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
Give appropriate weight to basic acquisition objectives in negotiating the range of fee and the fee adjustment formula. For example—
(1) In an initial product development contract, it may be appropriate to provide for relatively small adjustments in fee tied to the cost incentive feature, but provide for significant adjustments if the contractor meets or surpasses performance targets; and
(2) In subsequent development and test contracts, it may be appropriate to negotiate an incentive formula tied primarily to the contractor's success in controlling costs.
Change History
| Detected | Type | Summary |
|---|---|---|
| detected 2026-04-17 | PGI_MODIFIED | PGI 216.405-1 updated: 3 lines added, 1 lines removed |
View diff--- previous +++ current @@ -1 +1,3 @@ -See PGI 216.405-1 for guidance on the use of cost-plus-incentive-fee contracts.+Give appropriate weight to basic acquisition objectives in negotiating the range of fee and the fee adjustment formula. For example-- +(1) In an initial product development contract, it may be appropriate to provide for relatively small adjustments in fee tied to the cost incentive feature, but provide for significant adjustments if the contractor meets or surpasses performance targets; and +(2) In subsequent development and test contracts, it may be appropriate to negotiate an incentive formula tied primarily to the contractor's success in controlling costs. |
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