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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: November 22, 2002

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Provisional Award Fee Payments

SOURCE: Federal Register, November 22, 2002, Vol. 67, No. 226, page 70388

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS 216.405-2, Cost-Plus-Award-Fee Contracts, to permit provisional award fee payments under cost-plus-award-fee (CPAF) contracts to successfully performing contractors prior to an interim or final evaluation for the period.

DATES: Comments must be submitted by January 21, 2003.

ADDRESSES: Respondents may submit comments directly on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, respondents may e-mail comments to: dfars@acq.osd.mil. Also, respondents who cannot submit comments through the web site or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Amy Williams, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062, or by fax to 703-602-0350. Cite "DFARS Case 2002-D013" when making comments on this proposed rule.

FOR FURTHER INFORMATION CONTACT: Sandra Haberlin, 703-602-0289.

SUPPLEMENTAL INFORMATION: Cost-reimbursement contracts containing award fees typically provide for an award fee payment no more frequently than every six months. This may place an undue financial burden on an otherwise successfully performing contractor. Therefore, the proposed rule would revise DFARS 216.405-2 to add paragraph (b)(3), which would provide for the payment of provisional award fees in a CPAF contract within an evaluation period, prior to an interim or final evaluation for that period.

The new paragraph would permit the contracting officer to include provisional award-fee payments in a CPAF contract on a case-by-case basis if the payments:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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