Contractor Fee Payments
In the interest of furthering transparency in its government operations, the Department
of Energy’s Office of Environmental Management (EM) herein is releasing information
relating to fee payments under its major cost-reimbursable contracts. Charts delineating
fees that are paid under cost-plus-award-fee (CPAF), cost-plus-incentive-fee (CPIF),
and cost-plus-fixed-fee (CPFF) contracts are listed by site location in the following
hyperlinks.
With CPFF contracts, the fee is negotiated and fixed at the inception of the contract.
The fixed fee will not vary with the actual costs that the contractor incurs. In
general, the contractor earns fee either by completing the work called for in the
contract or devoting a specified level of effort for a stated time period (FAR 16.306).
Unlike CPFF contracts, the fees in CPAF and CPIF contracts are not fixed at the
outset of the contract, but instead depend on the performance of the contractor.
CPIF contracts may provide for performance and delivery incentives as well as a
formula that provides the fee that is initially negotiated and adjusted based on
the relationship of total allowable cost to the total target cost. CPIF contracts
specify a target cost, a target fee, minimum and maximum fees and a fee adjustment
formula. The formula provides, within limits, for an increase in the fee paid to
the contractor above the target fee when total allowable costs are less than the
target cost. The formula also provides for a decrease in fee below the target fee
when the total allowable costs exceed the target cost. This variation in fee provides
an incentive for the contractor to manage the contract effectively. If the total
allowable costs are greater to or less than the range of costs within which the
fee adjustment formula operates, the Contractor will earn the minimum or maximum
fee, respectively (FAR 16.405-1). In addition, CPIF contracts may allow for delivery
or performance incentive fees, where incentive fees are paid for meeting a contract
performance requirement or a contract milestone.
CPAF contracts are a special type of incentive contract where the fee may include
a base amount that is fixed at the inception of the contract and an award amount
that the contractor may earn in whole or in part during performance to provide motivation
for excellence in such as areas as quality, timeliness, technical ingenuity, and
cost-effective management. The amount of award fee to be paid in any given performance
period is determined by the Government’s judgmental evaluation of the contractor’s
performance in terms of the criteria stated in the contract. This determination
and the methodology for determining the award fee are unilateral decisions that
are made solely at the discretion of the Government (FAR 16.405-2).
In some cases, DOE EM contracts allow for provisional payment of CPIF and CPAF fees,
such as for the partial completion of an incentive or the completion of milestones
or other performance criteria as specified by the contract or in a Performance Evaluation
and Measurement Plan. Provisional payments must be repaid to the Government, in
whole or in part, if the incentive is not successfully completed.
The charts in the accompanying hyperlinks provide the total fee that is available
under the contract, the fee that is available by Fiscal Year, and the fee paid to
the contractor by Fiscal Year. The Department of Energy, Office of Environmental
Management, Office of Contract Assistance will review the fee charts quarterly and
revisions will be made as required.
Carlsbad Field Office
Waste Isolation Pilot Plant Operations 
Small Sites
SLAC Environmental Remediation
SPRU Deactivation, Demolition, and Removal of Contaminated Facilities
SPRU Environmental Remediation/Waste Management Services
West Valley Demonstration Project Phase 1
West Valley Development Project Interim End State
MOAB Uranium Mill Tailings Remedial Action
Idaho Operations Office
Advanced Mixed Waste Treatment Project
Idaho Cleanup Project
Oak Ridge Operations
East Tennessee Technology Park
Uranium 233 Processing
Transuranic Waste Processing - Wastren
ORNL Hot Cells Project
ORNL Facilities Demolition and Disposal Project
Office of River Protection
Laboratory Analytical Services and Testing
Tank Operations
Waste Treatment Plant Design & Construction
Portsmouth Paducah Project Office
Paducah Remediation - LATA of Kentucky
Paducah Infrastructure Support
Portsmouth D & D
Operation of DUF6
Portsmouth Facility Support Services
Richland Operations Office
Occupational Health Services
Infrastructure and Site Services Support Contract
River Corridor Closure
Plateau Remediation
Savannah River Site Office
Site Management and Operations
Liquid Waste Processing
Salt Waste Processing Facility
Comprehensive Security Services
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