An organization is considering various contract types in order to motivate sellers and to ensure preferential treatment. What should they consider before deciding to use an award fee contract?

Before deciding to use an award fee contract, the organization should consider that payment of the award fee is solely based on the customers' satisfaction, rather than objective performance criteria or agreement between both parties. This can potentially lead to favoritism and bias towards the contractor, as their payment is not tied to measurable achievements. Additionally, if there is a dispute over the payment of the award fee, it would have to be resolved through the customer rather than through court, which could further delay and complicate the process.