SEC. 867. LINKING OF AWARD AND
INCENTIVE FEES TO ACQUISITION OUTCOMES.
(a) Guidance for Executive Agencies on Linking of Award and
Incentive Fees to Acquisition Outcomes- Not later than 1 year
after the date of the enactment of this Act, the Federal
Acquisition Regulation shall be amended to provide executive
agencies other than the Department of Defense with instructions,
including definitions, on the appropriate use of award and
incentive fees in Federal acquisition programs.
(b) Elements- The regulations under subsection (a) shall--
(1)
ensure that all new contracts using award fees link such fees
to acquisition outcomes (which shall be defined in terms of
program cost, schedule, and performance);
(2) establish standards for identifying the appropriate level
of officials authorized to approve the use of award and
incentive fees in new contracts;
(3) provide guidance on the circumstances in which contractor
performance may be judged to be `excellent' or `superior' and
the percentage of the available award fee which contractors
should be paid for such performance;
(4) establish standards for determining the percentage of the
available award fee, if any, which contractors should be paid
for performance that is judged to be `acceptable', `average',
`expected', `good', or `satisfactory';
(5) ensure that no award fee may be paid for contractor
performance that is judged to be below satisfactory
performance or performance that does not meet the basic
requirements of the contract;
(6) provide specific direction on the circumstances, if any,
in which it may be appropriate to roll over award fees that
are not earned in one award fee period to a subsequent award
fee period or periods;
(7) ensure consistent use of guidelines and definitions
relating to award and incentive fees across the Federal
Government;
(8) ensure that each executive agency--
(A)
collects relevant data on award and incentive fees paid to
contractors; and
(B) has mechanisms in place to evaluate such data on a
regular basis;
(9)
include performance measures to evaluate the effectiveness of
award and incentive fees as a tool for improving contractor
performance and achieving desired program outcomes; and
(10) provide mechanisms for sharing proven incentive
strategies for the acquisition of different types of products
and services among contracting and program management
officials.
(c)
Guidance for Department of Defense- The Department of Defense
shall continue to be subject to guidance on award and incentive
fees issued by the Secretary of Defense pursuant to section 814
of the John Warner National Defense Authorization Act for Fiscal
Year 2007 (Public Law 109-364; 120 Stat. 2321).
(d) Executive Agency Defined- In this section, the term
`executive agency' has the meaning given such term in section
4(1) of the Office of Federal Procurement Policy Act (41 U.S.C.
403(1)).
|
Linking award fees to acquisition
outcomes. Section 867 requires award fees to be paid only
when a contractor has at least a satisfactory level of
performance. |
