FAR and DFARS › DFARS Part 216: Types of Contracts › Subpart 216.4
DFARS 216.401-71 Objective criteria.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section tells contracting officers to use objective criteria as much as possible when measuring contract performance, and notes that these criteria are tied to cost-plus-incentive-fee and fixed-price-incentive contracts. If objective criteria exist but the Government also wants to reward subjective performance, the section says a multiple-incentive contract combining objective incentives and subjective award-fee criteria is most appropriate.
Applies to: Contracting officers measuring contract performance
What it requires
- Use objective criteria to the maximum extent possible to measure contract performance
Key terms: objective criteria · cost-plus-incentive-fee · fixed-price-incentive · multiple-incentive contract · award-fee criteria
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(1) Contracting officers shall use objective criteria to the maximum extent possible to measure contract performance. Objective criteria are associated with cost-plus-incentive-fee and fixed-price-incentive contracts.
(2) When objective criteria exist but the contracting officer determines that it is in the best interest of the Government also to incentivize subjective elements of performance, the most appropriate contract type is a multiple-incentive contract containing both objective incentives and subjective award-fee criteria (i.e., cost-plus-incentive-fee/award-fee or fixed-price-incentive/award-fee).
(3) See PGI 216.401(e) for guidance on the use of award-fee contracts.
Sections it refers to
- 216.401 General.
← 216.401 General. · 216.402 Application of predetermined, formula-type incentives. →
Rule changes for DFARS Part 216
- Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002) ↗ · final rule 2025-08-25 · effective 2025-10-01
- Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002) ↗ · proposed 2025-01-17 · comments due 2025-03-18
- Defense Federal Acquisition Regulation Supplement: Task Order and Delivery Order Contracting for Architectural and Engineering Services (DFARS Case 2023-D007) ↗ · final rule 2024-12-18 · effective 2024-12-18
- Defense Federal Acquisition Regulation Supplement: Task Order and Delivery Order Contracting for Architectural and Engineering Services (DFARS Case 2023-D007) ↗ · proposed 2024-07-29 · comments due 2024-09-27
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.