Federal Register / Vol. 74, No. 197 / Wednesday, October 14, 2009 / Rules and Regulations 52859 

(iii) Describe how the contractor’s 

performance will be measured against 

the award-fee evaluation criteria; 

(iv) Utilize the adjectival rating and 

associated description as well as the 

award-fee pool earned percentages 

shown below in Table 16–1. Contracting 

officers may supplement the adjectival 

rating description. The method used to 

determine the adjectival rating must be 

documented in the award-fee plan; 

TABLE 16–1 

Award-Fee Adjectival 

Rating 

Award-Fee Pool Available To Be 

Earned Description 

Excellent .................... 91%—100% .................................. Contractor has exceeded almost all of the significant award-fee criteria and has 

met overall cost, schedule, and technical performance requirements of the contract as defined and measured against the criteria in the award-fee plan for the 

award-fee evaluation period. 

Very Good ................. 76%—90% .................................... Contractor has exceeded many of the significant award-fee criteria and has met 

overall cost, schedule, and technical performance requirements of the contract as 

defined and measured against the criteria in the award-fee plan for the award-fee 

evaluation period. 

Good .......................... 51%—75% .................................... Contractor has exceeded some of the significant award-fee criteria and has met 

overall cost, schedule, and technical performance requirements of the contract as 

defined and measured against the criteria in the award-fee plan for the award-fee 

evaluation period. 

Satisfactory ................ No Greater Than 50% .................. Contractor has met overall cost, schedule, and technical performance requirements 

of the contract as defined and measured against the criteria in the award-fee 

plan for the award-fee evaluation period. 

Unsatisfactory ............ 0% ................................................. Contractor has failed to meet overall cost, schedule, and technical performance requirements of the contract as defined and measured against the criteria in the 

award-fee plan for the award-fee evaluation period. 

(v) Prohibit earning any award fee 

when a contractor’s overall cost, 

schedule, and technical performance is 

below satisfactory; 

(vi) Provide for evaluation period(s) to 

be conducted at stated intervals during 

the contract period of performance so 

that the contractor will periodically be 

informed of the quality of its 

performance and the areas in which 

improvement is expected (e.g. six 

months, nine months, twelve months, or 

at specific milestones); and 

(vii) Define the total award-fee pool 

amount and how this amount is 

allocated across each evaluation period. 

(4) Rollover of unearned award fee. 

The use of rollover of unearned award 

fee is prohibited. 

(5) Limitations. No award-fee contract 

shall be awarded unless— 

(i) All of the limitations in 16.301–3, 

that are applicable to costreimbursement contracts only, are 

complied with; 

(ii) An award-fee plan is completed in 

accordance with the requirements in 

16.401(e)(3); and 

(iii) A determination and finding is 

completed in accordance with 16.401(d) 

addressing all of the suitability items in 

16.401(e)(1). 

(f) Incentive- and Award-Fee Data 

Collection and Analysis. Each agency 

shall collect relevant data on award fee 

and incentive fees paid to contractors 

and include performance measures to 

evaluate such data on a regular basis to 

determine effectiveness of award and 

incentive fees as a tool for improving 

contractor performance and achieving 

desired program outcomes. This 

information should be considered as 

part of the acquisition planning process 

(see 7.105) in determining the 

appropriate type of contract to be 

utilized for future acquisitions. 

(g) Incentive- and Award-Fee Best 

Practices. Each agency head shall 

provide mechanisms for sharing proven 

incentive strategies for the acquisition of 

different types of products and services 

among contracting and program 

management officials. 

16.402–1 [Amended] 

■ 4. Amend section 16.402–1 by 

removing from paragraph (b) ‘‘16.405– 

2’’ and adding ‘‘16.401(e)’’ in its place. 

■ 5. Revise section 16.404 to read as 

follows: 

16.404 Fixed-price contracts with award 

fees. 

Award-fee provisions may be used in 

fixed-price contracts when the 

Government wishes to motivate a 

contractor and other incentives cannot 

be used because contractor performance 

cannot be measured objectively. Such 

contracts shall establish a fixed price 

(including normal profit) for the effort. 

This price will be paid for satisfactory 

contract performance. Award fee earned 

(if any) will be paid in addition to that 

fixed price. See 16.401(e) for the 

requirements relative to utilizing this 

contract type. 

■ 6. Revise section 16.405–2 to read as 

follows: 

16.405–2 Cost-plus-award-fee contracts. 

A cost-plus-award-fee contract is a 

cost-reimbursement contract that 

provides for a fee consisting of (1) a base 

amount fixed at inception of the 

contract, if applicable and at the 

discretion of the contracting officer, and 

(2) an award amount that the contractor 

may earn in whole or in part during 

performance and that is sufficient to 

provide motivation for excellence in the 

areas of cost, schedule, and technical 

performance. See 16.401(e) for the 

requirements relative to utilizing this 

contract type. 

