Att (4) Award Fee-Plan.pdf

U.S. Department of Homeland Security U.S. Customs and Border Protection

Office of CBP Air and Marine

PERFORMANCE EVALUATION PLAN

AWARD FEE

For

National Marine Maintenance Program

May 28, 2020

TABLE OF CONTENTS

I. INTRODUCTION

II. ORGANIZATIONAL STRUCTURES FOR AWARD FEE

ADMINISTRATION

III. EVALUATION REQUIREMENTS

IV. METHOD FOR DETERMINING AWARD FEE

V. CHANGES IN PLAN COVERAGE

VI. ATTACHMENTS

Attachment A: Evaluation Periods and Available Award Fee

Attachment B: Performance Areas and Evaluation Criteria .14

B.1 Technical Performance

B.2 Timeliness………………

B.3 Cost Control Performance

B.4 Business Relations Performance

Attachment C: Award Fee Grading Table

Attachment D: Actions and Schedules for Award Fee Determinations

Attachment E: General Instructions for Evaluation and Monitoring Of Performance

I. INTRODUCTION

This plan covers the administration of the award fee provisions of Contract No. TBD dated TBD, with TBD. The contract was awarded after completion of negotiations in accordance with the provisions of RFP No.70B02C20R00000028.

The purpose of this plan is to establish a general framework for evaluating the Contractor’s performance. Accordingly, all award fee determinations shall be based on the guidelines found herein. The plan is unilaterally established by the Government and may be revised at any time to redirect emphasis.

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

A. The contract provides for maintenance and supply services for the National Marine Center.

B. The effective date of the contract is TBD.

C. The award fee percentage is (To be proposed) percent and shall be used to calculate the maximum available award fee dollars of this contract. The estimated cost and maximum available award fee for each period is subject to equitable adjustments rising from changes or other contract modifications.

D. The award fee payable will be determined periodically by the Fee Determination Official

(FDO) in accordance with this plan.

E. The Government may unilaterally change this plan, provided the contractor receives notice of the changes at least 30-days prior to the beginning of the evaluation period to which the changes apply.

F. The unearned award fee in any given period shall not be carried forward or “rolled-over” into subsequent periods.

G. The determination and the methodology for determining the award fee earned are unilateral decisions made solely at the discretion of the Government. Award fee determinations are not subject to the Disputes clause of the contract.

II. ORGANIZATIONAL STRUCTURES FOR AWARD FEE ADMINISTRATION

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

A. Contracting Officer (CO)

i) The CO is located in Washington DC.

ii) The CO is the approval authority for any substantive changes to this plan.

B. Fee Determination Official (FDO)

i) The FDO for this contract is the CBP AMO Executive Director, Mission Support.

ii) The FDO may designate an Alternate FDO when appropriate.

iii) The primary FDO responsibilities are:

(1) Establish the Performance Evaluation Board (PEB).

(2) Consider the PEB findings for each evaluation period and discuss it with the PEB chair and, if appropriate, with others such as the contractor.

(3) Determine the award fee earned for each evaluation. Ensure that the award fee earned is commensurate with and accurately reflects the contractor's performance.

Any variance between the PEB recommendation and FDO determination must be justified and documented in the official contract file.

(4) Issue and sign the Award Fee Determination Report for the evaluation period, specifying the amount of award fee and the basis for that determination.

(5) Approves changes proposed to the Performance Evaluation Plan (PEP) as addressed in Section V, as appropriate.

(6) Appoint the voting members of the PEB by memorandum.

C. Performance Evaluation Board (PEB)

i) The PEB primary responsibilities of the Board are to:

(1) Conduct ongoing evaluations of contractor performance based upon Performance

Monitor Reports and such additional performance information as may be obtained from the contractor and other sources.

(2) The PEB will evaluate the contractor's performance according to the standards and criteria stated in this performance evaluation plan.

(3) Submit a Performance Evaluation Report to the FDO covering the Board’s findings and recommendations for each evaluation period.

(4) Recommend for approval by the FDO proposed changes in the performance evaluation plan and the Program Office for significant changes.

D. PEB Chairperson

i) The PEB Chairperson is the PM.

ii) The primary responsibilities of the PEB Chairperson are to:

(1) Appoint non-voting members, if appropriate, to assist the PEB in performing its functions, e.g., a recording secretary. Appoint performance monitors for the contract effort and assure that they are providing appropriate instructions and guidance.

(2) Request and obtain performance information from other personnel involved in observing contractor performance, as appropriate.

(3) Call on personnel from various organizational units to consult, as needed, with the

PEB.

