Attachment JL.9, Award Fee Plan Vieques.doc

Attachment JL.9

AWARD-FEE PLAN

FOR

MUNITIONS RESPONSE ACTIONS

SOLICITATION N62470-20-R-2004 (CONTRACT NUMBER TO BE INSERTED AT TIME OF AWARD)

Table of Contents Section Title

Page 1.0

Introduction

2.0

Organization

3.0

Responsibilities

4.0

Award-Fee Processes

5.0

Award-Fee Plan Change Procedure

6.0

Contract Termination

Annexes Annex

Title

Page

Evaluation Criteria – Technical Services (CTOs)

Adjectival Rating Descriptions

Award Fee Conversion Chart

AWARD-FEE PLAN

1.0

INTRODUCTION

This award fee plan is the basis for evaluation of the contractor’s performance under Solicitation N62470-20-R-2004 (Contract number be assigned at award) Munitions Response Actions at Vieques, Puerto Rico and other sites in NAVFAC's Area of Responsibility and Worldwide, and for presenting an assessment of that performance to the Fee Determining Official (FDO). It describes specific criteria and procedures used to assess the contractor’s performance under Cost Plus Award Fee (CPAF) Task Orders (TO) and to determine the amount of award fee earned. Award-fee determinations will be made unilaterally by the FDO, in accordance with the Award Fee Plan and the recommendations of the Award-Fee Board. Award-fee determinations and the methodology for determining award fee are unilateral decisions made solely at the discretion of the Government.

The contract performance includes a one (1) year base period and four (4) one (1) year options periods, if exercised. The contractor is required to furnish munition response action services predominately to be performed on Vieques, Puerto Rico. Work may also be performed at other sites located within the area of cognizance of the Naval Facilities Engineering Command, including the continental United States, the Caribbean, Europe, Africa, Southwest Asia, Hawaii, Far East, the Caribbean, Pacific, and anywhere else as required by the Government. The munitions response actions may include investigations, removal actions, and remedial actions in terrestrial areas (on or beneath the land surface) or aquatic environments (marsh areas, surf zones, intertidal areas, or other under water areas.) The contractor shall perform services that include safely locating, identifying, recovering, evaluating, managing, and performing final disposition of munitions and other debris removed from the site as designated in individual TOs.

The award fee earned and payable will be determined by the FDO based upon review of the contractor’s performance against the criteria set forth in this plan. The FDO may unilaterally change this plan prior to the beginning of an evaluation period. The contractor will be notified of changes to the plan by the Contracting Officer, in writing, before the start of the affected evaluation period. Changes to the plan that are applicable to a current evaluation period will be incorporated by mutual consent of both parties.

2.0

ORGANIZATION

The award-fee organization consists of: the Fee Determining Official (FDO); and an Award Fee Evaluation Board (AFEB). The AFEB consists of a chairperson, the Contracting Officer, other functional area participants and the Contracting Officer Representatives (COR).

3.0

RESPONSIBILITIES

a.

Fee Determining Official. The FDO’s primary responsibilities are: review findings and recommendations of the AFEB and any other source of information deemed pertinent; approve the award fee earned and payable for each evaluation period; and approves any changes in the Award Fee Plan.

b.

Award-Fee Evaluation Board. The AFEB will be composed of key officials from NAVFAC Atlantic. They will review the evaluations submitted by the Contract Contracting Officer’s Representative (COR), Task Order CORs; the Contractor’s self-evaluation; other sources of information deemed pertinent; and proposed changes to the Award Fee Determination Plan. The Contracting Officer will notify the AFEB Chairperson when to conduct the evaluation meeting. The AFEB will prepare and forward a report summarizing its findings with a recommendation award fee amount and proposed changes to the Award Fee Plan, if applicable.

The AFEB will evaluate the Contractor’s overall TO performance and determine the percentage of award fee earned by taking into consideration the following: (a) TO ratings; (b) narratives presented by the Contract COR and/or Task Order CORs in support of TOs ratings; and (c) all other relevant factors not taken into consideration.

c.

