Award Fee for Service and End-Item Contracts, 57014-57016 [2011-23703]
Download as PDF
<![CDATA[
57014
Federal Register / Vol. 76, No. 179 / Thursday, September 15, 2011 / Proposed Rules
Submit your comments,
identified by Docket ID Number EPA–
R03–OAR–2007–0511 by one of the
following methods:
A. https://www.regulations.gov. Follow
the on-line instructions for submitting
comments.
B. E-mail:
fernandez.cristina@epa.gov.
C. Mail: EPA–R03–OAR–2011–0511,
Cristina Fernandez, Associate Director,
Office of Air Program Planning,
Mailcode 3AP30, U.S. Environmental
Protection Agency, Region III, 1650
Arch Street, Philadelphia, Pennsylvania
19103.
D. Hand Delivery: At the previouslylisted EPA Region III address. Such
deliveries are only accepted during the
Docket’s normal hours of operation, and
special arrangements should be made
for deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–R03–OAR–2007–
0511. EPA’s policy is that all comments
received will be included in the public
docket without change, and may be
made available online at https://
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit information that you
consider to be CBI or otherwise
protected through https://
www.regulations.gov or e-mail. The
https://www.regulations.gov Web site is
an ‘‘anonymous access’’ system, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an e-mail comment directly
to EPA without going through https://
www.regulations.gov, your e-mail
address will be automatically captured
and included as part of the comment
that is placed in the public docket and
made available on the Internet. If you
submit an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: All documents in the
electronic docket are listed in the
https://www.regulations.gov index.
Although listed in the index, some
information is not publicly available,
i.e., CBI or other information whose
wreier-aviles on DSKGBLS3C1PROD with PROPOSALS
ADDRESSES:
VerDate Mar<15>2010
14:34 Sep 14, 2011
Jkt 223001
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available either electronically in https://
www.regulations.gov or in hard copy
during normal business hours at the Air
Protection Division, U.S. Environmental
Protection Agency, Region III, 1650
Arch Street, Philadelphia, Pennsylvania
19103. Copies of the State submittal are
available at the West Virginia
Department of Environmental
Protection, Division of Air Quality, 601
57th Street, SE., Charleston, West
Virginia 25304.
FOR FURTHER INFORMATION CONTACT:
Martin Kotsch, (215) 814–3335, or by email at kotsch.martin@epa.gov.
SUPPLEMENTARY INFORMATION: For
further information, please see the
information provided in the direct final
action, with the same title, that is
located in the Rules and Regulations
section of this Federal Register
publication. Please note that if EPA
receives adverse comment on an
amendment, paragraph, or section of
this rule and if that provision may be
severed from the remainder of the rule,
EPA may adopt as final those provisions
of the rule that are not the subject of an
adverse comment.
Dated: August 29, 2011.
W.C. Early,
Acting Regional Administrator, Region III.
[FR Doc. 2011–23262 Filed 9–14–11; 8:45 am]
BILLING CODE 6560–50–P
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 1852
RIN 2700–AD70
Award Fee for Service and End-Item
Contracts
National Aeronautics and
Space Administration.
ACTION: Proposed rule.
AGENCY:
NASA proposes to revise the
NASA FAR Supplement (NFS) to
update the Award Fee for Service
Contracts clause (NFS 1852.216–76) to
clarify that the amount of award fee
held in reserve, if any, shall not exceed
$100,000 for the contract. The purpose
of this reserve is to protect the
Government’s interests relative to an
orderly and timely closeout of the
contract. In addition, the Award Fee for
End Item Contracts clause (NFS
1852.216–77) is being updated to add
SUMMARY:
PO 00000
Frm 00014
Fmt 4702
Sfmt 4702
language similar to that contained in the
Award Fee for Service Contracts clause
to allow the contracting officer to
withhold fee payments, at a not to
exceed amount of $100,000 for the
contract, to protect the Government’s
interests relative to an orderly and
timely closeout of the contract.
DATES: Interested parties should submit
comments to NASA at the address
below on or before November 14, 2011
to be considered in formulation of the
final rule.
ADDRESSES: Interested parties may
submit comments to include any
comments relative to the cost associated
with complying with this requirement,
identified by RIN number 2700–AD70,
via the Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
Comments may also be submitted to Bill
Roets, NASA Headquarters, Office of
Procurement, Contract Management
Division, Washington, DC 20546.
Comments may also be submitted by
e-mail to william.roets-1@nasa.gov.
FOR FURTHER INFORMATION CONTACT: Bill
Roets, NASA, Office of Procurement,
Contract Management Division (Suite
5G86); (202) 358–4483; e-mail:
william.roets-1@nasa.gov.
