Award Fees Attachment J3.pdf
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- Solicitation number
- BNATCS2
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This document is an Attachment J-3 detailing Performance Award Fees for a federal contract, specifically outlining a comprehensive performance-based compensation structure for multiple Air Traffic Control System modernization milestones. The award fee schedule covers 12 distinct technology replacement and upgrade initiatives, including Voice Switch Replacement, TDM to IP Site Replacement, Airborne Radar, ARTCC Replacement, Radio Site Replacement, and others, with incremental performance milestones spanning from September 2026 to September 2029.
The performance award fees are structured to incentivize progressive site operational achievements, with percentages ranging from 0.25% to 4% per milestone depending on the percentage of sites completed. Each initiative has specific quantitative targets (total sites) and corresponding deadlines. Additionally, the contract includes a unique cost-share incentive where the FAA will pay a bonus equal to 20% of net savings recognized in operations and maintenance costs from retiring old technologies, with the exact amount to be negotiated between the Government and the Integrator. The total potential award fee pool is not explicitly totaled in the document, but encompasses multiple percentage increments across the listed initiatives.
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Attachment J-3, Performance Award Fees per H.23.1
H.23.1 Cost Plus Award Fee
Performance Award fees under the contract are based upon objectives. One performance pool will apply during the contract. The performance pool will be subject to negotiation between the Government and the Integrator. Performance award fees may be earned for meeting or exceeding the objectives as defined in attachment J-3.
Milestone Deliverable Quantity Final Deadline
Award Fee amount
Voice Switch Replacement Site Operational in NAS 25% of all sites Sept. 30, 2026 1%
50% of all sites Sept 30, 2027 1%
75% of all sites Sept 30, 2028 1%
100% of all sites (462 total)
Sept.30, 2029 2% (5% total)
TDM to IP Site Replacement
Site Transitioned to IP 33% of remaining Sites Oct. 2026 3%
66% of remaining Sites Oct.2027 3%
100% of Sites 4,640 Sites Completed
Oct.2028 4% (10% total)
Airborne Radar Site Operational in NAS 50% of all sites Sept. 2026 2%
100% of all sites (612 total)
Sept. 2027 3% (5% total)
ARTCC Replacement
Site Selection Study
6%
Land Acquisition
25, 50, 75, 100% Design
Construction
Consolidation of TRACONs
Land Acquisition
5%
25, 50, 75, 100% Design
Construction
Radio Site Replacement Site Operational in NAS 25% of all Sites Sept. 2026 0.5%
50% of all Sites Sept. 2027 0.5%
75% of all Sites Sept. 2028 0.5%
100% of all Sites (2771 Total)
Sept. 2029 2.5% (4% Total)
E-IDS Site Installation Site Operational in NAS 25% of all Sites Sept. 2026 0.5%
50% of all Sites Sept. 2027 0.5%
75% of all Sites Sept. 2028 0.5%
100% of all Sites (435 Total)
Sept. 2029 2.5% (4% