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  • Question

    On a CPIF contract ,when is the fee determination performed?. At contract completion or at final closeout after final indirect rates are determined? Is it possible to do the determination at completion and then revise it at final closeout up or down based on how the final indirect rates affect the cost incurred?


    Answer

    Fee should be payable in accordance with the contract schedule.  Your contract should have clause 52.216-10, Incentive Fee.  It is possible to make a schedule that has the fee calculated after completion of contract and revised at final closeout based on final actual indirect cost rates.  You will have to determine a schedule based on what is most appropriate for your contract.

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