SUPPLEMENTARY INFORMATION:
A. Background
In accordance with FAR 16.406(e), the
NFS clause 1852.216–76 was created
and required for all solicitations and
contracts when an award fee contract
was contemplated and the contract
deliverable was the performance of a
service. This clause delineates the
award fee evaluation and payment
process that will be followed in the
contract. NASA is updating this clause
to clarify that the amount of withheld
award fee shall not exceed $100,000 for
the contract revising paragraph (d) of
1852.216–76. As currently written, the
clause specifies a not to exceed of 15
percent of the contract’s potential award
fee, and on large multi-million dollar
procurements, this reserve could total
millions of dollars which would be
excessive for the intended purpose of
this reserve. By capping this reserve at
$100,000, NASA will set the appropriate
maximum dollar amount for this
potential reserve and will align this
clause with similar language in FAR
clauses 52.216–8, Fixed-Fee, and
52.216–10, Incentive Fee.
Similar language relative to
withholding a reserve amount of fee, not
to exceed $100,000, to protect the
Government’s interests relative to an
orderly and timely closeout of the
contract, is also being added to the
E:\FR\FM\15SEP1.SGM
15SEP1
Federal Register / Vol. 76, No. 179 / Thursday, September 15, 2011 / Proposed Rules
Award Fee for End Items clause (NFS
1852.216–77).
B. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This rule is not a major rule
under 5 U.S.C. 804.
C. Regulatory Flexibility Act
NASA certifies that this proposed rule
will not have a significant economic
impact on a substantial number of small
entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601
et seq., because it merely updates, for
clarification purposes, the maximum
amount of award fee that can be
withheld on a contract which will
provide a benefit to all entities both
large and small. In addition, award fee
contracts are largely the province of
large businesses with large dollar
contracts and the changes promulgated
in this proposed rule do not directly
affect the current business processes of
Federal contractors.
D. Paperwork Reduction Act
The Paperwork Reduction Act (Pub.
L. 104–13) is not applicable because the
NFS changes do not impose information
collection requirements that require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501, et
seq.
List of Subjects in 48 CFR Part 1852
Government procurement.
William P. McNally,
Assistant Administrator for Procurement.
Accordingly, 48 CFR part 1852 is
proposed to be amended as follows:
1. The authority citation for 48 CFR
part 1852 continues to read as follows:
wreier-aviles on DSKGBLS3C1PROD with PROPOSALS
Authority: 42 U.S.C. 2455(a), 2473(c)(1).
PART 1852—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
2. Section 1852.216–76 is revised to
read as follows:
1852.216–76
Contracts.
Award Fee for Service
As prescribed in 1816.406–70(a),
insert the following clause:
VerDate Mar<15>2010
14:34 Sep 14, 2011
Jkt 223001
AWARD FEE FOR SERVICE CONTRACTS
(XX/XX)
(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 selfevaluation 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 award fee payment, e.g., issuance
of unilateral modification by contracting
officer].
(d) The Contracting Officer may direct the
withholding of earned award fee payments
until a reserve is set aside in an amount that
the Contracting Officer considers necessary
to protect the Government’s interest relative
to an orderly and timely closeout of the
contract. This reserve shall not exceed 15
percent of the contract’s total potential award
fee or $100,000, whichever is less.
(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
PO 00000
Frm 00015
Fmt 4702
Sfmt 4702
57015
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)
3. Section 1852.216–77 is revised to
read as follows:
1852.216–77
Contracts.
Award Fee for End Item
As prescribed in 1816.406–70(b),
insert the following clause:
AWARD FEE FOR END ITEM CONTRACTS
(XX/XX)
(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 allocated 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
E:\FR\FM\15SEP1.SGM
15SEP1
57016
Federal Register / Vol. 76, No. 179 / Thursday, September 15, 2011 / Proposed Rules
wreier-aviles on DSKGBLS3C1PROD with PROPOSALS
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 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
VerDate Mar<15>2010
14:34 Sep 14, 2011
Jkt 223001
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
PO 00000
Frm 00016
Fmt 4702
Sfmt 9990
payment, e.g., issuance of a unilateral
modification by the Contracting Officer].
(d) The Contracting Officer may direct the
withholding of interim award fee payments
until a reserve is set aside in an amount that
the Contracting Officer considers necessary
to protect the Government’s interest relative
to an orderly and timely closeout of the
contract. This reserve shall not exceed 15
percent of the contracts total potential award
fee or $100,000, whichever is less.