Contracting Officer. The Contracting Officer is the liaison between the contractor and Government personnel. The Contracting Officer is responsible for coordinating the administrative actions required by the Contract COR, the AFEB and the FDO, including: l) receipt, processing and distribution of evaluation reports from all required sources; 2) scheduling and assisting with internal evaluation milestones, such as briefings; and 3) accomplishing other actions required to ensure the smooth operation of the award fee.

d.

Contracting Officer’s Representative (COR). The Contract COR is appointed by the Administrative Contracting Officer (ACO). The COR is selected on the basis of his/her technical expertise relative to the prescribed TO requirements. The Contract COR maintains written records of the contractor's performance in their assigned evaluation area(s). The Contract COR obtains ratings from the Task Order CORs so that a fair and accurate evaluation is obtained. Using the Task Order COR’s input along with the Contract COR’s written records; the Contract COR prepares and submits to the Contracting Officer end-of-period evaluation reports as directed by the AFEB.

4.0

AWARD-FEE PROCESSES

a. Award Fee Administration will be retained by NAVFAC Atlantic.

b.

Estimated Award-Fee Pool. In order to ensure the appropriate award fee is distributed over all evaluation periods, at least 40% of the potential award fee must be available for the final evaluation. Once the final evaluation has been completed, no less than 10% of the available award fee will be retained. Upon receipt of all required interim close-out paperwork the retained fee will be released to the Contractor. Each task order will contain a maximum award fee, which will be established by multiplying the total contract cost (less travel, Contractor –Acquired Property, FCCOM, award fee on cost reimbursable subcontractor’s cost at any tier, and direct charged taxes) by the award fee percentage on Attachment JL.5. The actual award fee percentage will be determined by the terms of the contract award.

c.

Available Award-Fee Amount. The amount of the Technical award fee pool measured for each TO may be adjusted due to scope changes and is subject to the Contracting Officer’s approval. The award fee pool will not be adjusted for cost overruns. Adjustments to the award fee will be made for modifications that cause an increase or decrease to the scope of the task order. Additional within scope work added by Concurrence Letter is not subject to additional fee. If it is later determined, that additional funds are required for the completion of work previously approved by Concurrence Letter, only that portion requiring additional funds will be subject to additional fee, if applicable. (NOTE: ALL REWORK WILL BE NON-FEE BEARING). The award fee earned will be paid based on the Contractor’s performance during each evaluation period. The available award fee will be calculated by developing a percentage of physical or financial completion at the end of each award fee period. The lower percentage of physical or financial completion will be used to determine available award fee for each task order.

d.

Evaluation Time Periods. The award fee evaluations will be performed on six month intervals. When specific TOs are not completed within an evaluation period, the Government will evaluate the physical completion/financial completion to date. In the event that the performance to date has not reached 25% (as measure by cost expended) or does not provide adequate information to facilitate evaluation of performance, this evaluation and associated award fee will be postponed until the next award fee period, with the exception of task orders with a total award fee pool of $100,000 or greater. For task orders with a total award fee pool of $100,000 or greater, interim evaluations will be conducted starting at 10%, as measured by cost expended.

e.

Evaluation Criteria. If the Contracting Officer does not give specific notice in writing to the Contractor of any change to the evaluation criteria prior to the start of a new evaluation period, then the same criteria listed for the preceding period will be used in the subsequent award-fee evaluation period. Any changes to evaluation criteria will be made by revising the Award Fee Plan and notifying the contractor.

f.