(4) Assume responsibility for the actual preparation and approval of the Performance

Evaluation Report and other documentation such as PEB minutes.

(5) Ensure the timeliness of the evaluations.

(6) Recommend appropriate changes in this plan for consideration.

(7) Meet with the contractor during the evaluation period to provide preliminary performance feedback.

E. Program Manager

i) The PM will be located at the National Marine Center.

ii) The primary responsibilities of the PM are to:

(1) Receive and analyze the Performance Monitor Reports submitted by the Performance Monitors.

(2) Monitor, evaluate, and assess Contractor performance.

(3) Prepare the Contract Performance Summary Report for the Contracting Officer

(CO).

(4) Attend all PEB meetings, record the findings of the PEB, and prepare the Performance Evaluation Report for the FDO’s review and signature in coordination with the CO.

(5) Recommend appropriate changes in this plan for consideration.

F. Performance Monitors

i) The primary responsibilities of the Performance Monitor are to:

(1) Monitor, evaluate, and assess contractor performance in assigned areas and in accordance with this award fee plan.

(2) Periodically prepare a Performance Monitor Report (PMR) for the PEB that will be submitted to the COR.

(3) Recommend appropriate changes in this plan for consideration.

EVALUATION REQUIREMENTS

The applicable evaluation requirements are included as attachments to this Performance Evaluation Plan. They are as follows:

Attachment Title Attachment

Evaluation Periods and Maximum Available Award Fee for Each Period A

Performance Areas and Evaluation Criteria B

Technical Performance B.1

Timeliness B.2

Cost Control Performance B.3

Business Relations Performance B.4

Award Fee Grading Table C

Actions and Schedules for Award Fee Determination D

General Instructions for Evaluation and Monitoring E of Performance

The percentage weights indicated in Attachment B and the grading table in Attachment C are quantifying devices. Their sole purpose is to provide guidance in arriving at a general assessment of the amount of 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 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 and provided to the contractor not later than forty-five (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.

Attachment D summarizes the principal actions and schedules involved.

A. The PEB Chairperson will ensure that a monitor is assigned for each performance evaluation factor to be evaluated under the contract. Monitors will be selected on the basis of their expertise relative to prescribed performance area emphasis. The PEB Chairperson may change monitor assignments at any time without advance notice to the Contractor. The PEB Chairperson will notify the Contractor promptly of all monitor assignments and changes.

B. The PEB Chairperson will ensure that each monitor receives the following:

i) A copy of this plan along with any changes.

ii) Appropriate orientation and guidance.

iii) Specific instructions applicable to the monitors' assigned performance areas.

C. Monitors will evaluate and assess Contractor performance and discuss the results with

Contractor personnel as appropriate, in accordance with the General Instructions for Evaluation and Monitoring of Performance, Attachment E, and the specific instructions and guidance furnished by the PEB Chairperson.

D. Monitors will submit quarterly Performance Monitor Reports and, if required, make verbal presentations to the PEB.

E. The PEB Chairperson will request and obtain performance information from other units or personnel normally involved in observing contractor performance, as appropriate.

F. The Contractor may submit self-evaluation summaries of its own and subcontractor performance to the COR and CO. Any such self-evaluations must be submitted for the period no later than ten (10) calendar days following the end of a performance period.

Contractor self-evaluations will be forwarded through the appropriate Performance Monitors, who will reconcile differences between their reports and the Contractor self-evaluations prior to the PEB meeting. Such self-evaluation summaries will be included in the PEB package.

G. Promptly after the end of each evaluation period, the PEB will meet to consider all the performance information it has obtained. As requested by the PEB Chair, monitors and other personnel involved in performance evaluation will attend the meeting and participate in discussions. At the meeting, the PEB will summarize its preliminary findings and recommendations for inclusion in the award fee letter and other documentation such as PEB minutes.

H. The COR, in coordination with the CO, will prepare the Performance Evaluation Report for the period, which will be reviewed by the PEB Chairperson and then submitted to the FDO for use in determining the award fee or additional performance period earned. The letter will include an adjectival rating and a recommended performance score with supporting documentation.

I. The FDO will consider the recommendations of the PEB, information provided by the

Contractor, if any, and any other pertinent information in determining the amount of the award fee earned or whether the performance period will be awarded 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.

J. The Contractor will be notified by the Contracting Officer of the FDO's determination.

The contractor may request a debriefing from the PEB Chairperson.

