cost plus award fee
A cost reimbursement type contract suitable for level of effort contracts where mission feasibility is established but measurement of achievement must be by subjective evaluation rather than objective measurement. A CPAF contract provides for a fee consisting of (a) a base amount (which may be zero) fixed at inception of the contract and (b) an award amount, based upon a judgmental evaluation by the Government sufficient to provide motivation for excellence in contract performance. A CPAF contract may not be used to avoid establishing a Cost Plus Fixed Fee (CPFF) contract when the criteria for CPFF contracts apply or developing objective targets so a Cost Plus Incentive Fee (CPIF) contract can be used.
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