A19-J.17 - OWCP Award Term Plan-.docx

OFFICE OF WORKER’S COMPENSATION PROGRAMS

AWARD TERM INCENTIVE PLAN

June 2023

VERSION 1.0

CONCURRENCE:

Date Director, Office of Workers’ Compensation Programs

APPROVAL:

Sandra E. Foster Head of Contracting Activity Director, Office of the Acquisition Services (OAS) Office of the Senior Procurement Officer (OSPE)

Date

TABLE OF CONTENTS

AWARD TERM PLAN

OWCP Medical Provider Network and Medical Processing Services

1.0 INTRODUCTION

The intent of this Award Term Plan (hereinafter referred to as the “Plan” or “Award Term”) is to establish written procedures for the evaluation of Contractor’s positive and negative performance by furnishing guidelines and procedures for: (1) evaluating the Contractor's performance (both positive and negative) and (2) furnishing sufficient data to enable the Award Term Approving Official (ATAO) to determine whether the award term will be granted.

The methodology and schedule for evaluating the Contractor’s performance and determining eligibility for the award term is herein included. The Plan along with the Department of Labor’s (DOL’s) determination of continued need for services, the availability of funds and the Contractor's ability to implement a successful go-live as per Technical Exhibit 1 – Performance Work Summary, will be the basis for extending the performance period beyond the Base Period and determining the Contractor’s eligibility for the available Award Term option.

2.0 GENERAL

Through this plan, OWCP seeks to provide additional incentives for the Contractor to timely and successfully achieve full implementation of all services (i.e. go-live). The Contractor will not be awarded the award term when the Contractor’s performance at implementation is determined to be below good. The factors/sub-factors for this determination are set forth in paragraph 6.0 and Attachment A, Performance Areas, and Evaluation Criteria.

3.0 PURPOSE

This plan and the resultant contract provisions shall serve as a guide to OWCP performance monitors directly involved in the evaluations of Contractor performance.

4.0 OBJECTIVES

The objective of this award term feature is to incentivize overall Contractor performance, and more specifically, the areas delineated in paragraph 6.0. Therefore, the Contractor should emphasize these areas in its performance of the resulting contract.

5.0 PERFORMANCE AWARD TERM REVIEW TEAM

5.1 Organization

The organization of the team is described in the following paragraphs.

5.1.1 Award Term Approving Official (ATAO) is the OWCP Administrative Officer.

5.1.2 Award Term Review Team or “Performance Monitors.” The ATAO will appoint a Team to assist in evaluating the Contractor's performance. The ATAO may appoint a Chairman to the Team, or the ATAO may serve as the Chairman.

The team members will ensure a fair, impartial, and accurate assessment of the Contractor's performance for the period being evaluated. The Team Chairman may also use non-voting advisors, as necessary.

5.2 Duties of the Team

The duties of the Team area as follows:

5.2.1 Implement the plan and propose timely modifications to the plan if required, through the Contractor’s performance during the contract period of performance.

5.2.2 Evaluate Contractor performance for each evaluation period.

5.2.3 Prepare and submit to the ATAO a written evaluation of the Contractor's performance.

5.3 Responsibilities

5.3.1 The ATAO approves the award term plan and the evaluation factors/sub-factors and scoring methodology, the ATAO will also approve the composition of the Team and will also determine the Contractor performance rating and whether the award term period will be granted based on the factors/subfactors of the plan. The ATAO also advises the Contractor of annual evaluation results and award term decision and documents the basis for the decision.

5.3.2 Team Chairman. Structures the team membership to provide representation that reflects all appropriate aspects of the contract performance and ensure team members adequately assess Contractor performance for the period being evaluated. Conducts the evaluation under this plan. Schedules team meetings and serves as a recorder at these meetings. Leads the team in developing a consensus evaluation and in resolving significant differences in ratings. Provides brief summary documentation for the ATAO. May provide feedback to the Contractor in order to focus the Contractor on areas that would lead to improved performance in subsequent periods.

