What is award fee in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: award fee

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A fee added to a pricing arrangenent as an incentive and paid if a supplier meets certain predefined performance targets.

Smart SAP Assistant

• Key Concepts: 
  Award fee is a payment made to a contractor for successfully completing a project or task. It is a type of incentive payment that is used in public sector procurement. It is usually based on the contractor's performance and the quality of the work they have done.
  
  How to use it: 
  In SAP PSM-GPR Procurement for Public Sector, award fee can be used to incentivize contractors to complete projects or tasks on time and to a high standard. The award fee can be set up in the system and will be paid out when the contractor meets the criteria set out in the contract.
  
  Tips & Tricks: 
  When setting up an award fee, it is important to ensure that the criteria for payment are clearly defined and that the contractor understands what they need to do in order to receive the payment. It is also important to ensure that the award fee is fair and reasonable for both parties.
  
  Related Information: 
  For more information on award fees, please refer to SAP's documentation on public sector procurement. Additionally, there are many resources available online that provide more detailed information on how to use award fees in public sector procurement.