Which of the following does not accurately describe a fixed-price contract with Award Fee:

1) The Award Fee portion of a Fixed-Price contract with Award Fee is paid in addition to the Fixed-Price if the contractor meets or exceeds the Award Fee Plan criteria.

2)Award-fee provisions may be used in fixed-price contracts when the government wishes to motivate a contractor and other incentives cannot be used because contractor performance cannot be measured objectively.

3) Fixed-Price Contracts with Award Fee include normal profit for satisfactory performance.

4) The award fee portion is earned only when the final cost is less than the price stated i the contract.