Government Contracts Final Rule Updates EPA’s Award Term Incentive Policy
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Wednesday, April 29, 2020

Final Rule Updates EPA’s Award Term Incentive Policy

By Government Contracts Editorial Staff

The Environmental Protection Agency has finalized a proposed rule (¶70,053.30) amending EPA Acquisition Regulation award term incentive policies and procedures. Award terms are a form of an incentive contract that offers additional periods of performance without a new competition, rather than additional profit or fee as a reward for achieving prescribed performance measures. To assist contracting officers, the agency has amended the EPAAR to clearly state the requirements needed to successfully award and earn award terms. Accordingly, the rule amends EPAAR 1516.401-170, EPAAR 1516.401-270, EPAAR 1516.406, and EPAAR 1552.216-78 to set forth the overall framework governing award term incentives. The changes prescribe performance measures and outline the acceptable quality levels a contractor must achieve to become eligible for an award term. For the text of the rule, which went into effect on March 30, 2020, see ¶70,050.81.

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