{"data":{"id":"us/48-cfr-16.402-4","jurisdiction":"us","citation":"48 CFR 16.402-4","heading":"16.402-4 Structuring multiple-incentive contracts.","body":"A properly structured multiple-incentive arrangement should—\n(a) Motivate the contractor to strive for outstanding results in all incentive areas; and\n(b) Compel trade-off decisions among the incentive areas, consistent with the Government's overall objectives for the acquisition. Because of the interdependency of the Government's cost, the technical performance, and the delivery goals, a contract that emphasizes only one of the goals may jeopardize control over the others. Because outstanding results may not be attainable for each of the incentive areas, all multiple-incentive contracts must include a cost incentive (or constraint) that operates to preclude rewarding a contractor for superior technical performance or delivery results when the cost of those results outweighs their value to the Government.","path":["Title 48—Federal Acquisition Regulations System","CHAPTER 1—FEDERAL ACQUISITION REGULATION","SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES","PART 16—TYPES OF CONTRACTS","Subpart 16.4—Incentive Contracts"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-48.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:29Z","sha256":"196a6352129c302b43f249eb26836d1f8c2524c82788db06e22ec18e512096da","source_id":"us-cfr","stale":true,"prev":"us/48-cfr-16.402-3","next":"us/48-cfr-16.403"},"notice":"GroundRules: Original legal text. Not legal advice."}