PGI 216.402-2 - Part52

This PGI section supplements: DFARS 216.402-2 · FAR 16.402-2

The corresponding FAR Part 16 and DFARS Part 216 have been overhauled under the RFO. PGI replacement text is provided in the RFO deviation attachment. View FAR Part 16

Current Content

(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. 4328).

Change History

Detected	Type	Summary
detected 2026-04-17	[PGI] PGI_MODIFIED	PGI 216.402-2 updated: 4 lines added, 1 lines removed
View diff --- previous +++ current @@ -1 +1,4 @@ -Contractor performance incentives should relate to specific performance areas of milestones, such as delivery or test schedules, quality controls, maintenance requirements, and reliability standards.+(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. 4328).

Detected

Type

Summary

detected 2026-04-17

[PGI] PGI_MODIFIED

PGI 216.402-2 updated: 4 lines added, 1 lines removed

View diff

--- previous
+++ current
@@ -1 +1,4 @@
-Contractor performance incentives should relate to specific performance areas of milestones, such as delivery or test schedules, quality controls, maintenance requirements, and reliability standards.+(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. 4328).

Sources: Search on acquisition.gov · View on acq.osd.mil

PGI 216.402-2: Performance incentives.

Current Content

Change History