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(250k) ADS Reference 302saa
Office of Procurement
Policy Division
Washington, DC 20523
Overview
An award fee contract provides an additional profit or fee amount that may be awarded, in whole or in part, based upon periodic evaluations of ongoing contractor performance. An award fee arrangement does not include predetermined targets and automatic profit or fee adjustment formulas; instead, the award fee determination is a judgmental one, made unilaterally by the Government and, not, subject to conventional Disputes clause procedures.
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