Attachment_3_Award_Fee_Plan.pdf

RFP 72044018R00004

USAID/Vietnam Linkages for Small and Medium-sized Enterprises

ATTACHMENT 3

AWARD FEE EVALUATION PLAN

FOR Contract No. _________________ With ____________________

Contents I. Introduction II. Organizational Structure for Award Fee Administration III. Evaluation Requirements IV. Method for Determining Award Fee V. Changes in Plan Coverage VI. Schedule

I. Introduction

1. This plan covers the administration of the award fee provisions of Contract No._______ , dated _____________ , with ______________ . The contract was awarded after completion of negotiations in accordance with the provisions of RFP No. ________.

2. The following matters, among others, are covered in the contract:

a. The contractor is required to provide technical assistance to strengthen the SME-GVC Business Linkage Framework and Enhance Vietnamese SMEs’ capacity.

b. The term of the contract is from _________ through __________ .

c. The total estimated cost, exclusive of award fee, of performing the contract is $ __________ .

d. The maximum available award fee is $ ___________ .

e. The estimated cost and award fee may be subject to equitable adjustments arising from changes or other contract modifications.

g. The award fee payable will be determined periodically by the Fee Determination Official (FDO) in accordance with this plan.

h. Award fee determinations are not subject to the Disputes clause of the contract.

i. The FDO may unilaterally change the matters in this plan, as covered in Part V and not otherwise requiring mutual agreement under the contract, provided the contractor receives notice of the changes at least 30 calendar days PRIOR TO the beginning of the evaluation period to which the changes apply.

II. Organizational Structure for Award Fee Administration

The following organizational structure is established for administering the award fee provisions of the contract.

1. Fee Determination Official (FDO)

a. The FDO is the Director of USAID/Vietnam’s Office of Acquisition and Assistance.

b. Primary FDO responsibilities are:

(i) Determining the award fee earned and payable for each evaluation period as addressed in Part IV.

(ii) Changing the matters covered in this plan as addressed in Part V as appropriate.

2. Award Fee Board (AFB)

a. The Chair of the AFB is the Deputy Mission Director of USAID/Vietnam. The following are voting members of the AFB: the representative of USAID/Vietnam’s Program Development Office, the Director of USAID/Vietnam’s Office of Economic Growth and Governance Office and the cognizant Acquisition and Assistance Specialist.

b. The Chair may recommend the appointment of non-voting Members to assist the AFB in performing its functions.

c. Primary responsibilities of the Board are:

(i) Conducting periodic evaluations of contractor performance and the submission of a Award Fee Board Report (AFBR) to the FDO covering the Board's findings and recommendations for each evaluation period, as addressed in Part IV.

(ii) Considering changes in this plan and recommending those it determines appropriate for adoption by the FDO, as addressed in Part V.

3. Performance Monitoring

a. The Contracting Officer’s Representative (COR) will prepare Performance Monitoring Reports, as well as written comments on the Contractor’s self-assessment. The COR will also elicit feedback from beneficiaries and stakeholders to include in the written comments. These written documents will be part of the record for the AFB.

b. The Contractor will submit, as part of its regular quarterly report, a self-assessment of progress toward achieving indicators and milestones as established in its Annual Work Plan. These written documents will be part of the record for the Performance Evaluation Board.

III. Evaluation Requirements

The applicable evaluation requirements are attached as indicated below.

1. Evaluation Periods and Maximum Available Award Fee for Each Period

Period of Performance Period*

(Start/End date) Amount of Award Fee Available

First Year TBD at award TBD Second Year TBD at award TBD Third Year TBD at award TBD Fourth Year TBD at award TBD Fifth Year TBD at award TBD Maximum Award Fee Available

TBD

2. Award Fee Criteria and Weights

For each of the first four award fee periods (end of year 1, year 2, year 3, and year 4):

Factors Assigned % of Overall Award Fee Pool (each period)

1. Private sector engagement:

The extent and the quality of private sector engagement in the program.

(Section C.4 of the Contract).

8%

2. Continuous learning:

The degree to which the contractor utilizes the Monitoring, Evaluation, and Learning Plan (MELP) to assess the effectiveness of the interventions, evaluate whether those interventions are succeeding, apply lessons learned, and adapt work appropriately.

8%

For the fifth award fee period (end of the contract):

Factors Assigned % of Overall Award Fee Pool

1. Achievement of Targets:

The extent to which the contractor’s interventions have, at the completion of the period of performance, have led to positive systematic changes for SMEs in Vietnam, both within and outside the targeted sectors.

36%

3. Grading Table

Adjectival Rating

Range of Perf.

Points

Description

Excellent 91-100% Contractor has exceeded almost all of the significant award-fee criteria and has met overall cost, schedule, and technical performance requirements of the contract in the aggregate.

Very Good 76-90% Contractor has exceeded many of the significant award-fee criteria and has met overall cost, schedule, and technical performance requirements of the contract in the aggregate.

Good 51-75% Contractor has exceeded some of the significant award-fee criteria and has met overall cost, schedule, and technical performance requirements of the contract in the aggregate.

Satisfactory No Greater Contractor has met overall cost, schedule, and technical performance

Adjectival Rating

Range of Perf.

Points

Description

Than 50% requirements of the contract in the aggregate.

Unsatisfactory 0% Contractor has failed to meet overall cost, schedule, and technical performance requirements of the contract in the aggregate.

