Return to Article: GAO: Agencies need to do more to ensure proper use of contractor award fees
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84417
Limiting the opportunity for contractors to have a second chance at earning previously unearned fee in a subsequent period (e.g. rollover) maximizes the incentive during an award fee period, but also is where the cost savings can have significant impact. Under very limited circumstances should rollover be allowed, because it dilutes the intent of motivating performance since the contractors will simply view the fees as a future target and perhaps not live up to expectations. Additionally, no fee should be paid for performance that is judged to be unsatisfactory or does not meet contract requirements, or even satisfactory for that matter. I am not a proponent of providing award fees for meeting requirements, as the point is to motivate better than average performance which improves operations, efficiencies, and is what the government is seeking. If the contractor will simply be meeting requirements, where is the motivation or justification to pay award fees?
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82057
So when you do use the process correctly and dont award the contractor with what they think they deserve they run to their rep in Congress and cry foul. The whole process is way to political.
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81701
" . . . simply because the federal government does not know what it wants or needs or how services should be delivered." Not just on award fee contracts.
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