schertzer

Vern, Thanks so much for your insight, really helps!

Thank you too all for your comments. Specifically to answer Vern's questions. Is your contract for ongoing maintenance of multiple tasks for a specified period, or for completion of a specific maintenance task by a specified date? ---The contract is for completion of specific maintenance tasks by a specified date. You are looking at CPIF, right? You are setting up two fees: (1) cost and (2) schedule, right? --Yes, looking at CPIF and are setting up 2 fees, cost and schedule. Are you are setting a "target" fee of 2 percent of cost for each or a minimum fee of 2 percent for each? If those are your targets, what is your minimum? --we're thinking about setting a target fee of 2% of cost for each (cost and schedule). Our minimum would be 0% for both. Your maximum fee for each is 4 percent, for a total maximum fee of 8 percent, right? --correct What is the share ratio? --share ratios: overrun 40/60, under run 60/40 Thanks so much!

We are trying to determine the incentive fee structure for our MAC IDIQ software maintenance contract. We are looking to incentivize cost and schedule, considering a 2 % target for both and 2 % incentive fee for both, for a total of 8% fee possible vice a 6% on our CPFF CLINS. This would be a reduction in total fee on both our CPIF and CPFF clins from our previous contracts. Does this incentive fee structure make sense for software maintenance contracts? Does this sound consistent with current Industry practices? With upcoming budgets cuts we are looking to cut down on fee while still incentivizing the Contractor. Any help would be great. If anyone knows of any current software maintenance CPIF contracts that would be good to look at, please let us know. Thanks so much for your help!