A Cost plus Award Fee (CPAF) Contract is one of the Reimbursable Contract types by which an owner is to pay a fee based on the contractor’s work performance. In some contracts, the fee is determined subjectively by an awards fee based upon objective performance metrics. (e.g., An aircraft development contract, a contractor may be paid award fees if the contractor achieves certain speed, range, or payload capacity goals.)
Related Definitions in the Project: The Project Contract
