Comment on FR Doc # E9-24579

Award fees are mostly exceeded in Department of Defense actions due to the DFARS regulatory fixed fee limit of 3% of cost. Award fee contracts can be a valuable tool for Program Managers allowing them more flexibility in evaluating and awarding, when warranted, contractor performance without being locked into rigid incentive criteria that likely will not evolve with the program requirements. In effect, modifying the FAR regarding award fee contracts without a concurrent change to the DFARS in this area, particularly in allowing a higher fixed fee, negate most of the value of this change and effectively denies the use of a valuable incentive contract type to the largest Government procurement programs.