This text is not in eCFR or DITA. It is extracted from the .docx attachment for Class Deviation 2026-O0045, which directs contracting officers to use it in place of the codified PGI. The parsed text is a convenience layer; the .docx attachment is authoritative.
Give appropriate weight to basic acquisition objectives in negotiating the range of fee and the fee adjustment formula. For example—
(a) 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
(b) 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.
Authoritative source
Issued as an attachment to the Office of the Secretary of Defense memorandum for Class Deviation 2026-O0045, signed July 15, 2026. Verify against the attachment before relying on this text.
- .docx attachment for Class Deviation 2026-O0045
- Class Deviation 2026-O0045 memorandum (PDF)
- Class Deviation 2026-O0045 on part52.dev
Codified PGI
No codified counterpart is tracked for PGI 216.405. This section exists only in the Class Deviation.