Use the table in this subtask to enter the award fee information for this project modification. Award fees are usually stipulated during contract negotiation. They are generally awarded without regard to other fixed fees or billable labor rates. Award fees may be given for quality, timeliness, technical ingenuity, or cost-effective management. Generally there is a period of time over which a project is evaluated for the award fee that is known as the award fee period. Most companies elect to accrue some of this award fee during the award fee period. You can use this screen to enter the details of the award fee.
The Compute Revenue process (Projects\Process\Revenue) uses the amounts entered in the Contract Award Fee and Funded Award Fee columns to compute award fee for the award fee period. Use the Contract Award Fee column to enter an estimated award fee for the award fee period. The Compute Revenue process uses the amount entered in the Contract Award Fee column to determine the amount of award fee to accrue during the award fee period based on the accrual method selected in the Revenue Information screen (Projects\Maintain\Revenue). Use the Funded Award Fee column to enter the award fee once the final amount has been determined by the customer. The Compute Revenue process adjusts the award fee to the amount entered in the Funded Award Fee column the next time the Compute Revenue process is executed.
You must establish an award fee period for each award fee entered. Each award fee period must be unique and cannot overlap. You cannot cross fiscal years during an award fee period. If your award fee period must cross fiscal years, you can set up an award fee for each fiscal year and estimate the amount of contract value award fee for each fiscal year. All revenue computations are calculated by award fee period.
Once you have established an award fee period and saved the screen, you will not be able to change the starting period and subperiod for the award fee period.
The amounts entered in the Contract Award Fee and Funded Award Fee columns serve as ceilings for the amount of award fee accrued for the award fee period. No ceilings are available for award fee in the Total Ceil screen in the Project User Flow (Projects\Maintain\Project).
You must have set up a record in the Revenue Information screen in order to enter award fee information in this screen because you can enter award fee only at the revenue level of the project. You should establish your award fee in this screen and select an accrual method in the Revenue Information screen before you compute revenue for the award fee period.
This non-editable field displays the modification ID, which defaults from the main screen.
Enter the award fee description in this field. The default for this field is the modification description from the main screen.
Enter, or use Lookup to select, the fiscal year for which you want to establish the award fee period. Once you have entered a fiscal year in this field and saved the record, you cannot change the fiscal year.
The fiscal year entered in this field is the fiscal year for the award fee period. You cannot enter an award fee period that involves two fiscal years. You must set up two award fee periods using each fiscal year if you have a multiple fiscal year award fee period. Estimate the amount of contract award fee that will be necessary for each fiscal year. You can use the Award Fee Adjust Amount field in the Revenue Info screen to adjust award fee amounts from prior years.
Enter, or use Lookup to select, the starting period for the award fee period. The period must exist in the Accounting Periods screen (Accounting\Maintain\Time Periods). Once you have entered a starting period in this field and have saved the record, you cannot change the starting period.
Enter, or use Lookup to select, the starting subperiod for the award fee period. The subperiod must exist in the Subperiods screen (Accounting\Maintain\Time Periods). Once you have entered a starting subperiod in this field and have saved the record, you cannot change the starting subperiod.
Enter, or use Lookup to select, the ending period for the award fee period. The period must exist in the Accounting Periods screen (Accounting\Maintain\Time Periods).
Enter, or use Lookup to select, the ending subperiod for the award fee period. The subperiod must exist in the Subperiods screen (Accounting\Maintain\Time Periods).
Enter the contract award fee amount for this award fee period. You should use this field to estimate the award fee amount for the award fee period.
The system uses the amount entered in this field to calculate award fee. The Compute Revenue process (Projects\Process\Revenue) uses the amount entered in this field as a ceiling for the award fee period.
This amount displays in the Award Fee subtask of the Revenue Information screen (Projects\Maintain\Revenue).
Enter the funded award fee amount in this field. You should enter an amount in this field when the final award fee amount has been determined for the award fee period. The Compute Revenue process (Projects\Process\Revenue) adjusts the cumulative award fee for the award fee period to the amount in this field the next time the Compute Revenue process is executed.
This amount displays in the Award Fee subtask of the Revenue Information screen (Projects\Maintain\Revenue).
* A red asterisk denotes a required field.
Changes to this subtask update the PROJ_MOD_AWARD_FEE table.