FAR 16.405-2
Cost-plus-award-fee contracts.
A cost-plus-award-fee contract is a cost-reimbursement contract that provides for a fee consisting of (1) a base amount fixed at inception of the contract, if applicable and at the discretion of the contracting officer, and (2) an award amount that the contractor may earn in whole or in part during performance and that is sufficient to provide motivation for excellence in the areas of cost, schedule, and technical performance. See 16.401 (e) for the requirements relative to utilizing this contract type.
Source: acquisition.gov — FAR
More parts
Have a solicitation to win?
Paste it into the free Contrax bid scorer — get an AI win-probability score with the FAR clauses that matter, in seconds. No signup required.