2409. COST-PLUS-AWARD-FEE CONTRACTS

2409 COST-PLUS-AWARD-FEE CONTRACTS 2409.1 A cost-plus-award-fee contract is a type of cost reimbursement contract and may only be used when the criteria set forth in § 2405.1 of this chapter are satisfied. 2409.2 A cost-plus-award-fee contract may be used when the following factors apply: (a) The work to be performed is such that it is neither feasible nor effective to devise predetermined objective incentive targets applicable to cost, technical performance, or schedule; (b) The likelihood of meeting the procurement objective will be enhanced by using a contract that effectively motivates the contractor toward exceptional performance and provides the District with the flexibility to evaluate both actual performance and the conditions under which it was achieved; and (c) Any additional administrative effort and cost required to monitor and evaluate performance are justified by the expected benefits. 2409.3 A cost-plus-award-fee contract shall provide for a fee consisting of a base amount fixed at inception of the contract and an award amount that the contractor may earn in whole or in part during performance. Each contract shall state a maximum award amount that may be paid under the contract. 2409.4 The amount of the award fee to be paid shall be determined by the contracting officer’s evaluation of the contractor’s performance in terms of the criteria stated in the contract. 2409.5 The award fee determination shall be made unilaterally by the contracting officer and shall not be subject to appeal or the contractor’s rights under the disputes clause in the contract. 2409.6 A cost-plus-award-fee contract shall provide for evaluation at stated intervals during performance, so that the contractor will periodically be informed of the quality of its performance and the area in which improvement is expected. SOURCE: Final Rulemaking published at 35 DCR 1554 (February 26, 1988); as amended by Final Rulemaking published at 65 DCR 00390 (January 19, 2018). District of Columbia Municipal Regulations Contracts and Procurement 27 DCMR § 2409