Node A6 · Acronym decoder
CPAF
Cost-Plus-Award-Fee
What it actually means
A cost-reimbursement contract where the contractor earns a fee based on the government's periodic, largely subjective evaluation of performance against award-fee criteria. It buys motivation on dimensions that are hard to write objective incentives for — responsiveness, management quality — at the price of running award-fee boards every period.
Where you'll meet it
Development and services contracts where performance quality matters but is hard to specify numerically.