A new way to assess contractors

The Obama administration is giving agencies a new, standardized way to assess contractors’ work on award-fee or cost-reimbursement contracts. Under the system, contractors will receive bonus money only if they meet or exceed specific preset objectives.

Adjectival ratings Award-fee pool available Description
Excellent 91 to 100 percent Contractor has exceeded almost all preset objectives of the contract
Very good  76 to 90 percent  Contractor has exceeded many preset objectives of the contract
Good 51 to 75 percent  Contractor has exceeded some preset objectives of the contract
Satisfactory No more than 50 percent    Contractor has met overall criteria
Unsatisfactory 0 percent Contractor failed to meet overall criteria

Source: Federal Acquisition Regulation

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Reader comments

Tue, Nov 17, 2009 Richmond, VA

Looks like if I do the job I signed up to do, I only get half my fee. If I’m superman and exceed almost all objectives, I get the amount agreed to. In other words, I either put in large fees or I give them mediocre objectives to make a reasonable fee. What a crock!

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