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  • Question

    Does DFARS 216.405-2 apply to Fixed price Award Fee contracts


    Answer

    It is not clear, by a review of the regulations only, whether provisional award fee payments are allowed or not allowed on a FPAF contract.  But, I agree with your supervisors that you should use DFARS 216.405-2 (2) as your guidance. I've included the Federal Register Notice, released Feb 14, 2011 at https://acc.dau.mil/CommunityBrowser.aspx?id=652913 that clearly states that DoD is eliminating provisional award fee payments.  Unfortunately, I do not think that the resuting language in the DFARS and PGI is clear on FPAF contracts.  I have contacted the appropriate specialist on the DFARS Council (DARC) to get clarity.  I did not want to hold up my response waiting for the DARC response. I have your name/e-mail/telephone number and will contact you once I hear from the DARC.  In the meantime, you should assume that you can not use provisional award fee payments.

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