As prescribed in 5316.406(e), insert the following clause, substantially as written, in Section I:
AWARD FEE (AFMC) (OCT 2008)
(a) In addition to the profit/fee set forth elsewhere in the contract, the Contractor may earn a total award fee amount of up to _____| (insert dollar amount)| on the basis of performance during the evaluation periods.
(b) Monitoring of Performance. The Contractor's performance will be continually monitored by the performance monitors whose findings are reported to the Award Fee Review Board (AFRB). The AFRB recommends an award fee to the Fee Determining Official (FDO) who makes the final decision of the award fee amount paid based on the Contractor's performance during the award fee evaluation period.
(c) Award Fee Plan. The evaluation criteria and associated grades are specified in the award fee plan. The evaluation periods with the associated award fee pool amounts and performance criteria with associated percentages of available award fee are also specified in the award fee plan. Upon contract award, the Contractor will be provided the FDO-approved award fee plan.
(d) Modification of Award Fee Plan. Unilateral changes may be made to the award fee plan if the Contractor is provided written notification by the Contracting Officer before the start of the upcoming evaluation period. Changes affecting the current evaluation period must be by bilateral agreement.
(e) Self-Evaluation. The Contractor may submit to the Contracting Officer, within five (5) working days after the end of each award fee evaluation period, a brief written self-evaluation of its performance for that period. This self-evaluation shall not exceed _____(insert number of pages) pages. This self-evaluation will be used in the AFRB's evaluation of the Contractor's performance during this period.
(f) Determination and Methodology. The determination and methodology for determining the award-fee amount are unilateral decisions made solely at the discretion of the Government.
(g) Award Fee Payment.
(1) Award fee is not subject to the allowable cost, and payment or termination clauses of this
contract.
(2) The Contractor may bill for the award fee immediately upon receipt of the contract modification
authorizing payment of the provisional or earned award fee amount.
(End of clause)
