I - ITIOSS_TO2_Award Fee Plan_SLAs.doc

Pension Benefit Guaranty Corporation

ATTACHMENT I:

IT Infrastructure Technical Services (ITIOSS)

Task Order 2

SharePoint Solution Development Services (SSDS)

Award Fee Determination Plan 7-1-19

Table of Contents

3SECTION 1:

INTRODUCTION

3SECTION 2:

EVALUATION TIMELINE

3SECTION 3:

AWARD FEE POOL AND ALLOCATION FORMULA

3SECTION 4:

AWARD-FEE PLAN ROLES AND RESPONSIBILITIES

5SECTION 5:

AWARD FEE DETERMINATION PROCESS

SECTION 1: INTRODUCTION

This Award Fee Determination Plan (AFDP) provides procedures for evaluating the contractor's performance of the ITIOSS Contract. The objective of this document is to: (a) providing a workable award fee plan with a high probability of successful implementation; (b) clearly communicate evaluation procedures that provide effective two-way communication between the contractor and the Government; and (c) focus the contractor on areas of greatest importance in order to motivate outstanding performance. The contractor may earn all, part, or none of the Award Fee allocated to the evaluation period based on the “Total Score” transferred from “Award Fee Calculation,” Table 1 below. At the end of each quarter and after the award fee is assessed and scored per the AFDP, the Contracting Officer will inform the Contractor to invoice PBGC for the award fee amount.

SECTION 2: EVALUATION TIMELINE

The Contract will be evaluated every quarter. Award fee determinations will be made by the 20th business day following the end of each evaluation period as described in section 5 award fee determination process and the corresponding timeline, unless an alternate schedule is required and agreed to by the COR and contractor PM due to schedule, monitoring and/or SLA data gathering constraints. There shall be no overlap between the performance periods for purposes of earning award fee. In other words, the contractor cannot earn multiple award fees for performance during the same time period. Please note: The first award fee period after the 2 months transition evaluation will be 4 months, after which each award fee period will be quarterly.

SECTION 3: AWARD FEE POOL AND ALLOCATION FORMULA

For each quarter, the contractor may receive a maximum award fee of one-fourth of 9% of the total estimated labor cost of the performance period (base year or option year) inclusive of all modifications and excluding other direct costs (ODCs).

SECTION 4: AWARD-FEE PLAN ROLES AND RESPONSIBILITIES

Award Fee Determination Official (AFDO) The AFDO is the Director, Information Technology Infrastructure Operations Department.

The AFDO's responsibilities are to:

· Appoint the PRB and the chairperson.

· Approve changes to the award fee plan in consultation with the CO.

· Review the PRB report and determine, in conjunction with CO, the award fee earned and payable.

· Provide written documentation of the decision.

· Ensure the rating and the amount of award fee payable accurately reflects the contractor's performance during the rated period.

AFDO decisions regarding the award fee include but are not limited to: The amount of award fee, the methodology used to calculate the award fee; and the contractor's entitlement to the award fee.

Performance Review Board (PRB) The following table provides the individuals that are members of the PRB. Additional non-voting board members may document meetings as deemed appropriate by the PRB chairperson. Substitutions will be permitted on an infrequent basis in the event of a schedule conflict, subject to approval by the PRB chairperson. Attendance of the non-voting members is not required to convene a board.

The responsibilities of the Board members are to:

· Understand thoroughly the award fee plan

· Conduct evaluations of the contractor's performance based on the QASP

· Ensure all criteria are evaluated thoroughly and accurately for the specified rating period

· Review contractor's self-assessment according to the QASP

· Prepare the Performance Review and recommendation report for AFDO approval/comment

· Review Award Fee Plan for any proposed changes PRB Chairperson (Voting Member) The responsibilities of the PRB Chairperson are to:

· Sit as a voting member of the PRB

· Chair the Evaluation Board

· Nominate PRB members

· Nominate PRB meeting recorder (Optional)

· Select monitors

· Ensure timely submission of monthly reports

· Ensure the PRB is conducted in accordance with the Award Fee Plan

· Resolve any inconsistencies in the PRB evaluations

· Ensure timely submission of PRB Report to the AFDO for review, comment, or approval

· Recommend proposed changes to the Award Fee Plan to AFDO Contract Monitors (See QASP for detail) Contract Monitors are the representatives closest to technical work performed. The responsibilities of the Contract Monitors are:

· Review technical performance

· Interact with the contractor on a regular basis

· Provide oral or written feedback monthly to the COR and the Award Fee Board Members before the Board on the Contractor's performance

· Attend Board meeting at the discretion of the PRB chair

SECTION 5: AWARD FEE DETERMINATION PROCESS

The PRB will evaluate contractor performance according to the SLAs and their Accepted Quality Levels (AQL), Target Quality Level (TQL), and weighted score. The PRB will use this information to evaluate these service areas and to determine the appropriate award fee. The PRB calculates a score for each Service Area and a total for the overall program. The Award Fee Determination Plan (AFDP) consists of award fee provisions for following SLA metrics:

Table-1 – Award Fee Calculation Table

Quarterly Performance Result (Only One Must Be Selected)

Procedures for Award Fee Calculation The PRB calculates the total percentage of available award fee using the total of the score achieved for all SLAs. The score achieved for each SLAs is transferred to the Award Fee Calculation Table from the Contractor final self-assessment.

Example: If total % Achieved is 80% and if the available award fee pool for the period/quarter is $50,000.00, the award fee would be 80% x $50,000 = $40,000.

Performance below the AQL results in a negative score for that SLA, while performance at or above the TQL results in a positive score for that SLA. The available score for any given SLA is its percentage (weight). The Total score for the quarter is the sum of the percentage scored for all active SLAs.

Procedures for Final Evaluations The PRB will review and discuss all performance information. The contractor shall provide its self-assessment to the PRB chairperson according to the following Award Fee Plan Timeline:

The PRB should have 100% of voting members present to make an official recommendation of the amount of award fee. The PRB Report will be a memorandum to the AFDO with the PRB's recommendation. The AFDO will consider the final PRB report and discuss with the board as necessary. The AFDO may accept, reject, or modify the PRB recommendation. The AFDO will document the award fee earned (and the basis of the determination) in an Award Fee Determination Memo, which will be forwarded to the PD CO within (5) business days.

SLA Changes and Exclusions within a Review Period SLAs may be removed from active scoring for a review period. Adverse performance data may also be excluded from the total score following any disruption beyond the control of the contractor. The Contract Monitors will present the exclusions to the PRB and, if necessary, the PRB will ask the contractor to justify the exclusion. The PRB will have the final say on the decision to exclude the data.

� The Board may request an oral self-assessment from the Contractor.

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