XL EagleCPAF (Cost-Plus-Award-Fee)
CPAF stands for Cost-Plus-Award-Fee. A cost-plus-award-fee contract reimburses allowable costs, may pay a small base fee, and offers an award fee pool. The government grades the contractor during set evaluation periods and decides how much of the pool is earned.
Award fee decisions are based on a written plan that lists what will be judged, such as quality, schedule and responsiveness. The decision is the government's call and generally cannot be disputed.
Why it matters to a small contractor
Award fee jobs reward great service and strong communication. If you sub on one, your crew's work feeds straight into the prime's score, so expect close oversight and frequent check-ins.
Example
An award fee pool is $60,000 per six-month period. The contractor scores very good and earns 80 percent, or $48,000, for that period.
CPAF: common questions
Can I appeal a low award fee?
Usually not through the disputes process. The award fee decision is a unilateral government judgment. You can ask for feedback to improve next period.
Is unearned award fee rolled into the next period?
Generally no. Fee not earned in a period is normally lost.
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