Revised Attachment J.8 Incentive and Monitoring Framework .pdf

USAID AMOSTRA Incentive and Monitoring Framework

I. Performance Incentive Plan

Under USAID AMOSTRA, offerors will provide a detailed cost and a minimum fee of 2% of the target cost. Once awarded, the contractor will be reimbursed for all reasonable, allowable and allocable costs, in accordance with the Limitations of Funds Clause—FAR 52-232-22. An incentive payment, up to 8% of the target cost will be calculated based on the measure below and be paid on a quarterly basis.

USAID intends to provide performance incentives (PI) based on the performance against two key performance indicators. These performance incentive payments will be based on the value of deliveries that are approved for reimbursement on a semi-annual basis (for a total of 6 payments over the lifespan of the three-year contract). Contractors should propose a reasonable base minimum of 2% in accordance with the quantity and risks. The maximum incentive fee for this procurement will be 8% of the target cost. Indicators are defined so that they are within the manageable control of the contractor. The contractor is invited to suggest additional industry-specific indicators that will improve performance monitoring and maximizing efficiency. Performance will be tracked on a monthly basis; however, the incentive calculations will be made on a quarterly basis.

Key Performance Metric Target Fee Structure Fee Application

On time delivery

This key performance metric measures the timeliness to which health facilities receive specimens in accordance with the pre-established distribution plan agreed with the contractor.

91-100%

81-90%

71-80%

Tier 3 (91-100%): 4%

Tier 2 (81-90%): 3%

Tier 1 (71-80%): 1%

Applied to the expected target cost for the quarter

In full delivery

This key performance metric measures the completeness of deliveries in accordance with the pre-established distribution plan agreed with the contractor.

96-100% Tier 3 (>96-100%): 4%

Tier 2 (90-95%): 3%

Tier 1 (85-89%): 1%

Applied to the expected target cost for the quarter

II. Illustrative Performance Monitoring Plan

USAID intends to track performance on a monthly basis; however, the incentive calculations will be made on a quarterly basis.

Key Performance Metric

Data Acquisition Plan Data Quality Considerations Data Analysis

On time delivery

Data collection method:

Submitted & approved in AMOSTRA reporting to be reviewed by DCL

Data Source: Agreed upon plan signed by DPS and signed proof of delivery (POD)

Frequency: Monthly

Data Quality Assessment: DQA performed quarterly for a randomly selected province, and on an as needed basis when performance problems or complaints are raised

Potential Limitations: Districts may not have distribution plans Mitigation Plan: Make clear the distribution plan requirement before starting distributions in each geographic area.

Reported monthly with quarterly and semi-annual and annual review of trends by USAID IHO, and DCL serve as the basis for the semi-annual incentive payment

In full delivery

Data collection method:

Submitted in AMOSTRA reporting

Data Source: Delivery notes

Frequency: Monthly

Data Quality Assessment: DQA performed quarterly for a randomly selected province, and on an as needed basis when performance problems or complaints are raised Potential Limitations: Delivery notes without signature and/or date Mitigation Plan: Training at the start of implementation on how to fill out delivery notes and conduct quality assurance during data review meetings

Reported monthly with quarterly and semi-annual and annual review of trends by USAID IHO, and DCL serve as the basis for the quarterly incentive payment

Performance Monitoring Roles:

USAID Integrated Health Office (IHO), and Departamento Central de Laboratorios (DCL) will monitor the performance of the AMOSTRA contractor. Under this award, there will be a strong collaboration USG and the DCL. Other direct stakeholders include Mozambican Government officials at the national and sub-national level, health facilities and PEPFAR and other service delivery partners that support health facilities. Over the three years of the contract, the contractor and USAID will play a prominent role in monitoring performance and after the third year the responsibility for delivery of laboratory specimens and diagnosis will be gradually transitioned to the DCL . The monitoring roles for the two main institutions validating AMOSTRA performance, are detailed in the table below:

Monitoring Activity USAID IHO DCL Start of Award

Desk review, progress versus agreed deliverables and milestones Monthly Monthly

Central review performance data reported by AMOSTRA contractor

Quarterly Quarterly

Conduct site monitoring visits with data validation checks Quarterly Monthly

Participate in in-person provincial level performance reviews with provinces/DPSs

Ad hoc Quarterly

Conduct data quality assessment Ad hoc Quarterly

Review corrective action plans and completion of agreed actions As needed As needed