5.3.3 Award Term Review Team (ATRT) monitors and evaluates Contractor performance for the period under consideration, utilizing the factors/sub-factors set forth in this plan. Makes written evaluations, completes the evaluation worksheets (see Attachment E - Award Term Contractor’s Performance Report and Checklist) and formulates award term recommendations. Briefs the ATAO on evaluations, when requested, and provides supporting data/documentation to support the assessment of performance. Prepares the evaluation report and accompanying narrative justification. Identifies potential improvement areas and areas of emphasis for the next succeeding evaluation period that is provided to the Team Chairman for debriefing the Contractor.

5.3.4 Contracting Officer is a member of the Award Term Review Team. Prepares and distributes modifications awarding the term based on recommendations made by the ATAO. Maintains term documentation as part of the official order file. Retains historical files and other documentation relating to term matters for the contract.

5.3.5 Performance Monitors shall be assigned by the ATAO and evaluate the Contractor's performance during each contract period of performance using established evaluation factors/sub-factors.

6.0 PERFORMANCE EVALUATION AND FACTORS/SUB-FACTORS

Performance Monitors shall evaluate the Contractor's performance during the base period of performance using the evaluation factors/Sub-factors (see Attachment A). The CO may notify the Contractor of areas where emphasis should be placed during the period. If the Contracting Officer does not provide specific notice in writing to the Contractor or changes to the evaluation criteria prior to the start of an evaluation period, the criteria in this plan will be used in the evaluation.

7.0 SPECIAL CONDITIONS

(A) Progress Reviews: The government will conduct progress reviews during the first 13.5-months of the base period. The intent of the progress review is to discuss the Contractor’s performance and to address any issues or areas of concern.

(B) Award Term (AT) Assessments: The Contractor may be eligible to earn no more than one (12-month) Award Term period. The Award Term assessment to determine eligibility will be conducted by the Award Term Board during the period of 45 to 60 days following go-live. The Contractor must achieve an assessment of good or higher to receive the Award Term.

(C) Award Term Rates: The Award Term Rates will be priced and evaluated as part of the source selection process.

(D) Changes to the Award Term Plan. Bilateral changes may be made to award the term plan at any time. It is possible that actual performance will reveal that the negotiated levels are either too easy or too difficult to attain. The Contractor and Contracting Officer will negotiate the satisfactory and higher levels of performance ratings. The values may be renegotiated at the request of either party. If an agreement cannot be made within 60 days, the Government reserves the right to set the values unilaterally in the event an agreement is not reached.

ATTACHMENT A:

PERFORMANCE AREAS AND AWARD TERM FACTORS (ATF)

(Contractor/Government Agreement)

The performance factors to be evaluated are identified below. The evaluation criteria for each factor is specified in the indicated section of this attachment.

Factor Weight Section

ATF 1 TECHNICAL PERFORMANCE FACTOR/SUB-FACTORS

Factor Weight: 70%

Description of Factor/Sub-factors: For the evaluation period, the Contractor's Technical Performance will be assessed to determine if the work already performed meets the technical requirements of the contract including a variety of sub-factors related to how the work was accomplished, as indicated below.

1. Technical Ability– The Contractor will be evaluated on their effectiveness and efficiency to achieve full implementation (Go-live) for all OWCP programs within 365 days of contract start. Provide performance-based services to meet the technical requirements and schedules described in the contract. Also, to be considered is the quality and timeliness of all technical reports and other required deliverables associated with full implementation as outlined in Technical Exhibit 2 - Schedule of Deliverables. Full implementation for all OWCP programs within the first 365 days will consists of successfully executing the following tasks from section 5 of the PWS, with any defects found within 14 days of go-live and resolved within 44 days of go-live.

