Incentive Order Type Sample Clauses
The Incentive Order Type clause defines a specific category of purchase order that includes additional rewards or bonuses for meeting certain performance criteria. Typically, this clause outlines the conditions under which incentives are earned, such as achieving delivery milestones, exceeding quality standards, or completing work ahead of schedule. By clearly specifying the terms for earning incentives, this clause motivates suppliers or contractors to perform at higher levels and helps align their interests with those of the buyer, ultimately driving better outcomes for both parties.
Incentive Order Type. The OCO must determine fair and reasonable pricing for any incentives in Orders and develop a plan to implement and monitor an award-fee, incentive-fee, or award-term result in accordance with FAR subpart 15.4, FAR subpart 16.4, and customer agency policy.
Incentive Order Type. 11.1. The OCO must determine fair and reasonable pricing for all incentives in Orders and develop a plan to implement and monitor an Award-Fee, Incentive- Fee, or Award-Term result in accordance with FAR 15.4, Pricing, FAR 16.4, Incentive Contracts and customer agency policy. This is an area of increasing regulatory oversight pursuant to Section 867 of the ▇▇▇▇▇▇ ▇▇▇▇▇▇ National Defense Authorization Act of 2009, P.L. 110-417 (“DHNDAA” or “NDAA 2009”), and customer agency policy, requiring OCO due diligence. OCOs considering incentive contracting are reminded of their obligations under FAR 1.602-2.