Attachment 14 - USFK_Incentive_Disincentive_Language_Examples.docx

ATTACHMENT 15 -USFK– INCENTIVE AND DISINCENTIVE EXAMPLES

1.22 SERVICE LEVEL INCENTIVE/DISINCENTIVE

In accordance with Sections 1.8.1 and 1.8.4 (a) – (e), the contractor is required to provide customer service 24 hours a day, seven (7) days a week, and 365 days a year. This required service level performance element is to be tracked, measured and reported by the contractor on a monthly basis. The contractor is required to provide the DTMO COR and Program Manager read-only access to the contractor’s telephone reporting system NLT 90 calendar days after task order award for quality assurance and auditing purposes IAW PWS Section 1.8.17.

On an annual basis, if it is in the best interest of the government to exercise the next option, the applicable regular (non-incentive pricing), incentive, or disincentive pricing will be determined and effective for the following option year. For a MSF pricing model, the five (5) percent incentive or ten (10) percent disincentive will be applied to the monthly invoice amount. The CO will notify the contractor which pricing is applicable to the next option period thirty days prior to the next option period.

During the base period of performance, incentive and disincentive ratings will not be assessed for the first 30 days following the 90-day transition period. This means the contractor will be rated for six (6) months of the base period. The rating will be based on the six previous Telephone reports (PWS 1.13.7.1) provided monthly and confirmed with the DTMO audit of the contractor’s Telephone reporting system.

Incentive pricing will take effect during Option 1 if:

- The contractor’s service level is rated 95% or higher for four (4) of the six (6) months;

- None of the rated months fall below the 70% service level;

- Two of the three requirements from PWS Section 1.8.4.c. were met

Incentive effective for Option 1 Example:

· Example Base Period January 2025 – January 2026

· Four of six months are rated 95% or higher

· None of the rated months fall below 70%

· Two of the three requirements specified in 1.8.4.c. have been met:

Disincentive pricing will take effect during Option 1 if:

· The contractor’s service is rated less than 70% four (4) of the six (6) months

· The contractor fails to meet two of the three requirements specified in 1.8.4.c.

Disincentive Pricing effective for Option 1 Example:

· Base Period January 2025 – January 2026

· The contractor failed to meet 70% service levels four (4) of six (6) months; and

· The contractor did not meet two of the three requirements specified in 1.8.4.c.

If the contractor’s service level is not rated 95% or higher for four (4) of the six (6) months, and none of the rated months fall below the 70% service level, then regular (non-incentive pricing) will be in effect during Option 1.

Regular Pricing (No Incentive or Disincentive) effective for Option 1 Example:

· Base Period January 2025 – January 2026

· Four of six months were not rated 95% or higher

· None of the rated months fell below 70%

To achieve an incentive for option years two (2) through four (4), the Contractor must:

· Achieve 95% or higher SLA for eight (8) of the twelve (12) months during the previous option year;

· Not be rated less than 70% for any month in the previous option year. The rating will be based on the twelve previous Telephone Reports (PWS 1.13.7.1) provided monthly and confirmed with the DTMO audit of the contractor’s telephone reporting system.

Incentive effective for Options 2 through 4 Example:

· Eight (8) of previous twelve months rated 95% or higher

· Two (2) of the three (3) requirements specified in 1.8.4.c. were met

· None of the rated months fall below 70%

Disincentive pricing will take effect during Options 2 through 4 if:

· The contractor’s service is rated less than 70% eight (8) of the twelve months of the preceding option year

· The contractor fails to meet two (2) of the three (3) requirements specified in 1.8.4.c.

Disincentive effective for Options 2 through 4 Example:

· Eight (8) of previous twelve months were not rated 95% or higher

· Four (4) of the rated months fell below 70%

· The contractor did not meet two (2) of the three (3) requirements specified in 1.8.4.c.

Regular Pricing (No Incentive or Disincentive) effective for Options 2 through 4 Example:

· Eight of the previous twelve months were not rated 95% or higher

· None of the rated months fell below 70%

· The contractor met two of the three requirements specified in 1.8.4.c.