The percentage weights indicated and the grading table above are quantifying devices. Their sole purpose is to provide guidance in arriving at a general assessment of the amount of interim or final award fee earned. In no way do they imply an arithmetical precision to any judgmental determination of the contractor's overall performance and amount of interim or final award fee earned.

IV. Method for Determining Award Fee

A determination of the award fee earned for each evaluation period will be made by the FDO within 45 calendar days after the end of the period. The method to be followed in monitoring, evaluating and assessing contractor performance during the period, as well as for determining the award fee earned or paid, is described below.

1. The COR will evaluate and assess contractor performance and discuss the results with contractor personnel as appropriate, in accordance with the General Instructions for Performance Monitoring, below, and the specific instructions and guidance furnished by the AFB Chair.

2. The COR will submit (bi)annual Performance Monitoring Reports and, if required, make verbal presentations to the AFB.

3. The AFB Chair will request and obtain performance information from other units or personnel normally involved in observing contractor performance, as appropriate.

4. Promptly after the end of each evaluation period, the AFB will meet to consider all the performance information it has obtained. At the meeting, the AFB will hear from the COR, the contractor, and any other appropriate personnel. At this meeting, the contractor is given an opportunity to submit information on its behalf, including an assessment of its performance during the evaluation period. This meeting is to inform the AFB’s recommendation to the FDO.

5. Within 5 days after the AFB meeting, the AFB Chair will prepare the AFB Report for the period and submit it to the FDO for use in determining the award fee earned. The report will include an adjectival rating and a recommended performance score with supporting rationale/documentation. The contractor may be notified of the AFB evaluation and recommended rating and score. The contractor may provide additional information for consideration by the FDO. When submitting the report, the Chair will inform the FDO whether the contractor desires to present any matters to the FDO before the award fee determination is made.

6. The FDO will consider the AFB Report and discuss it with the AFB Chair and other personnel, as appropriate.

7. The FDO will consider the recommendations of the AFB, information provided by the contractor, if any, and any other pertinent information in determining the amount of award fee earned for the period.

The FDO's determination of the amount of award fee earned and the basis for this determination will be stated in the Award Fee Determination Report (AFDR).

8. The contractor will be notified by the Contracting Officer of the FDO's determination. The contractor may be provided a debriefing by the FDO at his/her discretion.

V. Changes in Plan Coverage

1. Right to Make Unilateral Changes

Any matters covered in this plan not otherwise requiring mutual agreement under the contract, may be changed unilaterally by the FDO prior to the beginning of an evaluation period by timely notice to the contractor in writing. The changes will be made without formal modification of the contract if the plan is not incorporated into the contract.

2. Method for Changing the Award Fee Plan

The method to be followed for changing the plan coverage is described below:

a. Personnel involved in the administration of the award fee provisions of the contract are encouraged to recommend plan changes with a view toward changing management emphasis, motivating higher performance levels or improving the award fee determination process. Recommended changes should be sent to the AFB for consideration and drafting.

b. Prior to the end of each evaluation period, the AFB will submit its recommended changes, if any, applicable to the next evaluation period for approval by the FDO with appropriate comments and justification.

c. 30 calendar days before the beginning of each evaluation period, the Contracting Officer will notify the contractor in writing of any changes to be applied during the next period. If the contractor is not provided with this notification, or if the notification is not provided within the agreed-to number of calendar days before the beginning of the next period, then the existing plan will continue in effect for the next evaluation period.

VI. Schedule for the Award Fee

The following is a summary of the schedule of the principal actions involved in determining the award fee for the evaluation periods.

Action (Calendar days)

1. AFB Chair and members appointed. NLT 30 days prior to first period

2. COR receives orientation and guidance.

NLT 30 days prior to first period

4. COR assesses performance and discusses results with contractor.

Ongoing after start of period

Action (Calendar days)

5. COR submits Performance Monitoring Reports to AFB.

Last day of each period.

6. AFB considers Performance Monitoring Reports, Contractor Self Assessments and other requested performance information.

Ongoing

7. AFB meets to consider all performance information obtained during the period and establishes findings and recommendations for AFB Report.

NLT 30 days after end of each period

8. AFB Chair submits AFB Report to FDO. NLT 35 days after end of each period

9. FDO considers AFB Report and discusses with AFB, as appropriate.

NLT 40 days after end of each period

13. FDO makes final determination on award fee.

NLT 50 days after end of each period

The AFB will establish lists of subsidiary actions and schedules as necessary to meet the above schedules.

GENERAL INSTRUCTIONS FOR PERFORMANCE MONITORING

a. The COR will prepare outlines of their assessment plans, discuss them with appropriate contractor personnel to assure complete understanding of the evaluation and assessment process.

b. The COR will plan and carry out on-site assessment visits, as necessary.

c. The COR will conduct all assessments in an open, objective and cooperative spirit so that a fair and accurate evaluation is obtained. This will ensure that the contractor receives accurate and complete information from which to plan improvements in performance. Positive performance accomplishments should be emphasized just as readily as negative ones.

d. The COR will discuss the assessment with contractor personnel as appropriate, noting any observed accomplishments and/or deficiencies. This affords the contractor an opportunity to clarify possible misunderstandings regarding areas of poor performance and to correct or resolve deficiencies.

e. The COR must remember that contacts and visits with contractor personnel are to be accomplished within the context of official contractual relationships. Monitors will avoid any activity or association which might cause, or give the appearance of, a conflict of interest.

f. The Contractor will submit, as part of its regular quarterly report, a self-assessment of progress toward achieving indicators and milestones as established in its Annual Work Plan. These written documents will be part of the record for the Performance Evaluation Board.