Calculators
Government Contract Award Fee Calculator
Calculate fee earned on a cost-plus-award-fee contract from estimated cost, base fee, award fee pool and performance score.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Pricing CPAF proposals
- Forecasting contract profitability
- Award fee period planning
- Government contracting training
About this tool
What the Government Contract Award Fee Calculator does
Cost-plus-award-fee (CPAF) contracts reimburse allowable costs and pay a fee made of a fixed base fee plus an award fee earned according to evaluated performance. The award fee is the pool multiplied by the percentage awarded in the evaluation.
Formula
- Base fee = cost × base fee %
- Award fee = cost × pool % × evaluation score
- Total fee = base + award
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Estimated allowable cost | $10,000,000 |
| Base fee | 1% |
| Award fee pool | 8% |
| Award fee earned (evaluation) | 85% |
| Result | Value |
|---|---|
| Total fee earned | $780,000 |
| Fee as share of cost | 7.80% |
| Award fee earned | $680,000 |
| Base fee | $100,000 |
| Total contract value | $10,780,000 |
How to read the result
Under US federal rules, award fee is not earned for performance rated below satisfactory; check the award fee plan.
Track evaluation criteria through each period rather than only at the review.
Estimates only. Official rates and rules change; confirm figures with the relevant agency before relying on them.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
A cost-reimbursement contract with a base fee plus a performance-based award fee.
By government evaluation of performance against the award fee plan criteria.
Base fee is fixed at award, though it may be zero on some contracts.
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