V. CHANGES IN PLAN COVERAGE

A. 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 at least 30 calendar days prior to the start of the relevant evaluation period. Significant changes to the plan will require the approval of the Contracting Officer. The changes will be made without formal modification of the contract if the plan is not incorporated into the contract.

B. Steps to Change Plan Coverage

The following is a summary of the principal actions involved in changing plan coverage for an evaluation period (actions may be modified to reflect different approval or notification levels).

Action Schedule

PEB members draft proposed revisions to PEP Ongoing

PEP revisions submitted to CO for drafting Ongoing

FDO reviews and approves* revisions to PEP At least 30 days prior to end of each period

FDO/CO notifies the Contractor regarding Not later than 30 days prior to start revisions to PEP of period

* If significant changes are made to the plan, the Contracting Officer will approve the revised plan after FDO review.

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

C. Method for Changing Plan Coverage

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

(1) 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 PEB consideration and drafting.

(2) At least 30 days prior to the end of each evaluation period, the PEB will submit its recommended changes, if any, applicable to the next evaluation period for review and approval by the FDO with appropriate comments and justification. If the changes are considered significant by the CO, the revised plan must be sent to the Contracting Officer for approval after the FDO's review.

(3) At least thirty (30) calendar days before the beginning of each evaluation period, the cognizant 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 number of work days before the beginning of the next period, then the existing plan will continue in effect for the next evaluation period.

VI. ATTACHMENTS

ATTACHMENT A

EVALUATION PERIODS AND AVAILABLE AWARD FEE

Services Maximum Period Number Start Date End Date Available Award Fee

1 01 April 2021 31 March 2022 TBD 2 01 April 2022 31 March 2023 TBD 3 01 April 2023 31 March 2024 TBD 4 01 April 2024 31 March 2025 TBD 5 01 April 2025 31 March 2026 TBD 6 01 April 2026 31 March 2027 TBD 7 01 April 2027 31 March 2028 TBD 8 01 April 2028 31 March 2029 TBD 9 01 April 2029 31 March 2030 TBD 10 01 April 2030 31 March 2031 TBD

ATTACHMENT B

PERFORMANCE AREAS AND EVALUATION CRITERIA

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

Factor/Subfactors Weight Section

Technical Performance 30% B.1 Technical Requirements B.1.1 – 12% Personnel Management B.1.2 - 10% Safety B.1.3 – 8%

Timeliness 25% B.2 Vessel Readiness Rate B.2.1 – 22% Supporting Special Requirements B.2.2 – 3%

Cost Control Performance 25% B.3 Measurement Against Estimated Costs B.3.1 – 25%

Business Relations 20% B.4 Compliance with Contract Provisions B.4.1 – 5% Subcontract Management B.4.2 – 5% Program Planning/Organization Management B.4.3 – 5% Business Management B.4.4 – 5%

B.1 Technical Performance

Factor Weight: 30%

Description of Factor: For each evaluation period, technical performance is broadly assessed as the work performed in meeting the technical requirements of assigned tasks, including a variety of subfactors related to how the work was accomplished, as indicated below:

Subfactors Considered for Evaluation:

B.1.1 Technical Requirements – 12%

The Contractor shall be evaluated on effective and efficient performance based services to meet the technical requirements and schedules as described in the Statement of Work.

This includes a subjective assessment of the quality of performance based services provided, i.e., thoroughness, accuracy of contractor performance in providing services, the timely completion of key milestones and tasks identified, and anticipating and resolving problems; recovery from delays; reaction time and appropriateness of response to changes. This will include inventory controls and processes and how the Contractor is maintaining inventory oversight. Also to be considered is the quality of monthly program reports and other required deliverables.

Evaluation of technical requirements shall also consider the following:

a. Assessment of the ability to meet the functional and performance requirements of each task;

b. Assessment of the ability to meet the schedule requirements of each task;

c. Assessment of the Contractor’s ability to identify risks; analyze their impact and prioritize them; develop and carry out plans for risk mitigation, acceptance, or other action; track risks and the implementation of mitigation plans; support informed, timely, and effective decisions to control risks and mitigation plans; and assure that risk information is communicated among all levels of the program.

B.1.2 Personnel Management – 10%

The Contractor shall be evaluated on the ability to provide staffing at appropriate skill levels to provide effective and efficient performance based services.

B.1.3 Safety – 8% The Contractor shall be evaluated on the provision of a safe work environment, including inspections and processes for accident and incident files, mishap reporting, and training.