End-of-Period Evaluations. Both during and at the conclusion of each rating period, the Government will identify specific areas that may negatively impact the overall TO performance evaluation. The Contractor may submit a self-evaluation written report of its performance to the Contracting Officer no later than two weeks before the end of the evaluation period. After consideration of both the Contractor’s self evaluation and Government evaluations, the AFEB will prepare and forward a report summarizing the Board’s findings and recommended award fee amount to the FDO. The AFEB may also recommend any significant changes to the award fee plan for the next period for FDO approval. The FDO determines the overall rating, numerical points and earned award fee amount. The FDO letter informs the Contractor of the earned award fee amount.

g. Contractor’s Self-Assessment. When the contractor chooses to submit a self-evaluation report, it must be submitted to the Contracting Officer no later than two weeks from the end of the evaluation period. This written assessment of the Contractor’s performance throughout the evaluation period may also contain any information that may be reasonably expected to assist the AFEB in evaluating the Contractor’s performance. It is highly recommended that the Contractor follow the Award Fee Plan criteria in conducting and presenting their self-assessment, and include how they rate themselves on their performance for the period.

5.0

AWARD-FEE PLAN CHANGE PROCEDURE

a. Prior to the beginning of an evaluation period, the Contracting Officer may unilaterally change any matters covered in this plan by written notice to the Contractor.

b. Any changes to the Award Fee Plan will be forwarded to the Contractor prior to the evaluation period(s) to which it applies.

6.0

CONTRACT TERMINATION

If the contract is terminated for the convenience of the Government after the start of an award-fee evaluation period, the award fee deemed earned for that period shall be determined by the FDO using the normal award-fee evaluation process. After termination for convenience, the remaining award-fee amounts allocated to all subsequent award-fee evaluation periods cannot be earned by the contractor and, therefore, shall not be paid.

7.0

SIGNATURES

Requirements of this award fee plan have been reviewed and are recommended for approval by the Award Fee Determination Official.

Signatures to be added at award.

Annexes

1. Evaluation Criteria for Technical Services and Products, Task Management and Program Management Support, and Cost Control

2. Adjectival Rating Descriptions

3. Award Fee Conversion Chart

ANNEX 1

Evaluation Criteria – Technical Services (CTOs) Factor Description

Weight

1.

Technical Services

50%

1.a Technical Services and Products (25%)

1.b Task Management and Program Management

Support (25%)

2.

Cost Control

50%

1. TECHNICAL SERVICES (50%)

A. Technical Services and Products (25%)

a. Technical quality field work performed and deliverables.

b. Overall clarity and thoroughness of project documentation and reports, accuracy of data, soundness of conclusion, etc.

c. Responsiveness to comments and corrections made by the Government on deliverables (respond within the time frame specified by NAVFAC).

d.

Adherence to health and safety standards.

e.

Effectiveness and thoroughness of analysis.

f.

Adherence to federal, state and other regulations, procedures and guidelines (i.e. health and safety requirements, chain of custody/document control, CERCLA and RCRA regulations, etc.).

g.

Creativity in approach and recommendations.

h.

Identification of problems and proposal of alternative solutions. Demonstration that obstacles encountered are in the process of moving to resolution.

B. Task Management and Program Management Support (25%) a.

Development and maintenance of general plans and deliverables, including, but not limited to, quality control plan, contract management plan, CTO work plans.

b. Overall planning (setting schedules, setting priorities for all work, etc.). Effective planning, scheduling and reporting of work items. Prompt reporting of any delays with justification for delay.

c.

Responsiveness to the Government’s questions, phone calls, requests for information, etc. (Phone call returned within 24 hours, i.e. one working day and written requests responded to within the time specified in the correspondence).

d.

Regular and effective day-to-day support/communication with NAVFAC Atlantic and other activities/organizations involved with the sites.

e.

Suitability of staffing and resources for work to be performed. Effective use of resources. Using local labor.

f. Management of surges in workload.

g.

Compliance with contract requirements and task order requirements (minimal frequency and severity of incidents of noncompliance or need for Government directed corrections of the Contractor’s financial and management systems).

h.

Promptness in reporting change in field conditions (within 24 hours of encountering changed conditions, i.e. one working day).

i. Timeliness, accuracy, and completeness of monthly reports.

j.

Selection of appropriate subcontractors and effective coordination of subcontractor work, proper cost, schedule and quality.

k.

