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                            16.402-3 Delivery incentives.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart16.016.116.216.316.416.516.616.7
Section16.40116.40216.40316.40416.40516.406
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16.402-3 Delivery incentives.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.    **Parent topic:**  16.402 Application of predetermined, formula-type incentives.
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