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e-CFR data is current as of February 25, 2021

Title 48Chapter 1Subchapter CPart 16Subpart 16.4 → §16.402-3


Title 48: Federal Acquisition Regulations System
PART 16—TYPES OF CONTRACTS
Subpart 16.4—Incentive Contracts


16.402-3   Delivery incentives.

(a) Delivery incentives should be considered when improvement from a required delivery schedule is a significant Government objective. It is important to determine the Government's primary objectives in a given contract (e.g., earliest possible delivery or earliest quantity production).

(b) Incentive arrangements on delivery should specify the application of the reward-penalty structure in the event of Government-caused delays or other delays beyond the control, and without the fault or negligence, of the contractor or subcontractor.

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