Can a Cost Reimbursement/Award Fee/Incentive type of contract be performance-based?
A16 Yes! The FAR does not limit performance-based acquisitions to any contract type, though it clearly states that fixed-price PBAs are preferred. Incentive and award-fee contracts are particularly well-suited for PBAs because the incentives for excellent performance are built into the contract. The alternative would be to create an incentive plan, which is also a well-established practice.
