52856 Federal Register / Vol. 74, No. 197 / Wednesday, October 14, 2009 / Rules and Regulations 

(i) The amount of the offeror’s indirect 

costs and profit/fee applicable to the work to 

be performed by the subcontractor(s); and 

(ii) A description of the added value 

provided by the offeror as related to the work 

to be performed by the subcontractor(s). 

(3) If any subcontractor proposed under the 

contract, task order, or delivery order intends 

to subcontract to a lower-tier subcontractor 

more than 70 percent of the total cost of work 

to be performed under its subcontract, the 

offeror shall identify in its proposal— 

(i) The amount of the subcontractor’s 

indirect costs and profit/fee applicable to the 

work to be performed by the lower-tier 

subcontractor(s); and 

(ii) A description of the added value 

provided by the subcontractor as related to 

the work to be performed by the lower-tier 

subcontractor(s). 

(End of provision) 

52.215–23 Limitations on Pass-Through 

Charges. 

As prescribed in 15.408(n)(2), use the 

following clause: 

LIMITATIONS ON PASS-THROUGH 

CHARGES (OCT 2009) 

(a) Definitions. As used in this 

clause— 

Added value means that the 

Contractor performs subcontract 

management functions that the 

Contracting Officer determines are a 

benefit to the Government (e.g., 

processing orders of parts or services, 

maintaining inventory, reducing 

delivery lead times, managing multiple 

sources for contract requirements, 

coordinating deliveries, performing 

quality assurance functions). 

Excessive pass-through charge, with 

respect to a Contractor or subcontractor 

that adds no or negligible value to a 

contract or subcontract, means a charge 

to the Government by the Contractor or 

subcontractor that is for indirect costs or 

profit/fee on work performed by a 

subcontractor (other than charges for the 

costs of managing subcontracts and any 

applicable indirect costs and associated 

profit/fee based on such costs). 

No or negligible value means the 

Contractor or subcontractor cannot 

demonstrate to the Contracting Officer 

that its effort added value to the contract 

or subcontract in accomplishing the 

work performed under the contract 

(including task or delivery orders). 

Subcontract means any contract, as 

defined in FAR 2.101, entered into by a 

subcontractor to furnish supplies or 

services for performance of the contract 

or a subcontract. It includes but is not 

limited to purchase orders, and changes 

and modifications to purchase orders. 

Subcontractor, as defined in FAR 

44.101, means any supplier, distributor, 

vendor, or firm that furnishes supplies 

or services to or for a prime Contractor 

or another subcontractor. 

(b) General. The Government will not 

pay excessive pass-through charges. The 

Contracting Officer shall determine if 

excessive pass-through charges exist. 

(c) Reporting. Required reporting of 

performance of work by the Contractor 

or a subcontractor. The Contractor shall 

notify the Contracting Officer in writing 

if— 

(1) The Contractor changes the 

amount of subcontract effort after award 

such that it exceeds 70 percent of the 

total cost of work to be performed under 

the contract, task order, or delivery 

order. The notification shall identify the 

revised cost of the subcontract effort and 

shall include verification that the 

Contractor will provide added value; or 

(2) Any subcontractor changes the 

amount of lower-tier subcontractor 

effort after award such that it exceeds 70 

percent of the total cost of the work to 

be performed under its subcontract. The 

notification shall identify the revised 

cost of the subcontract effort and shall 

include verification that the 

subcontractor will provide added value 

as related to the work to be performed 

by the lower-tier subcontractor(s). 

(d) Recovery of excessive passthrough charges. If the Contracting 

Officer determines that excessive passthrough charges exist; 

(1) For other than fixed-price 

contracts, the excessive pass-through 

charges are unallowable in accordance 

with the provisions in FAR subpart 

31.2; and 

(2) For applicable DoD fixed-price 

contracts, as identified in 

15.408(n)(2)(i)(B), the Government shall 

be entitled to a price reduction for the 

amount of excessive pass-through 

charges included in the contract price. 

(e) Access to records. (1) The 

Contracting Officer, or authorized 

representative, shall have the right to 

examine and audit all the Contractor’s 

records (as defined at FAR 52.215–2(a)) 

necessary to determine whether the 

Contractor proposed, billed, or claimed 

excessive pass-through charges. 

(2) For those subcontracts to which 

paragraph (f) of this clause applies, the 

Contracting Officer, or authorized 

representative, shall have the right to 

examine and audit all the 

subcontractor’s records (as defined at 

FAR 52.215–2(a)) necessary to 

determine whether the subcontractor 

proposed, billed, or claimed excessive 

pass-through charges. 