A major breach of safety consists of an accident, incident, or exposure resulting in a fatality or mission failure; or in damage to equipment or property equal to or greater than $1 million; or in any "willful" or "repeat" violation cited by the Occupational Health and Safety Administration (OSHA) or by a state agency operating under an OSHA approved plan. In no case shall any award fee be earned by the Contractor in any evaluation period in which there is a major breach of safety.

Basis for Measuring Performance: Using the above subfactors and a standard of reasonable performance for them, the COTR and the Performance Monitors will prepare a report that addresses each aspect of the work and the associated performance metrics. On the basis of those evaluations, each Performance Monitor Report will be assigned a rating of Excellent; Very Good; Good; Satisfactory; and/or Unsatisfactory, as specified in Attachment C, Award Fee Grading Table. For each task, the Performance Monitor Report will characterize it as having major or minor impacts on overall performance in related areas and will describe any extraordinary circumstances relating to performance. These impact statements will be used by the PEB to weigh the inclusion of specific issues in the Performance Evaluation Report.

B.2 Timeliness

Factor Weight: 25%

Description of Factor: For each evaluation period, timeliness is broadly assessed as the contractor’s ability to maintain vessel availability and to support special requirements.

Subfactors Considered for Evaluation:

B.2.1 Vessel Readiness Rate – 15%

The primary application of the Timeliness factor is the contractor’s ability to maintain a vessel availability rate of 90 percent. Meeting the 90 percent vessel availability rate would entitle the contractor to a score of 1-50 points for this factor.

B.2.2. Supporting Special Requirements – 3% Timeliness also relates to the ability of the contractor to meet short suspense times in supporting special requirements such as support of special events or the testing of new equipment.

B.2.2. MRO Schedule – 7% Timeliness also relates to the ability of the contractor to meet maintenance schedules by accurately planning a reasonable maintenance schedule so a vessel’s completion is determined at time of induction into maintenance. The contractor will not be penalized when the government changes the priority of work.

B.3 Cost Control Performance

Factor Weight: 25%

Description of Factor: Cost Control includes the measure of the contractor's success in controlling actual costs against the negotiated estimated costs. The Cost Control Performance Award Fee for each period shall be evaluated and determined as described below.

Subfactor Considered for Evaluation:

B.3.1 Cost – Accuracy and ability to maintain cost performance as negotiated shall be evaluated. The cost performance shall be evaluated based on how the Contractor's (and subcontractors) actual incurred costs compared to the total negotiated estimated cost of the contract within an evaluation period. The analysis of negotiated cost control performance will give consideration to changed support requirements, changed statutory requirements, and/or changes beyond the Contractor’s control which impact contract costs.

Evaluation of cost control shall also consider the following guidelines:

a. Normally, the Contractor should be given a score of 0 for cost control when there is a significant cost overrun within its control. However, the Contractor may receive higher scores for cost control if the overrun is insignificant. Scores should decrease sharply as the size of the overrun increases.

In any evaluation of Contractor overrun performance, the Government will consider the reasons for the overrun and assess the extent and effectiveness of the Contractor's efforts to control or mitigate the overrun.

b. The Contractor should be rewarded for meeting the estimated cost, but not to the maximum score allocated for cost control, to the degree that the Contractor has prudently managed costs while meeting contract requirements.

c. An important part of cost control is ensuring the government achieves cost avoidance through the proper handling of warranty claims. The contractor is responsible for working with vendors to ensure all legitimate claims are paid and credited back to the government as part of the semi-monthly vouchering process.

performance for them, the COR and the Performance Monitors will prepare a report that addresses each aspect of the work and the associated performance metrics. On the basis of those evaluations, each Performance Monitor Report will be assigned a rating of Excellent; Very Good; Good; Satisfactory; and/or Unsatisfactory, as specified in Attachment C, Award Fee Grading Table. For each task, the Performance Monitor Report will characterize it as having major or minor impacts on overall performance in related areas and will describe any extraordinary circumstances relating to performance. These impact statements will be used by the PEB to weigh the inclusion of specific issues in the Performance Evaluation Report.

B. 4 Business Relations

Factor Weight: 20%

Description of Factor: Program and Business Management is the manner in which the Contractor plans, organizes, and controls work under the contract and implements contract provisions. It includes personnel, inter-organizational interfaces, work flow, property and materials controls, and financial management.

Subfactors Considered for Evaluation:

1. B.4.1 Compliance with contract provisions – 5% The Contractor shall be evaluated on the overall administration of the contract. This shall include accuracy and timeliness of all reporting requirements (e.g., subcontract consent documentation, On-Site Personnel Reports, property reports, financial management reporting requirements, etc.). The Contractor's responsiveness to requests for change proposals/task plans will be evaluated. This evaluation will include the submission of timely, complete proposals and cooperation in negotiating the change.

