Appx_F - Incentive Plan.pdf

FA4890-22-R-CN02, FOL BOS

APPENDIX F

FORWARD OPERATING LOCATION BASE OPERATING SUPPORT (FOL-BOS)

INCENTIVE PLAN

Appendix F – FOL-BOS Incentive Plan Page 1 of 4

1.0 INTRODUCTION.

1.1 This plan describes the process that will be used to determine whether the Contractor is eligible or ineligible for the Incentive Option Periods (IOP). The Government will use the annual Contractor Performance Assessment Report ratings for the FOL-BOS contract to determine eligibility for the IOPs.

1.2 The objective of this incentive approach is to motivate consistent, “Satisfactory” or better performance in all CPARS rated areas from the outset of contract performance. For this reason, the decision point (DP) for IOP1 eligibility relates directly to initial performance quality (transition period plus base period of performance). IOP2 DP considers performance occurring after the first option period of the contract.

2.0 DEFINITIONS.

2.1 Incentive Option Period (IOP). The period of performance established under this competitively awarded contract in which the Contractor may be awarded an option in the future based on a contingency. In this case, the contingency is defined as the Contractor receiving exclusively “Satisfactory” or higher Contractor Performance Assessment Reporting System (CPARS) documented ratings in all evaluated areas of contract performance considered at the effective Determination Point.

2.2 Determination Point (DP). The scheduled point in time when the Contracting Officer makes a unilateral decision as to whether the Contractor has become eligible or ineligible for an opportunity to perform a future IOP. An affirmative determination does not automatically entitle the Contractor to perform during a particular IOP, but rather affords the Contractor an opportunity to perform during a particular IOP contingent upon the Contracting Officer determining the requirements of FAR Part 17.202 – Use of Options are met and exercising the IOP in accordance with FAR 52.217-9 - Option to Extend the Term of the Contract.

2.3 Eligible. The Contracting Officer’s affirmative decision that the Contractor has met the required criteria, (i.e., received exclusively “Satisfactory” or higher CPARS ratings) which in turn, supports the Contracting Officer’s decision to exercise either Option Period 3 (IOP1) or Option Period 4 (IOP2). Contractor performance must be maintained at “Satisfactory” or higher throughout the preceding periods of performance after DP #2 to ensure retention of earned IOPs.

3.0 GENERAL PROCEDURES.

3.1 IOP Parameters.

3.1.1 The Contractor becomes eligible or ineligible for IOPs based on CPARS performance ratings. One or more CPARS rating(s) below “Satisfactory” in any rated area (i.e. Quality, Schedule, Cost Control, Management, Small Business Utilization, and Regulatory Compliance)

FORWARD OPERATING LOCATION BASE OPERATING SUPPORT (FOL-BOS)

Appendix F – FOL-BOS Incentive Plan Page 2 of 4 may result in the loss of eligibility for an IOP. Only “Satisfactory” or higher CPARS ratings in all rated areas will guarantee continued IOP eligibility.

3.1.2 All IOPs will be executed in accordance with FAR 52.217-9 - Option to Extend the Term of the Contract, as the unilateral right of the Government. As such, it should be understood that becoming “eligible” for an IOPs does not guarantee future performance of the 3rd or 4th Option Period. In addition to maintaining eligibility through “Satisfactory” or higher CPARS ratings for subsequent contract periods (Option Period 2 or Option Period 3/IOP1), the IOPs remain contingent upon the requirements of FAR Part 17.207 – Exercise of Options.

3.2 IOP Implementation. This section illustrates the DPs and IOP eligibility process.

There are two possible DPs (DP #1 and DP #2) and each is described below. Each DP makes reference to “IOP1”, and/or “IOP2”. IOP1 refers to the 3rd Option Period, and IOP2 refers to the 4th Option Period. To merit an opportunity to become eligible for IOP2, the Contractor must be eligible for IOP1 first. Figure 1 provides a visual chart depicting the IOP DPs and IOP eligibility process:

3.2.1 DP #1.

3.2.1.1 Eligible. The Contractor has achieved CPARS ratings of “Satisfactory” or better in all evaluated performance areas during Transition and the Base Period. The Contractor becomes eligible for IOP1, therefore, the possible contract duration becomes four years. Although eligible for IOP1, this option may or may not be exercised by the Contracting Officer in accordance with FAR 52.217-9.

3.2.1.2 Ineligible. The Contractor did not achieve annual CPARS ratings of “Satisfactory” or better in all evaluated performance areas during Transition and the Base Period. Since the Contractor must be eligible for IOP1 to merit an opportunity to become eligible for IOP2, the Contractor becomes ineligible for IOP2. However, the Contractor will be afforded an opportunity to again become eligible for IOP1 at DP #1A.

3.2.2 DP #1A. This decision point is only used when the Contractor was determined ineligible at DP#1 and is IOP2 ineligible.

3.2.2.1 Eligible. The Contractor has achieved CPARS rating of “Satisfactory” or better in all evaluated performance areas during Option Period 1. The Contractor becomes re-eligible for IOP1, therefore, the possible contract duration becomes four years. Although eligible for IOP1, this option may or may not be exercised by the Contracting Officer in accordance with FAR 52.217-9.

3.2.2.2 Ineligible. The Contractor did not achieve annual CPARS ratings of “Satisfactory” or better in all evaluated performance areas during Option Period 1. The Contractor becomes ineligible for IOP1, therefore, the possible contract duration becomes three years.

3.2.3 DP #2. This decision point is only used when the Contractor was determined eligible

FORWARD OPERATING LOCATION BASE OPERATING SUPPORT (FOL-BOS)

Appendix F – FOL-BOS Incentive Plan Page 3 of 4 at DP#1.

3.2.3.1 Eligible. The Contractor has achieved CPARS rating of “Satisfactory” or better in all evaluated performance areas during the Option 1 period. The Contractor now becomes eligible for the 2nd incentive option and the possible contract duration becomes five years. Although eligible, this option may or may not be exercised by the Contracting Officer in accordance with

FAR 52.217-9.

3.2.3.2 Ineligible. The Contractor did not achieve annual CPARS ratings of “Satisfactory” or better in all evaluated performance areas during Option Period 1. The Contractor becomes ineligible for IOP2, therefore, the possible contract duration becomes four years.

3.2.4 Retaining Eligibility. Once the Contractor has earned an IOP, performance must be maintained at “Satisfactory” or higher throughout the periods of performance after DP #2. If performance falls below “Satisfactory,” eligibility for an earned IOP can be removed at the Contracting Officer’s discretion.

4.0 INCENTIVE RESULTS.

4.1 Within approximately 45 days of CPARS finalization, at the applicable DP described in Figure 1, the Contracting Officer will determine whether the Contractor is eligible or ineligible for a particular IOP.

4.2 The Contracting Officer will notify the Contractor as soon as practicable upon making the determination.

FORWARD OPERATING LOCATION BASE OPERATING SUPPORT (FOL-BOS)

Appendix F – FOL-BOS Incentive Plan Page 4 of 4

Figure 1 – Incentive Option Year (IOP) Decision Process

Note: The contract durations (3-yr, 4-yr and 5-yr) depicted in this chart indicates maximum periods of performance if ALL options are exercised IAW FAR 52.217-9.