§4711 Linking of Award and Incentive Fees to Acquisition Outcomes

Summary

Requires the Federal Acquisition Regulation to give executive agencies (except the Department of Defense) clear rules on when and how to use award and incentive fees in contracts. The term "executive agency" has the meaning in section 133 of this title. The rules must make award fees match real program results (measured by cost, schedule, and performance). They must say who can approve use of these fees, explain when performance is "excellent" or "superior" and how much of the fee to pay, and set standards for payments for "acceptable," "average," "good," or "satisfactory" work. No fees may be paid for below‑satisfactory work. The rules must cover rolling over unearned fees, use consistent definitions government‑wide, require agencies to collect and review fee data, include ways to measure fee effectiveness, and share successful incentive methods. The Department of Defense stays under guidance issued by the Secretary of Defense under section 814 of the John Warner NDAA for Fiscal Year 2007 (Public Law 109–364, 10 U.S.C. 2302 note).