§ 1816.404-270 - Approval of CPAF contracts.

(a) Use of a cost-plus-award-fee (CPAF) contract shall be approved in writing by the procurement officer. The procurement officer's approval shall include a discussion of the other types of contracts considered and shall indicate why a CPAF contract is the appropriate choice.

(b) Normally, CPAF contracts are only used on contracts with a total estimated cost and few greater than $1 million per year. The procurement officer may authorize use of a CPAF contract for lower-valued acquisitions, but should do so only in exceptional situations, such as contract requirements having direct health or safety impacts, where the judgmental assessment of the quality of contractor performance is critical.