§ 216.402-2 - Performance incentives.

216.402-2 Performance incentives.

Cross Reference

Link to an amendment published at 87 FR 76992, Dec. 16, 2022.

(1) See PGI 216.402-2 for guidance on establishing performance incentives.

(2) Contracting officers shall ensure requirements about the payment of incentive fees or the imposition of penalties are included in the solicitation for a contract for the engineering and manufacturing development or production of a weapon system, including embedded software, if the program manager or comparable requiring activity official exercising program manager responsibilities includes -

(i) Provisions for the payment of incentive fees to the contractor, based on achievement of design specification requirements for reliability and maintainability of weapons systems under the contract; or

(ii) The imposition of penalties to be paid by the contractor to the Government for failure to achieve such design specification requirements (10 U.S.C. 24434328).

[71 FR 39007, July 11, 2006, as amended at 84 FR 58333, Oct. 31, 2019; 87 FR 15818, Mar. 18, 2022; 87 FR 76992, Dec. 16, 2022]