Attachment_JL14_Award_Fee_Plan.doc

Attachment JL.14

AWARD-FEE PLAN

FOR

ENVIRONMENTAL REMEDIAL ACTION CONTRACT

N62470-22-R-9014

APPROVED:

Fee Determining Official Acquisition Director NAVFAC Atlantic 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

Program Management Task Order Evaluation Criteria

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 contract N62470-22-R-9014 Multiple Award Contract for Environmental Remedial Action Services (MAC RAC II) and or 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 option periods, if exercised. The contractor is required to furnish program management and technical services in support of the Environmental Remedial Action Contract.

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 (optional); 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 their 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 10% of the potential award fee must be available for the final evaluation. In order for a TO to be evaluated at 100% completion, the TO must be technically complete with only a few minor items and/or closeout items to finalize. 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, direct charged taxes, and JV fees/mark-ups) by the award fee percentage proposed for that task order, not to exceed the award fee ceiling rate proposed on Attachment JL.5 for that cost element. (See Section G10-Award Fee Calculation and Payment of the contract.) 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, unless sufficient documentation is provided by the Contractor to support a higher fee evaluation.

d.

Program Management Office (PMO) Award Fee Amount. For each TO, a Program Management Office award fee amount equal to 10% of the total Technical award fee applicable to the individual TO shall be deducted to form a separate PMO Award Fee Pool. The PMO award fee shall be evaluated in conjunction with the final Technical Award Fee Evaluation for the task order.

e.

Evaluation Time Periods. The award fee evaluations will be performed on six month intervals. The Contractor shall submit their award fee evaluation request within 30 days from the end of the award fee evaluation period. 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% 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.

f.

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.

g.

End-of-Period Evaluations. Both during and at the conclusion of each rating period, the Government will identify specific areas/task orders that may negatively impact the overall performance evaluation. The Contractor may submit a self-evaluation (optional) written report of its performance to the Contracting Officer and Contract COR after notification that there are specific areas/task orders that may negatively impact the overall performance evaluation. Accordingly, the costs associated with such effort will not be allowed as a direct charge under the contract. After consideration of both the Contractor’s self-evaluation/assessment (optional) 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.

h. Contractor’s Self-Assessment (optional). This written assessment of the Contractor’s performance throughout the evaluation period should contain any information that may be reasonably expected to assist the AFEB in evaluating the Contractor’s performance. Costs associated with such effort will not be allowed as a direct charge under the contract. It is highly recommended that the Contractor follow the Award Fee Plan criteria in conducting and presenting their self-assessment.

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.

Jennifer McDonald

Date

Contracting Officer

Division Director, ACQ2 NAVFAC Atlantic

Annexes

1. Evaluation Criteria for the Program Management (PMO) Task Order

2. Evaluation Criteria for the Technical Services Task Order

3. Definitions of Ratings

4. Award Fee Conversion Chart

ANNEX 1 PROGRAM MANAGEMENT (PMO) TASK ORDER EVALUATION CRITERIA

Factor Description

Weight

1.

Program Execution/Quality Management

40%

2.

Schedule and Cost Control

40%

3.

Subcontractor and Consultant Management

20%

1. Program Execution/Quality Management: (40%) a.

Demonstrated commitment to accelerate overall “Clean Up” process.

b.

Overall planning as it relates to the PMO (setting schedules, setting priorities for all work, etc.).

c.

Responsiveness to NAVFAC requirements (phone calls returned within one working day and written responses within the time period specified).

d.

Management of surges in workload.

e.

Management of many ongoing TOs simultaneously.

f.

Regularity and effectiveness of day-to-day support/communications with NAVFAC personnel.

g.

Effective use of resources.

h.

Suitability of staffing, recruiting, and training of personnel.

i.

Effectiveness of PMO staff to provide quality control and manage an effective Health and Safety Program.

j.

Overall effectiveness of personnel performing work.

k.

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

l.

Development and maintenance of general plans and deliverables related to the PMO (Contract Management Plan, Quality Control Management Plan, etc.).

m.

Property management (GFE and Contractor Acquired Property).

n.

Adherence to cost accounting principles including interim closeout procedures.

o.

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

p.

Effectiveness of contractor’s purchasing system, if applicable.

q.

Maintain approved management systems (i.e. accounting system).

r.

Effective management of completion of field work and response to Government task order closeout requirements.

s.

Successful collaboration initiatives with other contractors.

t.

Effective management to identify and anticipate problems and present problems with viable alternative solutions.

u.

Cohesive management and implementation of Joint Venture efforts from both PMO and TO perspectives, if applicable.

2. Schedule and Cost Control (40%) a.

Timeliness, accuracy and completeness of monthly reports, minutes of monthly meetings, agenda items, action items, etc.

b.

Development and maintenance of planned schedules for the contract (i.e., prompt reporting of any delays with justification for that delay).

c.

Adjust schedules and prioritize requirements for deliverables provided by the PMO and the contract in general (i.e., ability to expedite schedules for specific TOs when needed).

d.

Development and maintenance of planned budgets for the contract (i.e., prompt reporting of project cost variances).

e.

Minimization and control over cost of the PMO and the contract in general including minimization of travel costs, wage escalation rates, etc.

f.

Accuracy and reasonableness of invoices.

3. Subcontractor and Consultant Management (20%)

a. Selection of appropriate subcontracts or consultants.

b.

Effective control of costs and resources.

c.

Timely and adequate schedule submission and management of actual performance.

d.

Effective communication resulting in efficient coordination and management.

e.

Compliance with all applicable contract clauses, provisions, and reporting requirements.

NOTE: While all categories are important, Program Execution/Quality Management and Schedule and Cost control are assigned a greater weight than Subcontractor and Consultant Management.

ANNEX 2 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 of deliverables and any field work performed.

b.

Clarity and thoroughness of project documentation.

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 of implementation plan.

b.

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).

c.

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

d.

Suitability of staffing and resources for work to be performed.

e.

Compliance with contract and TO requirements.

f.

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

g.

Accuracy of monthly status report.

h.

Effective coordination of subcontractor work, proper cost, schedule and quality.

i.

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

j.

Effective planning, scheduling and reporting of work items.

k.

Adherence to schedules.

l.

Adjust schedules and priorities still maintaining the overall completion date.

m.

Timeliness of deliverables.

2.

COST CONTROL (50%)

a.

Effective management of budget, accounting, and reporting system.

b.

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.

c.

Effective management of subcontractor’s budget.

d.

Timeliness of 75% notification.

e.

Accuracy of current and projected cost reporting.

NOTE: The above categories are equally important.

ANNEX 3

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.

· Highly effective implementation of the subcontracting goals.

· 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 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.

· Successful implementation of the subcontracting goals.

· 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 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.

· Adequate attainment of most of the subcontracting goals.

· 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 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 that are minor. A plan is in place to correct the deficiencies.

· Contractor has demonstrated adequate management and execution of 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.

· Failure to meet subcontracting goals.

· 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 simultaneous TOs, if applicable.

· Significant cost increases due to inadequate performance.

ANNEX 4

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