Description |
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Except for cost-plus-award-fee contracts (see 16.401(e)), incentive contracts include a target cost, a target profit or fee, and a profit or fee adjustment formula that (within the constraints of a price ceiling or minimum and maximum fee ) provides that --
(1) Actual cost that meets the target will result in the target profit or fee;
(2) Actual cost that exceeds the target will result in downward adjustment of target profit or fee; and
(3) Actual cost that is below the target will result in upward adjustment of target profit or fee. |
Comments |
Business Rule Extra Properties |
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Business Rule Number: | 909207 |
APG Compliant? | |
Business Rule Category: | Structural Assertion |
Business Rule Level: | Operational |
Business Rule Source Type: | Compliance Requirement |
Reference Material: | FAR -- Part 16Types of Contracts
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