Attachment 1 - Award Fee Plan_72016721R00007_Kosovo Municipal Integrity.pdf

Attachment 1 – AWARD FEE PLAN

KOSOVO MUNICIPAL INTEGRITY ACTIVITY

FOR Contract No. TBD with the CONTRACTOR TBD

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 # TBD, dated TBD, with CONTRACTOR TBD. The contract was awarded after completion of negotiations in accordance with the provisions of RFP No. SOL#72016721R00007.

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

a) The contractor is required to provide technical assistance to address long-standing challenges related to corruption and poor quality service delivery by the Government of Kosovo by enhancing public financial management (PFM), with a focus on municipal procurement, and by reinforcing accountability mechanisms both within government and outside of government through civil society, the private sector, and media.

b) The term of the contract is from TBD through TBD.

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

d) The maximum available award fee is $TBD.

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

f) The award fee payable will be determined periodically by the Fee Determination Official

(FDO) in accordance with this plan.

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

h) 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/Kosovo Regional Acquisition and Assistance Office.

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 Director /Deputy Director of USAID/Kosovo’s Office of Democracy and Governance. The following are voting members of the AFB: a member from USAID/Kosovo technical offices 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 an 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 of each evaluating period. 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 a self-assessment report at the end of each evaluation period, from Year 1 to Year 5, in response to the evaluation factors set for the respective evaluating period, describing the progress toward achieving indicators and milestones as established in the Annual Work Plan. Self-assessment report in each evaluating period will be included as a standalone document at the end of each evaluating period, see the schedule for submission in section VI below. These written documents will be part of the record for the Performance Evaluation Board.

III. EVALUATION REQUIREMENTS

The applicable evaluation requirements are indicated below.

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

Period of Performance

Evaluation Period*

(Start/End date)

Estimated Percentage of

Award Fee Available

Estimated Amount of Award Fee Available

Earned Award Fee Amount

First Evaluation Period (six-months evaluation of Year 1)

/2021 -/2022 TBD TBD

Second Evaluation Period (end of Year 1) /2022 -/2022 TBD TBD Third Evaluation Period (end Year 2) /2022 -/2023 TBD TBD Fourth Evaluation Period (end of Year 3) /2023 -/2024 TBD TBD

Fifth Evaluation Period (end of Year 4) /2024 - /2025 TBD TBD Sixth Evaluation Period (end of Year 5) /2025 - /2026 TBD TBD Maximum Award Fee Available 100% TBD

2) Award Fee Criteria and Weights

The Award Fee Criteria and Weights for Evaluation Periods 1-2 are different from the Award Fee Criteria and Weights for Evaluations Periods 3-6 because USAID envisions a shift in emphasis for impactful implementation as the project progresses.

3) Evaluation Period 1-2 Award Fee Criteria and Weights

Factors Assigned Weight

1. Mobilization:

The ability of the contractor to quickly mobilize the field staff/team, especially the key personnel, timely mobilization of team to conduct initial activity assessments, selection of the focus municipalities, deployment of the embedded municipal advisers and effectively position the project to ensure that the planned activities are completed without delay.

50%

2. Quality of interventions:

The quality of the contractor’s interventions and how much they move the project towards meeting the objectives as well as ensures sustainability or self-reliance of the targeted institutions.

30%

3. Management:

How responsive and effective is the relationship between the contractor’s personnel and

USAID.

20%

4) Evaluation Periods 3-6 Award Fee Criteria and Weights

Factors Assigned Weight

1. Adaptability and Sustainability:

The degree to which the contractor’s interventions increase effectiveness and maximize program impact by implementing adaptive programming as well as ensures sustainable impact.

50%

2. Scaling up success:

Ability to scale up success by quickly rolling-out and sharing successful solutions with other non-focus municipalities and other institutions to ensure KMI results have a greater impact.

30%

3. Management:

How responsive and effective is the relationship between the contractor’s personnel and

USAID.

20%

5) Grading Table

The following Ratings and Descriptions will be used for Evaluation Periods 1- 6:

Adjectival Rating

Range of Perf.

Points

Description

Excellent 91-100% Contractor has exceeded the award-fee criteria and has met overall cost, schedule, and technical performance requirements of the contract in the aggregate 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 award-fee criteria and has met overall cost, schedule, and technical performance requirements of the contract in the aggregate 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 award-fee criteria and has met overall cost, schedule, and technical performance requirements of the contract in the aggregate 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 in the aggregate 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 in the aggregate as defined and measured against the criteria in the award-fee plan for the award-fee evaluation period.

The percentage weights indicated, and the grading table above is 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.

Any factor receiving a grade of “unsatisfactory” will be assigned zero performance points for purposes of calculating the award fee amount. The contractor will not be paid any award fee when the total award fee score is "unsatisfactory".

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 annual Performance Monitor 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. The AFB will obtain information from the COR, the contractor, and any other appropriate personnel. The contractor will be 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. The AFB may request a meeting with the contractor to discuss issues and performance.

5) Within 5 days after the AFB meeting, the AFB Chair, in conjunction with the COR, will prepare an 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. 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

3. COR assesses performance and discusses results with the contractor.

Ongoing after start of period

4. Contractor submits self-assessment report in the end of each evaluation period, for Year 1 to Year 5

NLT the end date of each evaluation period.

5. COR submits Performance Monitoring Reports to AFB.

NLT 15 days after the end of each evaluation period.

6. AFB considers COR’s Performance Monitoring Report, Contractor’s Self-Assessment report and other requested performance information.

Ongoing

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

NLT 30 days after end of each evaluation period

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

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

NLT 40 days after the end of each evaluation period

10. FDO makes final determination of the award fee.

NLT 45 days after the end of each evaluation 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 an outline of his/her assessment plan, discuss it 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 self-assessment reports for each evaluation period, in response to the evaluation factors set for the respective evaluating period, describing the progress toward achieving indicators and milestones as established in the Annual Work Plan.