(f) Flowdown. The Contractor shall 

insert the substance of this clause, 

including this paragraph (f), in all costreimbursement subcontracts under this 

contract that exceed the simplified 

acquisition threshold, except if the 

contract is with DoD, then insert in all 

cost-reimbursement subcontracts and 

fixed-price subcontracts, except those 

identified in 15.408(n)(2)(i)(B)(2), that 

exceed the threshold for obtaining cost 

or pricing data in accordance with FAR 

15.403–4. 

(End of clause) 

Alternate I (OCT 2009). As prescribed 

in 15.408(n)(2)(iii), substitute the 

following paragraph (b) for paragraph 

(b) of the basic clause: 

(b) General. The Government will not 

pay excessive pass-through charges. The 

Contracting Officer has determined that 

there will be no excessive pass-through 

charges, provided the Contractor 

performs the disclosed value-added 

functions. 

[FR Doc. E9–24586 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 16 

[FAC 2005–37; FAR Case 2008–008; Item 

VI; Docket 2009-0036, Sequence 1] 

RIN 9000–AL42 

Federal Acquisition Regulation; FAR 

Case 2008–008, Award Fee Language 

Revision 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are issuing an interim rule 

amending the Federal Acquisition 

Regulation (FAR) to implement section 

814 of the John Warner National 

Defense Authorization Act for Fiscal 

Year 2007, section 867 of the Duncan 

Hunter National Defense Authorization 

Act for Fiscal Year 2009, and the Office 

of Federal Procurement Policy guidance 

memorandum dated December 4, 2007, 

entitled Appropriate Use of Incentive 

Contracts. 

DATES: Effective Date: October 14, 2009. 

Comment Date: Interested parties 

should submit written comments to the 

Regulatory Secretariat on or before 

December 14, 2009 to be considered in 

the formulation of a final rule. 

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Federal Register / Vol. 74, No. 197 / Wednesday, October 14, 2009 / Rules and Regulations 52857 

ADDRESSES: Submit comments 

identified by FAC 2005–37, FAR case 

2008–008, by any of the following 

methods: 

•Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting ‘‘FAR 

Case 2008–008’’ into the field 

‘‘Keyword’’. Select the link that 

corresponds with FAR Case 2008–008. 

Follow the instructions provided to 

submit your comment. Please include 

your name, company name (if any), and 

‘‘FAR Case 2008–008’’ on your attached 

document. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(VPR), 1800 F Street, NW., Room 4041, 

ATTN: Hada Flowers, Washington, DC 

20405. 

Instructions: Please submit comments 

only and cite FAC 2005–37, FAR case 

2008–008, in all correspondence related 

to this case. All comments received will 

be posted without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Edward N. Chambers, Procurement 

Analyst, at (202) 501–3221 for 

clarification of content. Please cite FAC 

2005–37, FAR case 2008–008. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at (202) 501– 

4755. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This rule implements the provisions 

of section 814 of the John Warner 

National Defense Authorization Act for 

Fiscal Year 2007 (Public Law 109–364), 

section 867 of the Duncan Hunter 

National Defense Authorization Act for 

Fiscal Year 2009 (Public Law 110–417), 

and the Office of Federal Procurement 

Policy guidance memorandum dated 

December 4, 2007, entitled Appropriate 

Use of Incentive Contracts, which deal 

with award and incentive fee contract 

types, by amending and/or integrating 

where appropriate, FAR part 7, 

Acquisition Planning, and FAR part 16, 

Contract Types, to improve agency use 

and decision making when using 

incentive contracts. 

FAR part 16 has been amended to 

provide further guidance relative to: (1) 

Award fees being linked to acquisition 

objectives in the areas of cost, schedule, 

and technical performance, (2) The 

percentage of award fee available for 

prescribed narrative ratings, (3) Award 

fees not being earned if the contractor’s 

overall performance is judged to be 

below satisfactory, (4) The analysis 

required in determining whether to use 

an award or incentive fee type contract 

or not, (5) Award-fee plan content, (6) 

The prohibition of the use of the award 

fee rollover concept, (7) The 

requirements relative to award and 

incentive fee data collection and 

performance measures to evaluate such 

data, and a reference to FAR 7.105 for 

consideration of this information in 

acquisition planning, and (8) The 

publishing of best practices. 

The Councils are revising the 

following FAR provisions: 

(1) FAR 16.001 is revised to add 

definitions for the terms ‘‘Rollover of 

unearned award fee’’, ‘‘Award-Fee 

Board,’’ and ‘‘Fee-Determining Official 

(FDO)’’. This change is made to ensure 

that all parties understand what is 

meant by these terms, which are used in 

the new FAR 16.401(e). 

(2) FAR 16.404(a) and FAR 

16.404(a)(1) have been combined into 

16.404. FAR 16.404(a)(2) has been 

deleted from this section and is now 

covered in FAR 16.401(e)(3). 

