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Award Term Contracts

By Christine Williams on Wednesday, June 28, 2000 - 10:06 am:

This question came up on another forum I visit often and a place I have always found a great deal of information on this subject is the CBD search page. It you do a search for "award term" it will show you who is currently (and past) using this type contract and you will be able to find sample solicitations.


By Vern Edwards on Wednesday, June 28, 2000 - 08:54 am:

John:

The most extensive guidance about award term incentives that has been issued to date is in a draft award fee/award term guide that is circulating within the Air Force for comment. You should be able to get it from Air Force Material Command PK, but it is not available at their public sites. Also, an outfit called Potomac Forum, Ltd. has announced that it will hold a conference about award term contracting in McLean, Virginia on Aug. 23. I don't know anything about Potomac Forum, and I don't endorse their conference. I stumbled across their information on the Internet.

Allow me to point out that there are no experts on award term contracting. The concept is too new for there to be any experts. The first award term contract was awarded by the Air Force in 1997 or 1998 and has not been in existence long enough to demonstrate whether or not the concept works well if at all or to identify all of the problems that can emerge in long term contractual relationships. The Air Force has probably done more award term contracts than anybody else, but GSA has awarded the largest award term contract, and NASA and DLA have also awarded them. The Army and the Navy may have awarded some as well.

To date, award term has worked like award fee. The contracts have included an award term clause and an award term plan. The main difference between award fee and award term is that the incentive payoff is an extension of the contract performanc period instead of more fee. Some agencies have combined award fee with award term.

I suggest that you search and call around -- starting within the Air Force -- and find as many offices in as many agencies as you can that have issued award term solicitations or award term contracts. Obtain copies of their solicitations and contracts and then take a look at the following:

1. the award term clause;
2. the award term plan; and,
3. the contract pricing arrangements.

Award term is an interesting and promising experiment, but the very nature of the idea -- extending the term of the contract -- means that it will be in an experimental state for at least ten more years.

I have written a set of "issue questions" about award term contracts in which I have tried to identify and frame the key issues. If you (or anyone else) would like a copy, just send me an email.


By JET on Tuesday, June 27, 2000 - 08:54 pm:

The below website should be helpful to you. It houses a repository of information on award term contracting, and it also has phone numbers of Air Force experts on the topic. I hope this helps you.

http://www.afmc-pub.wpafb.af.mil/HQ-AFMC/PK/pkp/pkpc/atermpub.htm


By bob antonio on Tuesday, June 27, 2000 - 03:15 pm:

John:

AFMC, the Army, and NASA have written studies on the subject. NASA's Goddard Space Flight Center is in the solicitation process for an award-term contract. Either Brooks or Kelly AFB in San Antonio awarded an award-term contract. Additionally, Andrews AFB had a solicitation last year about this time.

I can send you some items this evening. However, I have not found a great deal of information out there.


By John Huckle on Tuesday, June 27, 2000 - 02:01 pm:

Does anyone know of any sources of guidance or information for writing award term service contracts, that is, giving the contractor the incentive that good (or excellent) performance may result in awarding additional periods of performance to the contract term?

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