FAR 16.404 — Fixed-price contracts with award fees
Regulatory text. Not legal advice.
Award-fee provisions may be used in fixed-price contracts when the Government wishes to motivate a contractor and other incentives cannot be used because contractor performance cannot be measured objectively. Such contracts shall establish a fixed price (including normal profit) for the effort. This price will be paid for satisfactory contract performance. Award fee earned (if any) will be paid in addition to that fixed price. See [FAR 16.401] for the requirements relative to utilizing this contract type.
Citation history: [74 FR 52859, Oct. 14, 2009]
Source: eCFR • Pulled 2026-04-16