· PWS section 5.2 Pharmacy Benefits Management (Task One)

· PWS section 5.3 Customer Support (Task Two)

· PWS section 5.4 Assisting with Business Rules (Task Three)

· PWS section 5.5 Processing Claims for Payment (Task Four)

· PWS section 5.6 Fee Schedule (Task Five)

· PWS section 5.7 Fraud, Waste and Abuse Monitoring (Task Six)

· PWS section 5.8 Reporting and Data (Task Seven)

· PWS section 5.9 Information Management (Task Eight)

· PWS section 5.10 Claimant, Prescriber, And Staff Portals (Task Nine)

· PWS section 5.11 Formulary Management (Task Ten)

· PWS section 5.12 PBM Drug Utilization Review (Task Eleven)

· PWS section 5.13 Durable Medical Equipment (DME) Task Twelve)

· PWS section 5.14 Diagnostic Services and Testing (Task Thirteen)

· PWS section 5.15 Specialty Pharmacy Services (Task Fourteen)

· PWS section 5.16 Testing (Task Fifteen)

· PWS section 5.17 System Audits (Task Sixteen)

ATF 2 BUSINESS MANAGEMENT PERFORMANCE FACTOR/SUB-FACTORS

Factor Weight: 30%

Description of Factor: Business Management is the manner in which the Contractor complies with contract terms, conditions, and provisions. It includes contract administration and compliance, general business management and communications i.e. personnel, inter-organizational interfaces, workflow, system and materials controls, and contract management. For the evaluation period, business management performance is broadly assessed in meeting the business management requirements for the overall contract, as indicated below.

Sub-factors Considered for Evaluation:

1. Contract Administration and Compliance – The Contractor will be evaluated on the overall administration of the contract during the base period. This will include accuracy and timeliness of all reporting requirements, subcontract consent documentation and proposal submissions, overall compliance with all terms and conditions of the contact, and responsiveness to contractual issues.

2. Personnel Management – The Contractor will be evaluated on their performance in providing staffing at appropriate skill levels to ensure effective and efficient performance- based services. The Contractor will also be evaluated as to the extent to which they applied and retained competent and experienced personnel to ensure successful and cost-effective performance including recruitment, quality assurance scheduling, reporting, and billing.

3. Communications – Assessment of the Contractor’s performance in providing effective communication (both written and oral) within its organization and to the Government, and whether all problems, technical issues and changes are properly communicated and reported to all concerned within the timeframes established by the Performance Work Statement.

Basis for Measuring Performance: The ATRT Chairperson will prepare a report that addresses the above performance areas. On the basis of those evaluations, each performance report will be assigned a rating of "Excellent," "Very Good," "Good," “Satisfactory,” “Marginal” or “Unsatisfactory," as specified in Attachment B, Award Term Grading Figure. For each applicable Sub-factors, the ATRT report will characterize it as having major or minor impacts on overall performance in related areas and will describe any extraordinary circumstances relating to the performance of the contract. These impact statements will be used by the ATRT to weigh the inclusion of specific issues in the Award Term Letter.

ATTACHMENT B: AWARD TERM RATING SCALE

Adjectival Range of Description Rating Performance

criteria in the award-term plan for the award-term evaluation period.

criteria in the award- term plan for the award-term evaluations period.

against the criteria in the award-term plan for the award-term evaluation period.

The Award Term will only be awarded for an overall Good or higher performance rating.

ATTACHMENT C:

ACTIONS AND SCHEDULES FOR AWARD TERM DETERMINATIONS

The following is a summary of the principal actions involved in determining the award term for the evaluation periods. The ATRT will establish lists of subsidiary actions and schedules as necessary to meet the schedule for principal actions. “Days” refer to calendar days.

ATAO Appoints

Term Plan

ATRT meets to discuss performance reports and prepare preliminary findings and recommendations NLT 38 days before end of period

The ATAO reviews and signs the award term letter. CO forwards the award term letter and executed contract modification to Contractor for comment NLT 30 days before end of period

ATTACHMENT D: GENERAL INSTRUCTIONS

FOR EVALUATION AND MONITORING OF PERFORMANCE

The following instructions apply to Government performance evaluation and monitoring of performance. [INSERT VENDOR’s NAME HERE – TBD at contract award] will apply similar performance evaluation and monitoring, generally in parallel with the Government and consistent with the intent of this instruction.

