[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR16.402-3]

[Page 304]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 16--TYPES OF CONTRACTS--Table of Contents
 
                    Subpart 16.4--Incentive Contracts
 
Sec. 16.402-3  Delivery incentives.

    (a) Delivery incentives should be considered when improvement from a 
required delivery schedule is a significant Government objective. It is 
important to determine the Government's primary objectives in a given 
contract (e.g., earliest possible delivery or earliest quantity 
production).
    (b) Incentive arrangements on delivery should specify the 
application of the reward-penalty structure in the event of Government-
caused delays or other delays beyond the control, and without the fault 
or negligence, of the contractor or subcontractor.