(d) For guidance on award fee contracting, refer to Air Force Policy for Award Fee Contracting Memo, dated 15 Jun 2007 and the AF Award Fee Guide.
(i) Careful consideration should be given to the establishment of award fee periods relative to whether it is more appropriate to use event-based periods (i.e., technical demonstration milestones) in lieu of calendar-based dates. Proper use of event-based periods precludes the unnecessary loss of award fee leverage which could occur if the fee were inappropriately linked to calendar-based dates. For example, a critical design review would be better suited for event-based award fee periods since completion of the effort could be delayed for any number of reasons.
(ii) Translation of award fee percentages to dollars constitutes an administrative change to the plan that does not require FDO approval. See IG 5316.401 for additional Award Fee Plan / Focal Point guidance.
(iii) For ESC, the following memo applies: AFPEO/C2&CS Award Fee Contracting Policy letter on 12 Oct 2007.
