Other

Agencies use additional periods of performance, known as award term incentives, to motivate vendors to deliver better performance, usually in service contracts with objective performance measures. Award Terms may be awarded using standardized scoring methodologies in performance evaluations and are most impactful when care is taken to guard against grade-inflation, relaxed rating standards and over reliance on subjective performance measures. When used, award terms should be administered separate and distinct from traditional option periods and award fees.