2. B.4.2 Subcontracting – 5% The Contractor will be evaluated on their overall effectiveness of managing subcontracts.

This will include the business relationship between the prime and subcontractor, the level of cooperation between the two parties and the Contractor's ability to ensure quality performance based services from subcontractors.

3. B.4.3 Program planning and organizational management - 5% The Contractor shall be evaluated on the use of personnel; recognition and correction of critical problem areas; cooperation and working relationships with other organizations' personnel; labor relations; management actions related to performance and productivity;

and response to unexpected situations.

4. B.4.4 Business Management - 5% The Contractor shall be evaluated on their local and corporate business management.

This area shall include an evaluation of the overall ability and effectiveness to respond to operational and management problems of the Contractor. The Contractor shall be evaluated on the overall effectiveness of their equipment management. This will include maintenance and availability at time of need.

performance for them, the COR and the Performance Monitors will prepare a report that addresses each aspect of the work and the associated performance metrics. On the basis of those evaluations, each Performance Monitor Report will be assigned a rating of Excellent; Very Good; Good; Satisfactory; and/or Unsatisfactory, as specified in Attachment C, Award Fee Grading Table. For each task, the Performance Monitor Report will characterize it as having major or minor impacts on overall performance in related areas and will describe any extraordinary circumstances relating to performance. These impact statements will be used by the PEB to weigh the inclusion of specific issues in the Performance Evaluation Report.

ATTACHMENT C

AWARD FEE GRADING TABLE

Range of Adjectival Performance Rating 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 as defined and measured against the criteria in the award-fee plan for the award-fee evaluation period.

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 as defined and measured against the criteria in the award-fee plan for the award-fee evaluation period.

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 as defined and measured against the criteria in the award-fee plan for the award-fee evaluation period.

Satisfactory No Greater

Than 50% Contractor has met overall cost, schedule, and technical performance requirements of the contract as defined and measured against the criteria in the award-fee plan for the award-fee evaluation period.

Unsatisfactory 0% Contractor has failed to meet overall cost, schedule, and technical performance requirements of the contract as defined and measured against the criteria in the award-fee plan for the award-fee evaluation period.

Appendix I provide detailed information on the evaluation factors, criteria for scoring and point ranges which will be used to generate the award fee recommendation.

The contractor will not be paid any award fee when the total performance points is Unsatisfactory. In order to earn a total overall rating of "Excellent," the contractor must be under cost, on or ahead of schedule, and be rated "Excellent" for Technical Performance.

ATTACHMENT D

ACTIONS AND SCHEDULES FOR AWARD FEE DETERMINATIONS

The following is a summary of the principal actions involved in determining the award fee for the evaluation periods. The PEB will establish lists of subsidiary actions and schedules as necessary to meet the schedule for principal actions.

Action Schedule

PEB Chairperson and members appointed Not Later Than (NLT) 14 workdays prior to first period

PEB Chairperson appoints Performance Monitors NLT 14 workdays prior to first period and informs Contractor

Monitors receive orientation and guidance NLT 7 workdays prior to first period

Performance Monitors assess performance Ongoing after start of the period and discuss results with Contractor

Performance Monitors submit Performance NLT 30 days after end of period Monitor Reports to PEB

PEB meets to discuss performance reports NLT 30 days after end of and prepare preliminary findings and period recommendations

PEB forwards findings and summary NLT 40 days after end of recommendations to FDO in Performance period Evaluation Report

FDO reviews and signs the award fee NLT 45 days after end of letter. CO forwards Performance period Evaluation Report executed contract modification to Contractor

Award fee payment awarded to Contractor NLT 90 days after end of

ATTACHMENT E

GENERAL INSTRUCTIONS

FOR EVALUATION AND MONITORING OF PERFORMANCE

1. Performance Monitors will prepare outlines of their assessment plans and coordinate them with the PEB Chairperson. Upon agreement with the PEB Chairperson, the Performance Monitor will discuss the plans with appropriate Contractor personnel to assure complete understanding of the evaluation and assessment process.

2. Performance Monitors 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 Performance Monitor and the Contractor receive accurate and complete information from which to prepare assessments and to plan improvements in performance. Positive performance accomplishments will be emphasized just as readily as negative ones and extraordinary circumstances will be noted in reports.

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

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

6. Performance Monitors will document assessments of Contractor performance in their reports that they will submit to the PEB at the end of each evaluation period.