
varies with the units of measurement achieved, up to the maximum 
negative incentive amount of $ (5) ----. The units of measurement and 
the incentive amounts associated with achieving each unit are shown 
below: (6).
    (e) The final calculation of positive or negative performance 
incentive amounts shall be done when performance (as defined by the unit 
of measurement) ceases or when the maximum positive incentive is 
reached.
    (1) When the Contracting Officer determines that the performance 
level achieved fell below the standard performance level, the Contractor 
will either pay the amount due the Government or credit the next payment 
voucher for the amount due, as directed by the Contracting Officer.

[[Page 283]]

    (2) When the performance level exceeds the standard level, the 
Contractor may request payment of the incentive amount associated with a 
given level of performance, provided that such payments shall not be 
more frequent than monthly. When performance ceases or the maximum 
positive incentive is reached, the Government shall calculate the final 
performance incentive earned and unpaid and promptly remit it to the 
contractor.
    (f) If performance cannot be demonstrated, through no fault of the 
Contractor, within [insert number of months or years] after the date of 
hardware acceptance by the Government, the Contractor will be paid 
[insert percentage] of the maximum performance incentive.
    (g) The decisions made as to the amount(s) of positive or negative 
incentives are subject to the Disputes clause.
    (1) Insert applicable item number(s) and/or nomenclature.
    (2) Insert a specific unit of measurement for each hardware item 
listed in (1) and each salient characteristic, if more than one.
    (3) Insert the maximum positive performance incentive amount (see 
1816.402-270(e) (1) and (2)).
    (4) Insert all units of measurement and associated dollar amounts up 
to the maximum performance incentive.
    (5) Insert the appropriate amount in accordance with 1816.402-
270(e).
    (6) Insert all units of measurement and associated dollar amounts up 
to the maximum negative performance incentive.

                             (End of clause)

[62 FR 3486, Jan. 23, 1997, as amended at 62 FR 36733, July 9, 1997]