Award Fee Contract
In the development of a new disruptive app, your project management organization is deciding contract types to promote good practices among some sellers as well as to give them a preferential treatment. Which of the following should be taken into account before setting an award fee contract?
A. Award fee would be a cost sharing formula if the final cost is higher than original estimated costs.
B. Award fee would be earned based on customer decision and satisfaction.
C. Award fee is generally subject to appeals.
D. Award fee would be earned based on objective performance criteria incorporated into the contract.