and maintainability as a performance requirement in the contract. (2) Exception If the program manager determines that reliability or maintainability should not be a performance requirement in a contract, the program manager shall submit justification for such decision in writing to the milestone decision authority for the program. (3) Revised guidance on source selection criteria The Secretary shall revise guidance in the Defense Federal Acquisition Regulation Supplement to provide sufficient emphasis to sustainment factors in the process for source selection. The revised guidance shall include reliability and maintainability as factors or significant subfactors to consider in the evaluation of competitive proposals. (d) Contract performance (1) In general The Secretary shall establish processes and best practices across the Department of Defense for responding to the positive or negative performance of a contractor in meeting the sustainment requirements of a development or production contract for a weapon system. The Secretary shall encourage the use of incentive fees authorized in paragraph (2) in all development and production contracts for weapons systems. The Secretary shall take the necessary actions to enable program offices to execute the recovery options required for each development and production contract under paragraph (3). (2) Authority for incentive fees The Secretary of Defense is authorized to pay an incentive fee to a contractor that exceeds the reliability or maintainability requirements of a development or production contract. In exercising the authority provided in this paragraph, the Secretary may provide in the terms of the contract for the payment of an incentive fee to a contractor not later than 10 years after fielding of the weapon system. (3) Recovery options (A) Any development or production contract for a weapon system shall include terms for amounts to be paid by the contractor to the Government for failure to meet the reliability and maintainability requirements of a contract