As prescribed in 1816.406-70(e), the contracting officer may insert the clause at 1852.216-85, Estimated Cost and Award Fee, in award-fee solicitations and contracts. When the contract includes performance incentives, use Alternate I. When the clause is used in a fixed-price award fee contract, it shall be modified to delete references to base fee and to reflect the contract type.
ALTERNATE I (SEP 1993)
As prescribed in 1816.406-70(e), insert the following sentence at the end of the clause:
The maximum positive performance incentive is $ . The maximum negative performance incentive is (1) .
(1) For research development hardware contracts, insert [equal to total earned award fee (including any base fee)]. For production hardware contracts, insert [$total potential award fee amount, including any base fee)].
(End of clause)