PGI 216.405: Cost-plus-incentive-fee contracts.
R-DFARS PGI › Part 216 › PGI 216.405 · issued under 2026-O0045
Deviated Text
This text comes from the Word attachment to class deviation 2026-O0045, not from acquisition.gov. The deviation memo directs contracting officers to use it in place of the codified PGI. The source attachment linked below is authoritative.
Text
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.