Federal activity overview — Fixed-Price Award Fee
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A glossary tracked by Bureauify. See sources and related records below.
Fixed-Price Award Fee Government Contracts & Federal Records
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A fixed-price contract with an award fee provision. The contractor earns a base amount plus an additional award fee based on periodic government evaluations of performance against subjective criteria.
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FAR 16.404
Used when the government wants to motivate excellent performance through financial incentives beyond the fixed price, particularly for service contracts with quality-dependent outcomes.
Advantages: Motivates superior performance, government retains evaluation discretion. Disadvantages: Subjective evaluation criteria can cause disputes, added administrative cost for fee evaluations.
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Bureauify. (2026). Fixed-Price Award Fee — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/fixed-price-award-fee
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