[FR Doc. E9–24579 Filed 10–13–09; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 18 

[FAC 2005–37; FAR Case 2009–003; Item 

VII; Docket 2009-0037; Sequence 1] 

RIN 9000–AL37 

Federal Acquisition Regulation; FAR 

Case 2009–003, National Response 

Framework 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

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52860 Federal Register / Vol. 74, No. 197 / Wednesday, October 14, 2009 / Rules and Regulations 

ACTION: Final rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are issuing a final rule 

amending the Federal Acquisition 

Regulation (FAR) to reflect reissuance of 

the Federal Emergency Management 

Agency’s (FEMA) National Response 

Plan (NRP). On January 22, 2008, FEMA 

reissued the NRP as the National 

Response Framework (NRF). In 

addition, the term ‘‘Incident of National 

Significance’’ was eliminated. These 

changes became effective on March 22, 

2008. 

DATES: Effective Date: November 13, 

2009 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. Ed 

Loeb, Director, Contract Policy Division 

at (202) 501–0650. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at (202) 501–4755. Please 

cite FAC 2005–37, FAR case 2009–003. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On January 22, 2008, FEMA, a 

component of the Department of 

Homeland Security, reissued the 

National Response Plan (NRP) as the 

National Response Framework (NRF). 

With the reissuance, the term ‘‘Incidents 

of National Significance’’ was 

eliminated. These changes became 

effective on March 22, 2008. Both the 

NRP and the term ‘‘Incidents of National 

Significance’’ are now obsolete. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule. This final rule 

does not constitute a significant FAR 

revision within the meaning of FAR 

1.501 and Public Law 98–577, and 

publication for public comments is not 

required. However, the Councils will 

consider comments from small entities 

and other interested parties concerning 

the affected FAR part 18 in accordance 

with 5 U.S.C. 610. Interested parties 

must submit such comments separately 

and should cite 5 U.S.C. 601, et seq. 

(FAC 2005–37, FAR case 2009–003), in 

all correspondence. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

FAR do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. Chapter 35, 

et seq. 

List of Subjects in 48 CFR Part 18 

Government procurement. 

Dated: October 5, 2009. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR part 18 as set forth 

below: 

PART 18—EMERGENCY 

ACQUISITIONS 

■ 1. The authority citation for 48 CFR 

part 18 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

■ 2. Amend section 18.001 by revising 

paragraph (c) to read as follows: 

18.001 Definition. 

* * * * * 

(c) When the President issues an 

emergency declaration, or a major 

disaster declaration. 

■ 3. Amend section 18.203 by revising 

the section heading to read as follows: 

18.203 Emergency declaration or major 

disaster declaration. 

* * * * * 

■ 4. Amend section 18.204 by revising 

paragraph (a) to read as follows: 

18.204 Resources. 

(a) National Response Framework. 

The National Response Framework 

(NRF) is a guide to how the Nation 

conducts all-hazards response. This key 

document establishes a comprehensive, 

national, all-hazards approach to 

domestic incident response. The 

Framework identifies the key response 

principles, roles and structures that 

organize national response. It describes 

how communities, States, the Federal 

Government, the private-sector, and 

nongovernmental partners apply these 

principles for a coordinated, effective 

national response. It also describes 

special circumstances where the Federal 

Government exercises a larger role, 

including incidents where Federal 

interests are involved and catastrophic 

incidents where a State would require 

significant support. The NRF is 

available at http://www.fema.gov/ 

emergency/nrf/. 

* * * * * 

[FR Doc. E9–24580 Filed 10–13–09; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 5 and 52 

[FAC 2005–37; Item VIII; Docket 2009–0009; 

Sequence 5] 

Federal Acquisition Regulation; 

Technical Amendments 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: This document makes 

amendments to the Federal Acquisition 

Regulation in order to make editorial 

changes. 

DATES: Effective Date: October 14, 2009. 

FOR FURTHER INFORMATION CONTACT: The 

Regulatory Secretariat, 1800 F Street, 

NW., Room 4041, Washington, DC, 

20405, (202) 501–4755, for information 

pertaining to status or publication 

schedules. Please cite FAC 2005–37, 

Technical Amendments. 

SUPPLEMENTARY INFORMATION: This 

document makes amendments to the 

Federal Acquisition Regulation in order 

to make editorial changes. 

List of Subjects in 48 CFR Parts 5 and 

52 

Government procurement. 

Dated: October 5, 2009. 

Al Matera, 

Director, Acquisition Policy Division. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 5 and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 5 and 52 continues to read as 

follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 5—PUBLICIZING CONTRACT 

ACTIONS 

5.102 [Amended] 

■ 2. Amend section 5.102 by removing 

from paragraph (a)(5)(ii) ‘‘GPE;’’ and 

adding ‘‘GPE; or’’ in its place. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 3. Amend section 52.213–4 by 

revising the date of the clause; and 

removing from paragraph (a)(1)(v) ‘‘(Feb 

2006)’’ and adding ‘‘(June 2008)’’ in its 

place. 

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