(3) FAR 16.401(d) was changed with 

the existing content of this section being 

moved to FAR 16.401(e) and new 

content being added. This new content 

requires that a determination and 

finding be made justifying the use of an 

incentive or award-fee type contract. 

(4) FAR 16.401(e) has been added to 

require that award fees be linked to 

acquisition objectives in the areas of 

cost, schedule, and technical 

performance; that award fees not be 

earned if the contractor’s overall 

performance is judged to be below 

satisfactory; that award-fee 

determinations be documented in the 

contract file; that the determination and 

methodology for determining the award 

fee are unilateral decisions made solely 

at the discretion of the Government; and 

that all award-fee contracts have an 

award-fee plan that establishes the 

procedures and award-fee board for 

evaluating award-fee determinations. 

This new section also delineates what 

the required content shall be for all 

award-fee plans to include the use of 

adjectival ratings and associated 

descriptions as well as award-fee pool 

earned percentages now incorporated 

into the FAR in Table 16–1. This new 

paragraph also provides guidance 

relative to the use of the ‘‘rollover’’ 

concept. The ‘‘rollover’’ of unearned 

award fee from one evaluation period to 

another evaluation period is now 

prohibited. The Councils believe 

‘‘rollover’’ diminishes the effectiveness 

of the award-fee rating given for a 

specific evaluation period, since the 

unearned award fee could be earned by 

the contractor in a subsequent 

evaluation period. Further, the 

‘‘rollover’’ concept is used sparingly 

across the Federal Government and its 

limited use has been trending 

downward. 

(5) FAR 16.404(b) was deleted and the 

core content of this section is now 

included in FAR 16.401(e). The 

revisions require that a determination 

and finding be made based upon the 

criteria in FAR 16.401(e)(1) before 

utilizing an award-fee type contract. 

(6) FAR 16.405–2(a) is now FAR 

16.405–2 and it was revised to clarify 

that base fee can be included in a costplus-award-fee (CPAF) type contract at 

the discretion of the contracting officer. 

(7) FAR 16.405–2(b)(1) has been 

deleted in its entirety. The language 

relative to when an award-fee contract 

is suitable for use is in FAR 16.401(e)(1). 

(8) FAR 16.405–2(b)(2) has been 

deleted in its entirety. The language 

relative to award-fee criteria motivating 

contractor performance has been revised 

and moved to FAR 16.401(e)(3)(ii). 

(9) FAR 16.405–2(b)(3) has been 

deleted in its entirety. The language 

relative to award-fee evaluation 

intervals has been revised and moved to 

16.401(e)(3)(vi). 

(10) FAR 16.405–2(c) has been deleted 

and the intent of this section is now 

included in FAR 16.401(e)(5). The 

revision requires that no award-fee 

contract shall be awarded unless the 

limitations cited in this section are met. 

The limitations include compliance 

with FAR 16.301–3, FAR 16.401(e)(3), 

and a determination and finding that 

justifies the use of this contract type in 

accordance with the suitability items in 

FAR 16.401(e)(1). 

(11) The references utilized in FAR 

16.305 and FAR 16.402–1 were updated 

to accurately point to the correct FAR 

sections based upon the changes herein. 

(12) FAR 16.401(f) was added to 

require the collection of incentive- and 

award-fee data within the Federal 

Government. 

(13) FAR 16.401(g) was added to 

provide the Federal workforce with best 

practice type information relative to 

incentive- and award-fee contracting. 

These changes will affect contracts 

newly awarded. Any changes to existing 

contracts would be handled in 

accordance with FAR 1.108(d). 

This is a significant regulatory action 

and, therefore, was 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. 

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52858 Federal Register / Vol. 74, No. 197 / Wednesday, October 14, 2009 / Rules and Regulations 

B. Regulatory Flexibility Act 

The interim rule is not expected to 

have a significant economic impact on 

a substantial number of small entities 

within the meaning of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., 

because the guidance largely covers a 

broad range of aspects of award-fee 

contracting, whose upshot will be a 

more consistent use and administration 

of award fees Governmentwide which 

will provide a small benefit to all 

entities both large and small. In 

addition, the changes promulgated in 

this interim rule do not directly affect 

the current business processes of 

Federal contractors. In the matter of the 

rule’s prohibition on the rollover of 

unearned award fee, the Councils 

believe this will have a negligible 

impact on small businesses for the 

following reasons. First, award-fee 

contracts are largely the province of 

large businesses with large dollar 

contracts. Second, the ability to rollover 

unearned award fee may have caused 

evaluators in the past to be more 

conservative in their ratings because of 

their awareness that contractors may 

have a second opportunity to earn 

unearned award fees. 

