All or Nothing Performance Type Contracts? Not as Many as You Think

Overview of Contract Types, which do not require Contractors to COMPLETE any scope in order to get allowable costs reimbursed by the Government (oversimplified):

CPFF Term - Contractor loses fee if ordered LOE is not delivered, all allowable costs are reimbursed up to obligated estimated cost ceiling.  Negative CPAR Potential: level of effort was not provided timely

CPFF Completion - Contractor loses Fee if items are not complete, all allowable costs are reimbursed up to obligated estimated cost ceiling. Negative CPAR Potential: Contractor did not complete the scope on schedule; hence fee was not paid, hence the rating is below Satisfactory

CPAF - Contractor loses Fee if Award Fee evaluation per Evaluation metrics is unsatisfactory, all allowable costs are reimbursed up to obligated estimated cost ceiling. Negative CPAR evaluation, which could result: Contractor did not complete the scope to merit award fee; hence fee was not paid/reduced, hence the rating is below Satisfactory or other - Award Fee Evaluation mirrors CPAR in some ways.

CPIF – Contractor loses fee if target cost is exceeded within the contract period.  No Completion.   Must demonstrate Best Effort towards meeting scope objectives within period of time within estimated cost.  The fee is not adjusted for performance unless the formula for target fee and adjustments is based not only on cost but also on performance incentives (multiple incentives arrangements FAR 16.402-4). All allowable costs reimbursed up to obligated estimated cost ceiling.  Negative CPAR Potential: Contractor did not make best effort to complete the scope, e.g. [insert valid examples]. N.B. Hard to justify if the performance objectives did not include relationship between performance targets and fee. Fee may still get paid above target if costs are below target at the end of the contract.

T&M -No completion, Level of Effort.  Disallowed costs if labor does not meet labor category quals.  Negative CPAR Potential:  level of effort was not provided timely and labor did not meet qualifications).

If you want to have a "Get Paid All or Nothing" performance contract, then Fixed Price/Unit Price is the way to go, but you must know precisely what you want and you must know precisely how you will inspect and determine acceptability (i.e acceptability criteria).

Change my mind!