1. Performance Monitors (PMs) will prepare outlines of their assessment plans and coordinate them with the ATRT Chairperson. Upon agreement with the ATRT Chairperson, the PMs will discuss the plans with appropriate Contractor personnel to ensure complete understanding of the evaluation and assessment process.

2. PMs will conduct all assessments in an open, objective, and cooperative manner so that a fair and accurate evaluation is obtained. This will ensure that both the PMs and the Contractor receive accurate and complete information from which to prepare assessments and plan improvements in performance. Positive and negative performance accomplishments will be emphasized, and extraordinary circumstances will be noted in reports.

3. PMs will discuss their assessments with the appropriate Contractor personnel, noting observed accomplishments, deficiencies, or unusual circumstances. This affords the Contractor an opportunity to clarify possible misunderstandings regarding areas of poor performance, and to correct or resolve deficiencies in a timely manner.

4. PMs will conduct their contacts and visits with Contractor personnel within the context of official contractual relationships. They will avoid activities or associations that might cause, or give the appearance of, a conflict of interest on either part.

5. PMs contacts with Contractor personnel will not be used to instruct, direct, or supervise or control these personnel in the performance of the contract. The role of the PMs is to monitor, assess, and evaluate, not to manage the Contractor's effort.

6. PMs will document their assessments of Contractor performance in their monthly reports that they will submit to the ATRT Chair at the end of each evaluation period. The PMs will be prepared to make verbal reports of their evaluations and assessments as required by the ATRT Chairperson or CO.

ATTACHMENT E:

AWARD TERM CONTRACTOR’S PERFORMANCE REPORT AND CHECKLIST

(For Internal Purposes Only)

Reporting Element (See Section 6.0):

Date(s) of Event Reported:

Performance Evaluation Category (Award Term Factors (ATF):

· ATF 1 Technical Performance: Weight Factor 70%

· ATF 2 Business Management: Weight Factor 30% (inclusive of Sub-Factors 1-4)

Was Contractor Notified?

· Yes

· No

XX-XX-XXXX

Description Of Performance Section 1: Describe the specific performance objectives and standards (Service Levels (SL) (Reference Technical Exhibit 1 – Performance Work Summary):

AT Factor 1 – Technical Performance: (70%)

AT Factor 2 - Business Management: (30%) AT Sub-Factors:

1. Contract Administration and Compliance – The Contractor will be evaluated on the overall administration of the contract. This will include accuracy and timeliness of all reporting requirements, subcontract consent documentation and proposal submissions, overall compliance with all terms and conditions of the contact, and responsiveness to contractual issues. (8%)

2. Personnel Management – The Contractor will be evaluated on their performance in providing staffing at appropriate skill levels to ensure effective and efficient performance- based services. The Contractor will also be evaluated as to the extent to which they applied and retained competent and experienced personnel to ensure successful and cost-effective performance including recruitment, quality assurance scheduling, reporting, and billing. (8%)

3. Communications – Assessment of the Contractor’s performance in providing effective communication (both written and oral) within its organization and the Government, and whether all problems, technical issues and changes are properly communicated and reported to all concerned within the timeframes established by the Performance Work Statement. (8%)

Section 2: Describe in detail the Contractor’s specific accomplishment(s) and its impact on management, quality, schedule, cost. Include any fail risk to the government’s Program. The narrative should be supported by factual data and/or documentation (include random sampling or examples, as applicable):

A Factor 1 – Technical Performance: (70%)

Contractor’s Accomplishments:

Impact on the following:

Management:

Quality:

Schedule:

Cost:

Risks:

Attach Supporting Documentation:

AT Factor 2 - Business Management: (30%) AT Sub-Factors:

1. Contract Administration and Compliance (SL 100%) (10%):

2. Personnel Management (SL 100%) (10%):

3. Communications (SL 100%) (10%):

Contractor’s Accomplishments:

Quality:

Schedule:

Cost:

Risks:

Attach Supporting Documentation:

Section 3: What was the impact of the Contractors above or below average performance as it relates to quality, schedule, costs, and management?

