Which action could be a corrective action to address TIP violations and may affect the award fee?

• A. Loss of award fee
• B. Extend the contract term
• C. Increase the subcontracting pool
• D. Award an additional incentive fee

Answer: (A)

When corrective actions are used for TIP violations, the goal is to address the deficiency and ensure future compliance, while maintaining accountability. Tying the award fee to performance means a contractor’s compensation can be adjusted based on how well they meet integrity and compliance requirements, including TIP controls. Withholding or reducing the award fee directly reflects the penalties for noncompliance and creates a clear incentive for the contractor to implement an effective corrective action plan, correct practices, and demonstrate sustained compliance.

The other options don’t function as corrective actions tied to TIP issues: extending the contract term changes timing but not accountability; increasing the subcontracting pool is unrelated to addressing TIP violations; awarding an additional incentive fee would reward performance rather than drive remediation.