Code of Federal Regulations (Last Updated: November 8, 2024) |
Title 48 - Federal Acquisition Regulations System |
Chapter 15 - Environmental Protection Agency |
SubChapter C - Contracting Methods and Contract Types |
Part 1516 - Types of Contracts |
Subpart 1516.4 - Incentive Contracts |
§ 1516.401-270 - Definition.
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1516.401-270 Definition.
Because theAcceptable quality level (AQL) as used in this subpart means the minimum percent of deliverables which are compliant with a given performance standard that would permit a contractor to become eligible for an award term incentive.
mayThe performance necessary for eligibility for the award term incentive
, themust be in excess of that necessary for the Government acceptance of contract deliverables
may. The AQLs associated with the award term incentive
shall exceed the AQLs associated with the acceptance of contract deliverables. For example, under contract X, acceptable performance is 75 percent of reports submitted to the Government within five days. However, to be eligible for an award term incentive, 85 percent of reports must be submitted to the Government within five days.