Contractor’s PM control of the quality of work performed.

l.

Adherence to schedules. Adjust schedules and priorities while still maintaining the overall completion date.

m. Timeliness of deliverables.

n. Property management.

2.

COST CONTROL (50%)

a.

Effective management of budget, accounting, and reporting systems.

b. Development and maintenance of planned budgets for task orders (i.e., prompt reporting of project cost variances).

c.

Proactive efforts to minimize cost to perform TO, such as minimizing travel or other recommended cost savings (i.e., less/different field work). All is accomplished while still producing a quality product.

d.

Effective management of subcontractor’s budget.

e.

Timeliness of 75% notification.

f.

Accuracy of current and projected cost reporting.

g. Accuracy and reasonableness of invoices.

ANNEX 2

ADJECTIVAL RATING DESCRIPTIONS

EXCELLENT

· 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.

· Contractor practices proactive management to identify and anticipate problems prior to adverse impact. Contractor provides organized and detailed alternatives including risk assessments, trade off analysis between cost, schedule and performance, plan of action and implementation schedule. Solutions are implemented with no impact to estimated cost and schedule.

· Contractor demonstrates a highly effective Quality Management Program and Health &

Safety Program with no deficiencies.

· Contractor demonstrates outstanding management and execution of large and/or simultaneous TOs, if applicable.

· Reductions in direct costs to the Government below contract estimated costs are noteworthy. Provides detailed cost analysis in recommendations to the Government for resolution to problems identified. Funds and resources are optimally used to provide the maximum benefit for the funds and resources.

VERY GOOD

· 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.

· Contractor identifies all problems timely and practices minimal proactive management to identify and anticipate problems prior to adverse impact. Contractor provides sufficient information on all alternative solutions. Solutions are implemented with no impact to estimated cost and schedule.

· Contractor demonstrates an effective Quality Management Program and Health &

Safety Program.

· Contractor demonstrates excellent management and execution of large and/or simultaneous TOs, if applicable.

· Provides measures for controlling all costs below contract estimated costs. Considers logistic and long-term costs in recommendations to the Government. Funds and resources are always used in a cost-effective manner. No resource management problems.

GOOD

· 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.

· Contractor identifies all problems timely. Contractor provides sufficient information on all alternate solutions. Solutions are implemented with limited adverse impact to estimated cost and schedule.

· Contractor demonstrates a Quality Management Program and Health & Safety Program with identified deficiencies that are insignificant.

· Contractor demonstrates good management and execution of large and/or simultaneous TOs, if applicable.

· Provide a measure for controlling all costs at or slightly below contract estimated costs.

Provides good cost control of all costs during contract performance. Funds and resources are generally used in a cost-effective manner. No major resource management problems apparent.

SATISFACTORY

· 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.

· Contractor identifies some problems timely. Contractor provides sufficient information on some alternate solutions. Solutions are implemented with limited adverse impact to estimated cost and schedule.

· Contractor demonstrates a Quality Management Program and Health & Safety Program with identified deficiencies that are minor. A plan is in place to correct the deficiencies.

· Contractor has demonstrated adequate management and execution of large and/or simultaneous TOs, if applicable.

· Provides reasonable measures for controlling costs. Controls subcontractor cost performance to meet program objectives. Funds and resources are sometimes used inefficiently in pursuing program goals. Occasional minor resource management problems.

UNSATISFACTORY

· 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.

· Contractor fails to identify problems timely. Solutions, when and if implemented, have a negative impact on cost and schedule.

· Contractor’s Quality Management Program and Health & Safety Program has major

Deficiencies.

· Contractor demonstrates a lack of management and execution of large and/or simultaneous TOs, if applicable.

· Significant cost increases due to inadequate performance.

ANNEX 3

AWARD FEE CONVERSION CHART

Earned Numerical Points

Adjective Rating Percentage of Avail. AF Pool

100 100

EXCELLENT

VERY GOOD

GOOD

SATISFACTORY

ETC

0 0

UNSATISFACTORY