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   <concept id="DFARS_216.402-2"
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            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">216.402-2</ph> Performance incentives.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p id="ZRIpxE" outputclass="List2" class="- topic/p ">(1) See PGI <xref href="PGI_216.402-2.dita#DFARS_PGI_216.402-2"
                  base="DFARS-PGI_PGI_216.402-2"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="216.402-2">216.402-2</xref> for
guidance on establishing performance incentives.</p>
         <p id="WkiOSf" outputclass="List2" class="- topic/p ">(2) Contracting officers
shall ensure requirements about the payment of incentive fees or
the imposition of penalties are included in the solicitation for
a contract for the engineering and manufacturing development or
production of a weapon system, including embedded software, if the
program manager or comparable requiring activity official exercising
program manager responsibilities includes—</p>
         <p id="pBWzob" outputclass="List3" class="- topic/p ">(i) Provisions for the payment
of incentive fees to the contractor, based on achievement of design
specification requirements for reliability and maintainability of
weapons systems under the contract; or</p>
         <p id="WQKCDf" outputclass="List3" class="- topic/p ">(ii) The imposition of penalties to be paid by the contractor to the Government for failure to achieve such design specification requirements (10 U.S.C. 4328).</p>
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