Federal activity overview — Award-Term Contract
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Award-Term Contract Government Contracts & Federal Records
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An incentive contract where the contractor can earn additional periods of performance (award terms) based on excellent performance evaluations. The total contract length extends as a reward for sustained high performance.
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FAR 16.401(e)
Used for service contracts where continuity of performance is valuable and the government wants to incentivize long-term excellence. Common in facilities management, IT services, and base operations support.
Advantages: Strong long-term performance incentive, reduces re-competition costs. Disadvantages: Potential for contractor complacency, complex evaluation process, reduced competition over time.
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Bureauify. (2026). Award-Term Contract — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/award-term-contract
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