Therefore, an Initial Regulatory 

Flexibility Analysis has not been 

performed. The Councils will consider 

comments from small entities 

concerning the affected FAR part 16 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 2008– 

008), 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. 

D. Determination to Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of Defense 

(DoD), the Administrator of General 

Services (GSA), and the Administrator 

of the National Aeronautics and Space 

Administration (NASA) that urgent and 

compelling reasons exist to promulgate 

this interim rule without prior 

opportunity for public comment. This 

action is necessary because section 867 

of the Duncan Hunter National Defense 

Authorization Act for Fiscal Year 2009 

(Public Law 110–417), enacted on 

October 14, 2008, requires that the FAR 

be revised to implement this provision 

by October 14, 2009. However, pursuant 

to Public Law 98–577 and FAR 1.501, 

the Councils will consider public 

comments received in response to this 

interim rule in the formation of the final 

rule. 

List of Subjects in 48 CFR Part 16 

Government procurement. 

Dated: October 5, 2009. 

Al Matera, 

Director, Acquisition Policy Division. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR part 16 as set forth 

below: 

PART 16—TYPES OF CONTRACTS 

■ 1. The authority citation for 48 CFR 

part 16 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. Add section 16.001 to read as 

follows: 

16.001 Definitions. 

As used in this part— 

Award-Fee Board means the team of 

individuals identified in the award-fee 

plan who have been designated to assist 

the Fee-Determining Official in making 

award-fee determinations. 

Fee-Determining Official (FDO) means 

the designated Agency official(s) who 

reviews the recommendations of the 

Award-Fee Board in determining the 

amount of award fee to be earned by the 

contractor for each evaluation period. 

Rollover of unearned award fee means 

the process of transferring unearned 

award fee, which the contractor had an 

opportunity to earn, from one 

evaluation period to a subsequent 

evaluation period, thus allowing the 

contractor an additional opportunity to 

earn that previously unearned award 

fee. 

■ 3. Amend section 16.305 by revising 

the third and fourth sentences to read as 

follows: 

16.305 Cost-plus-award-fee contracts. 

* * * See 16.401(e) for a more 

complete description and discussion of 

the application of these contracts. See 

16.301–3 and 16.401(e)(5) for 

limitations. 

■ 4. Amend section 16.401 by revising 

paragraph (d); and adding paragraphs (e) 

through (g) to read as follows: 

16.401 General. 

* * * * * 

(d) A determination and finding, 

signed by the head of the contracting 

activity, shall be completed for all 

incentive- and award-fee contracts 

justifying that the use of this type of 

contract is in the best interest of the 

Government. This determination shall 

be documented in the contract file and, 

for award-fee contracts, shall address all 

of the suitability items in 16.401(e)(1). 

(e) Award-fee contracts are a type of 

incentive contract. 

(1) Application. An award-fee 

contract is suitable for use when— 

(i) The work to be performed is such 

that it is neither feasible nor effective to 

devise predetermined objective 

incentive targets applicable to cost, 

schedule, and technical performance; 

(ii) The likelihood of meeting 

acquisition objectives will be enhanced 

by using a contract that effectively 

motivates the contractor toward 

exceptional performance and provides 

the Government with the flexibility to 

evaluate both actual performance and 

the conditions under which it was 

achieved; and 

(iii) Any additional administrative 

effort and cost required to monitor and 

evaluate performance are justified by 

the expected benefits as documented by 

a risk and cost benefit analysis to be 

included in the Determination and 

Findings referenced in 16.401(e)(5)(iii). 

(2) Award-fee amount. The amount of 

award fee earned shall be commensurate 

with the contractor’s overall cost, 

schedule, and technical performance as 

measured against contract requirements 

in accordance with the criteria stated in 

the award-fee plan. Award fee shall not 

be earned if the contractor’s overall cost, 

schedule, and technical performance is 

below satisfactory. The basis for all 

award-fee determinations shall be 

documented in the contract file to 

include, at a minimum, a determination 

that overall cost, schedule and technical 

performance is or is not at a satisfactory 

level. This determination and the 

methodology for determining the award 

fee are unilateral decisions made solely 

at the discretion of the Government. 

(3) Award-fee plan. All contracts 

providing for award fees shall be 

supported by an award-fee plan that 

establishes the procedures for 

evaluating award fee and an Award-Fee 

Board for conducting the award-fee 

evaluation. Award-fee plans shall— 

(i) Be approved by the FDO unless 

otherwise authorized by agency 

procedures; 

(ii) Identify the award-fee evaluation 

criteria and how they are linked to 

acquisition objectives which shall be 

defined in terms of contract cost, 

schedule, and technical performance. 

Criteria should motivate the contractor 

to enhance performance in the areas 

rated, but not at the expense of at least 

minimum acceptable performance in all 

other areas; 

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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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