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48 CFR 216.402-2

216.402-2 Performance incentives.

United States · 48 CFR — Federal Acquisition Regulations System · Status: effective

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48 CFR 216.402-2, 216.402-2 Performance incentives, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/243190
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(1) See PGI 216.402-2 for guidance on establishing performance incentives. (2) Contracting officers shall ensure requirements about the payment of incentive fees or the imposition of penalties are included in the solicitation for a contract for the engineering and manufacturing development or production of a weapon system, including embedded software, if the program manager or comparable requiring activity official exercising program manager responsibilities includes— (i) Provisions for the payment of incentive fees to the contractor, based on achievement of design specification requirements for reliability and maintainability of weapons systems under the contract; or (ii) The imposition of penalties to be paid by the contractor to the Government for failure to achieve such design specification requirements (10 U.S.C. 4328).

Legislative history

This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.