Peggy:

I have assumed that you're asking about formula-type performance and delivery incentives, as described in FAR 16.402, specifically in 16.402-2 and 16.402-3. FAR 16.402-4 briefly discusses the use of multiple formula-type incentives.

FAR provides little guidance about the use of formula-type performance and delivery incentives and even less about multiple formula-type incentive arrangements. I can tell you that multiple formula-type incentives fell out of favor in the late 1970s because their extreme complexity makes it difficult to develop effective tradeoff structures. (FAR 16.402-4(b) alludes to this problem.) That's why award fee contracts are now the most commonly used multiple incentive arrangements.

However, if you are in fact interested in formula-type performance or delivery incentives and you still want to try to use a multiple formula incentive arrangement, try to get your hands on a copy of the old DOD/NASA Incentive Contracting Guide (October 1969), it contains what is probably the most comprehensive guidance ever published about performance, delivery, and multiple incentive arrangements.

CPIF/CPAF combinations were popular for many years and are still in use. You can find examples on the Web by searching the CBD. Perhaps that's what you're looking for.

You will find multiple cost and performance incentives as well as award fee in this DOE-Idaho Contract No. DE-AC07-99ID13727 http://www.id.doe.gov/doeid/PSD/proc-div.html

By Peggy Richter on Thursday, July 27, 2000 - 10:19 am:

we've done numerous CPAF type contracts at China Lake, and I know the FAR says that a CPAF is technically a "type of incentive contract", but we were hoping to find samples of contracts other than those identified as CPAF. I too was surprised that when we went to search, we could find no CPIF examples. I did find a NASA sampler using FPIF, and I suppose that there is no real reason why some of the ideas in an FPIF couldn't be adapted for a multiple-incentive CPIF. We do a number of CPFF & CPAF contracts here (we are, after all, an RDT&E site) but very very few CPIF or FPIF types. Thanks for looking though. Obviously this isn't a much used contract technique.

By Vern Edwards on Wednesday, July 26, 2000 - 04:04 pm:

Peggy:

Virtually all multiple incentives these days are award fee incentives. I have not been able to find a CPIF contract with incentives on both cost and performance or schedule, although one would think that there must be some.

You can find a lot of award fee plans by going to the CBD on-line and doing a simple search for "award fee."

Vern

By Peggy Richter on Wednesday, July 26, 2000 - 03:56 pm:

I'm looking for examples of contracts using multiple incentives AND for any examples of contracts using incentives for performance results where the end item is somewhat "vague" or very broad. We are considering either / or for use in future RDT&E contracts where the end result is a general goal and digressions following up on leads from discoveries / tests are likely. our usual contracts for this kind of effort are COST
Plus (either CPFF or CPAF). We are particularly interested in the clauses used for the incentives.