12 2 STA T .45 52 PUBLIC LA W 11 0– 41 7—O CT. 14 , 200 8(2)establi s h sta nd a r ds fo r identif y in g the a p propriate le v el of offi c ials a u thori z ed to approve the use of a w ard and incentive fees in new contracts
( 3 ) provide guidance on the circu m stances in which con - tractor performance may be j udged to be ‘ ‘e x cellent ’ ’ or ‘‘supe- rior’’ and the percentage of the available award fee which contractors should be paid for such performance; ( 4 ) establish standards for determining the percentage of the available award fee , if any, which contractors should be paid for performance that is judged to be ‘‘acceptable’’, ‘‘aver- age’’, ‘‘expected’’, ‘‘good’’, or ‘‘satisfactory’’; ( 5 ) ensure that no award fee may be paid for contractor performance that is judged to be below satisfactory performance or performance that does not meet the basic re q uirements of the contract; ( 6 ) provide specific direction on the circumstances, if any, in which it may be appropriate to roll over award fees that are not earned in one award fee period to a subsequent award fee period or periods; ( 7 ) ensure consistent use of guidelines and definitions relating to award and incentive fees across the F ederal G overn- ment; ( 8 ) ensure that each executive agency — ( A ) collects relevant data on award and incentive fees paid to contractors; and ( B ) has mechanisms in place to evaluate such data on a regular basis; ( 9 ) include performance measures to evaluate the effective- ness of award and incentive fees as a tool for improving con- tractor performance and achieving desired program outcomes; and ( 10 ) provide mechanisms for sharing proven incentive strategies for the acquisition of different types of products and services among contracting and program management offi- cials . (c) G UIDANCEFORD E P AR TM ENT OF DEFEN S E.— T he Department of Defense shall continue to be subject to guidance on award and incentive fees issued by the S ecretary of Defense pursuant to section 814 of the J ohn W arner N ational Defense Authorization Act for Fiscal Y ear 2007 ( P ublic L aw 109 – 364; 120 Stat. 2321). (d) EX ECUTI V EA G ENC Y DEFINED.— I n this section, the term ‘‘executive agency’’ has the meaning given such term in section 4(1) of the O ffice of Federal Procurement Policy Act (41 U .S. C . 403(1)). SEC.86 8. MIN IMI Z IN GABU SE OF COMME R CIA L SER V ICES I T EM AUT H ORIT Y . (a) R EGU L ATIONS RE Q UIRED.—Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation shall be amended with respect to the procurement of commercial services. (b) APPLICA B ILITY OF COMMERCIAL PROCEDURES.— (1) SERVICES OF A TYPE SOLD IN MAR K ETPLACE.—The regula- tions modified pursuant to subsection (a) shall ensure that services that are not offered and sold competitively in substan- tial quantities in the commercial mar k etplace, but are of a type offered and sold competitively in substantial quantities Deadlin e .
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