PGI 216.405-1 Cost-plus-incentive-fee contracts
Subsection DFARS Procedures, Guidance, and Information
Facts
- Citation
- PGI 216.405-1
- Type
- Subsection
- Supplements
- FAR 16.405-1 Cost-plus-incentive-fee contracts
- Text as of
- DFARS PGI Change May 7, 2026
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
Give appropriate weight to basic acquisition objectives in negotiating the range of fee and the fee adjustment formula. For example—
(1) In an initial product development contract, it may be appropriate to provide for relatively small adjustments in fee tied to the cost incentive feature, but provide for significant adjustments if the contractor meets or surpasses performance targets; and
(2) In subsequent development and test contracts, it may be appropriate to negotiate an incentive formula tied primarily to the contractor's success in controlling costs.
Quick answers
What is PGI 216.405-1?
PGI 216.405-1 is a subsection of the DFARS Procedures, Guidance, and Information, titled "Cost-plus-incentive-fee contracts".
Are changes to PGI 216.405-1 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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