(e) 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)
[FR Doc. 2011–23703 Filed 9–14–11; 8:45 am]
BILLING CODE 7510–01–P
E:\FR\FM\15SEP1.SGM
15SEP1
]]>Agencies
[Federal Register Volume 76, Number 179 (Thursday, September 15, 2011)]
[Proposed Rules]
[Pages 57014-57016]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23703]
=======================================================================
-----------------------------------------------------------------------
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1852
RIN 2700-AD70
Award Fee for Service and End-Item Contracts
AGENCY: National Aeronautics and Space Administration.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: NASA proposes to revise the NASA FAR Supplement (NFS) to
update the Award Fee for Service Contracts clause (NFS 1852.216-76) to
clarify that the amount of award fee held in reserve, if any, shall not
exceed $100,000 for the contract. The purpose of this reserve is to
protect the Government's interests relative to an orderly and timely
closeout of the contract. In addition, the Award Fee for End Item
Contracts clause (NFS 1852.216-77) is being updated to add language
similar to that contained in the Award Fee for Service Contracts clause
to allow the contracting officer to withhold fee payments, at a not to
exceed amount of $100,000 for the contract, to protect the Government's
interests relative to an orderly and timely closeout of the contract.
DATES: Interested parties should submit comments to NASA at the address
below on or before November 14, 2011 to be considered in formulation of
the final rule.
ADDRESSES: Interested parties may submit comments to include any
comments relative to the cost associated with complying with this
requirement, identified by RIN number 2700-AD70, via the Federal
eRulemaking Portal: https://www.regulations.gov. Follow the instructions
for submitting comments. Comments may also be submitted to Bill Roets,
NASA Headquarters, Office of Procurement, Contract Management Division,
Washington, DC 20546. Comments may also be submitted by e-mail to
william.roets-1@nasa.gov.
FOR FURTHER INFORMATION CONTACT: Bill Roets, NASA, Office of
Procurement, Contract Management Division (Suite 5G86); (202) 358-4483;
e-mail: william.roets-1@nasa.gov.
SUPPLEMENTARY INFORMATION:
A. Background
In accordance with FAR 16.406(e), the NFS clause 1852.216-76 was
created and required for all solicitations and contracts when an award
fee contract was contemplated and the contract deliverable was the
performance of a service. This clause delineates the award fee
evaluation and payment process that will be followed in the contract.
NASA is updating this clause to clarify that the amount of withheld
award fee shall not exceed $100,000 for the contract revising paragraph
(d) of 1852.216-76. As currently written, the clause specifies a not to
exceed of 15 percent of the contract's potential award fee, and on
large multi-million dollar procurements, this reserve could total
millions of dollars which would be excessive for the intended purpose
of this reserve. By capping this reserve at $100,000, NASA will set the
appropriate maximum dollar amount for this potential reserve and will
align this clause with similar language in FAR clauses 52.216-8, Fixed-
Fee, and 52.216-10, Incentive Fee.
Similar language relative to withholding a reserve amount of fee,
not to exceed $100,000, to protect the Government's interests relative
to an orderly and timely closeout of the contract, is also being added
to the
[[Page 57015]]
Award Fee for End Items clause (NFS 1852.216-77).
B. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This rule is not a major rule under 5 U.S.C. 804.
C. Regulatory Flexibility Act
NASA certifies that this proposed rule will not have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq.,
because it merely updates, for clarification purposes, the maximum
amount of award fee that can be withheld on a contract which will
provide a benefit to all entities both large and small. In addition,
award fee contracts are largely the province of large businesses with
large dollar contracts and the changes promulgated in this proposed
rule do not directly affect the current business processes of Federal
contractors.
D. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 104-13) is not applicable
because the NFS changes do not impose information collection
requirements that require the approval of the Office of Management and
Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 1852
Government procurement.
William P. McNally,
Assistant Administrator for Procurement.
Accordingly, 48 CFR part 1852 is proposed to be amended as follows:
1. The authority citation for 48 CFR part 1852 continues to read as
follows:
Authority: 42 U.S.C. 2455(a), 2473(c)(1).
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
2. Section 1852.216-76 is revised to read as follows:
1852.216-76 Award Fee for Service Contracts.
As prescribed in 1816.406-70(a), insert the following clause:
AWARD FEE FOR SERVICE CONTRACTS (XX/XX)
(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 award fee payment, e.g.,
issuance of unilateral modification by contracting officer].
(d) The Contracting Officer may direct the withholding of earned
award fee payments until a reserve is set aside in an amount that
the Contracting Officer considers necessary to protect the
Government's interest relative to an orderly and timely closeout of
the contract. This reserve shall not exceed 15 percent of the
contract's total potential award fee or $100,000, whichever is less.
(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)
3. Section 1852.216-77 is revised to read as follows:
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 (XX/XX)
(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 allocated 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
[[Page 57016]]
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 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) The Contracting Officer may direct the withholding of
interim award fee payments until a reserve is set aside in an amount
that the Contracting Officer considers necessary to protect the
Government's interest relative to an orderly and timely closeout of
the contract. This reserve shall not exceed 15 percent of the
contracts total potential award fee or $100,000, whichever is less.
(e) 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)
[FR Doc. 2011-23703 Filed 9-14-11; 8:45 am]
BILLING CODE 7510-01-P