AT Factor 1 – Technical Performance: (70%)

Contractor’s Above or Below Average Performance:

Quality:

Schedule:

Cost:

Risks:

Attach Supporting Documentation:

AT Factor 2 - Business Management: (30%) AT Sub-Factors:

1. Contract Administration and Compliance (10%):

2. Personnel Management (10%):

3. Communications (10%):

Contractor’s Above or Below Average Performance:

Quality:

Schedule:

Cost:

Section 4. Did the Contractor’s actions affect other operations or projects? If so, what was the impact to the governments quality, schedule, management and cost.

Contractor’s actions on Other Operations or Projects:

Quality:

Schedule:

Cost:

Risks:

Attach Supporting Documentation:

AT Factor 2 - Business Management: (30%) AT Sub-Factors:

1. Contract Administration and Compliance (10%):

2. Personnel Management (10%):

Contractor’s actions on Other Operations or Projects:

Quality:

Schedule:

Cost:

Section 5. How does it impact future requirements as a result of what the Contractor did or did not accomplish?

Impact on future Operations or Projects:

Quality:

Schedule:

Cost:

Risks:

Attach Supporting Documentation:

AT Factors 2 – Business Management: (30%) AT Sub-Factors:

1. Contract Administration and Compliance (10%):

2. Personnel Management (10%):

Impact on future Operations or Projects:

Quality:

Schedule:

Cost:

Average Total for ATF1 -Technical Ability:

Overall Rating

· Exceptional (90-100)

· Very Good (80-89)

· Good (70-79)

· Satisfactory (60-69)

· Marginal (50-59)

· Unsatisfactory (0-49)

Additional Comments:

Average Total for ATF 2 - Business Management:

· Exceptional (90-100)

· Very Good (80-89)

· Good (70-79)

· Satisfactory (60-69)

· Marginal (50-59)

Additional Comments:

Signature of Performance ATRT:

Date:

Performance Assurance Department Assessment

Further clarification of the ATRT report including relation to other performance, Contractor’s input, and impact as viewed by the coordinator. (Attach Contractor’s comments/input).

Assessment of other Performance:

Assessment of contractor’s input:

Impact to :

Quality:

Schedule:

Cost:

Coordinator’s Review Comments/Recommendations:

· Exceptional (90-100)

· Very Good (80-89)

· Good (70-79)

· Satisfactory (60-69)

· Marginal (50-59)

Signature of Performance ATRT:

Date

ATTACHMENT F: EVENTS CHECKLIST

1. Did the Contractor perform the work with an unusual degree of technical competence?

2. What was the impact of the early or late completion of this effort?

3. Did the Contractor make unusual effort to utilize available resources and support?

4. What was the current workload in relation to the Contractor’s performance of this particular circumstance?

5. Was the Contractor resourceful in its attempts to complete the work through in-house capabilities?

6. What significant relation exists in this effort and other work?

7. Has the PMs included full descriptions of the facilities involved and their relation- ship to the event (limited use of acronyms)?

8. How important was the time frame involved?

9. Did the Contractor perform the effort on its own initiative or as a result of a specific technical direction?

10. Has the PMs successfully demonstrated the difference between their interpretation of the circumstance and what would normally be expected performance?

11. Are there any objective standards involved in the write-up? If so, what are they?

12. Has the PMs clearly distinguished the Contractor’s performance in terms of ingenuity, creativity, and innovation?

13. Has the PMs successfully demonstrated the impact of the circumstance to all direct and indirect areas?

ATTACHMENT G: ABBREVIATIONS AND ACRONYMS