Acquisition Letter No. AL-1997-08

Performance-Based Incentives

Office of Management

September 22, 2020
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Acquisition Letters (ALs) are issued under the authorities of the Senior Procurement Executives of DOE and NNSA. ALs are intended for use by procurement professionals of DOE and NNSA, primarily Contracting Officers, and other officials involved in the acquisition process. Only DOE and NNSA Contracting Officers make definitive interpretations of how ALs affect DOE and NNSA contracts and related procedures. ALs are effective upon issuance and until rescinded.

Performance-Based Incentives

AL 1997-08 (Archived)

12/08/1997

What is the purpose of this AL?

The purposes of this AL are to: (1) provide guidance on structuring performance­ based incentive (PBI) arrangements in the Depa1iment of Energy Performance-Based Management Contracts (PBMCs) and management and integration (M&I) contracts; (2) establish general requirements for formal administrative processes and procedures at each contracting activity relating to performance-based incentives; and (3) provide guidance on the requirements pertaining to Heads of Contracting Activity (HCA) waiver requests from Headquarters performance-based incentive approvals.