Attachment J-4 Award Fee Evaluation Plan (1).docx

ATTACHMENT J-4

AWARD FEE EVALUATION PLAN

FOR Contract ______________with _____________

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 No. ______________, dated __________, with ___________. The contract was awarded after completion of negotiations in accordance with the provisions of RFP No. 72016921R00001.

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

a. The contractor is required to provide technical assistance to strengthen a Media sector in Serbia.

b. The term of the contract is from _________ through __________.

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

d. The maximum available award fee is $__________.

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

g. The award fee payable will be determined periodically by the Fee Determination Official (FDO) in accordance with this plan.

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

i. 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 cognizant Contracting Officer.

b. Primary FDO responsibilities are:

(i) Determining the award fee earned and payable for each evaluation period as addressed in Part IV.

2. Changing the matters covered in this plan as addressed in Part V as appropriate.

3. Award Fee Board (AFB)

a. The Chair of the AFB is the Director of USAID/Serbia’s Office of Democratic and Economic Growth Office or his/her designee . The following are voting members of the AFB: Program Strategy and Communication Office (PSCO) director or his/her designee 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 a 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.

4. Performance Monitoring

a. The Contracting Officer’s Representative (COR) will prepare Performance Monitoring Reports, as well as written comments on the Contractor’s self-assessment. 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, as part of its regular quarterly report, a self-assessment of progress toward achieving indicators and milestones as established in its Annual Work Plan. These written documents will be part of the record for the Performance Evaluation Board.

III. Evaluation Requirements

The applicable evaluation requirements are attached as indicated below.

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

Maximum Award Fee Available

Media Innovation Activity

2. Award Fee Criteria and Weights

Factors:

1. Business and technological development: The Contractor will be evaluated on its performance in providing effective support for Beneficiaries’ business and technological development. This will be assessed based on increase in Beneficiaries revenues or operating profits over the baseline (increase in Beneficiaries’ revenues or operating profits prior to USAID intervention expressed in %). The Contractor may propose other key indicators that will measure an increase in Beneficiaries’ business and technological capacity and skills. This indicator must be verifiable through independent metrics - an objective measurement of the quality of performance-based services provided. Independent third-party metrics can include annual statements from the Business Registry (APS) or independent audit.

2. Leveraged third party capital/investments: The Contractor will be evaluated on its performance in providing effective support for leveraged third party funding to supplement USAID funds (grants under contract). This will be assessed based on effective utilization of USAID grants under contract to mobilize third- party financing, capital or technological investments for Beneficiaries. Third party guarantees to mitigate investment and financial risks related to Beneficiaries' business can be considered as third- party financing, as well as effective partnerships with the private sector in providing high-tech solutions, know-how or investing high-tech assets for Beneficiaries’ business and technological development. This factor will measure a percentage of mobilized third party capital/investments compared to the utilized amount of USAID grants under contract (e.g. 50% leverage means that USAID grants under contract have been matched with 50% of third party contributions as described above). The Contractor may propose other key indicators that will measure Beneficiaries’ access to third party capital and/or investments. This indicator must be verifiable through documented transactions, guarantees, or committed funds (for example total committed investment capital) as well as market value of the technological investments (e.g. market value of licenses, or market value of high-tech know-how transfers through training and similar means).

3. Increased Beneficiaries’ market share: The Contractor will be evaluated on its performance in increasing Beneficiaries’ reach (reach refers to the total number of different people or households exposed, at least once, to a medium during a given period), number of verifiable consumers, increase in audience or similar indicator that can prove increase in Beneficiaries’ public influence and market share over baseline period (expressed as an increase in Beneficiary market share prior to USAID intervention in %). The Contractor may propose other key indicators that will measure Beneficiaries’ market share. This indicator must be verifiable through third-party statistics (e.g. google analytics; third party market/audience/user assessment or analytics, or similar means).

Percentage increase over award fee period baseline value. USAID and the Contractor will agree on a realistic baseline value.

3. Grading Table

Ratings will be equally allocated to all above performance factors (Business and technological development; Leveraged third party capital/investments; Increased market share). Rating represents sum of cumulative values - not to exceed 100 % - represented by weights for each factor described above. In assessing contractor’s performance, USAID will take the following grading table in account:

The percentage weights indicated, and the grading table above are 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 or subfactor 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 50 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 all 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. After the end of each evaluation period, the AFB will meet to consider all the performance information it has obtained. At the meeting, the AFB may also hear from the COR, the contractor, and any other appropriate personnel. This meeting is to inform the AFB’s recommendation to the FDO. Further, the contractor will be given an opportunity to submit concise written information on its behalf, including an assessment of its performance during the evaluation period. After the AFB has reviewed and considered submitted performance information, the AFB may give the contractor the opportunity to provide a brief oral presentation with Q&A with the AFB for the purposes of clarifying submitted performance information.

5. Within 5 days of the above step, the AFB Chair will prepare the 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 AFB Chair will notify contractor of the AFB evaluation and recommended rating and score. The contractor may provide additional information for consideration to the FDO. When submitting the report, the Chair will inform the FDO whether the contractor desires to present any matters to the FDO before the award fee determination is made. The consideration of additional information is at the discretion of the FDO.

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.

13. FDO makes final determination on award fee.

NLT 50 days after end of each period

*For the purposes of establishing submission due dates, references in the above table to “end of each period” shall for the Y3 evaluation process be counted from the June 1, 2020. This shall not change dates/evaluation periods for the table under III.1.

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 outlines of their assessment plans, discuss them 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, as part of its regular quarterly report, a self-assessment of progress toward achieving indicators and milestones as established in its Annual Work Plan. These written documents will be part of the record for the Performance Evaluation Board.