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Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Proposed Rules
Evaluation of Offers Subject to an Economic Price Adjustment Clause DATE
Offers shall be evaluated without an amount for an economic price adjustment being added. Offers will be rejected that1 increase the ceiling stipulated; 2 limit the downward adjustment; or 3 delete the economic price adjustment clause. If the offer stipulates a ceiling lower than that included in the solicitation, the lower ceiling will be incorporated into any resulting contract.
End of provision 1252.21671

Determination of Award Fee.

As prescribed in 1216.40670a, insert the following clause:
Determination of Award Fee DATE
a The Government shall evaluate Contractor performance at the end of each specified evaluation period to determine the amount of award. The contractor agrees that the amount of award and the award fee determination methodology are unilateral decisions to be made at the sole discretion of the Government.
b Contractor performance shall be evaluated according to the Award Fee Plan. The Contractor shall be periodically informed of the quality of its performance and areas in which improvements are expected.
c The contractor shall be promptly advised, in writing, of the determination and reasons why the award fee was or was not earned. The Contractor may submit a performance self-evaluation for each evaluation period. The amount of award is at the sole discretion of the Government but any self-evaluation received within lll insert number days after the end of the current evaluation period will be given such consideration, as may be deemed appropriate by the Government.
d The amount of award fee that can be awarded in each evaluation period is limited to the amounts set forth at lllll identify location of award fee amounts. Award fee that is not earned in an evaluation period cannot be reallocated to future evaluation periods.
End of clause lotter on DSK11XQN23PROD with PROPOSALS3

1252.21672

Award Fee Plan.

As prescribed in 1216.40670b, insert the following clause:
Award Fee Plan DATE
a An Award Fee Plan shall be unilaterally established by the Government based on the criteria stated in the contract and used for the
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determination of award fee. This plan shall include the criteria used to evaluate each area and the percentage of award fee, if any, available for each area.
A copy of the plan shall be provided to the Contractor lllll insert number calendar days prior to the start of the first evaluation period.
b The criteria contained within the Award Fee Plan may relate to: 1
Technical including schedule requirements, if appropriate; 2
Management; and 3 Cost.
c The Award Fee Plan may, consistent with the contract, be revised unilaterally by the Government at any time during the period of performance.
Notification of such changes shall be provided to the Contractor lllll insert number calendar days prior to the start of the evaluation period to which the change will apply.

1252.21674

Settlement of Letter Contract.

As prescribed in 1216.6034, insert the following clause:
Settlement of Letter Contract DATE

As prescribed in 1216.40670c, insert the following clause:

a This contract constitutes the definitive contract contemplated by issuance of letter contract lllllllllllllll insert number dated lllllllllllllll insert effective date. It supersedes the letter contract and its modification numbers lllllllllllllll insert numbers and, to the extent of any inconsistencies, governs.
b The costs and fees, or prices, established in this definitive contract represents full and complete settlement of letter contract lllllllllllllll insert number and modification numbers lllllllllllllll insert numbers. Payment of the agreed upon fee or profit withheld pending definitization of the letter contract, may commence immediately at the rate and times stated within this contract.

Distribution of Award Fee DATE

End of clause
a The total amount of award fee available under this contract is assigned according to the following evaluation periods and amounts Evaluation Period:
Available Award Fee:

1252.21770

End of clause 1252.21673

Distribution of Award Fee.

Contracting Officer insert appropriate information b After the Contractor has been paid 85 percent of the base fee and potential award fee, the Government may withhold further payment of the base fee and award fee until a reserve is set aside in an amount that the Government considers necessary to protect its interest. This reserve shall not exceed 15 percent of the total base fee and potential award fee or $150,000, whichever is less. Thereafter, base fee and award fee payments may continue.
c In the event of contract termination, either in whole or in part, the amount of award fee available shall represent a prorata distribution associated with evaluation period activities or events as determined by the Government.
d The Government will promptly make payment of any award fee upon the submission by the Contractor to the Contracting Officers Representative, of a public voucher or invoice in the amount of the total fee earned for the period evaluated. Payment may be made without using a contract modification.
End of clause
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Guarantee.

As prescribed at 1217.7001a, insert the following clause:
Guarantee DATE
a In the event any work performed or materials furnished by the Contractor prove defective or deficient within 60
days from the date of redelivery of the vessels, the Contractor, as directed by the Contracting Officer and at its own expense, shall correct and repair the deficiency in accordance with the contract terms and conditions.
b If the Contractor or any subcontractor has a guarantee for work performed or materials furnished that exceeds the 60-day period, the Government shall be entitled to rely upon the longer guarantee until its expiration.
c With respect to any individual work item identified as incomplete at the time of redelivery of the vessels, the guarantee period shall run from the date the item is completed.
d If practicable, the Government shall give the Contractor an opportunity to correct the deficiency.
1 If the Contracting Officer determines it is not practicable or is otherwise not advisable to return the vessels to the Contractor, or the Contractor fails to proceed with the repairs promptly, the Contracting Officer may direct that the repairs be performed elsewhere, at the Contractors expense.

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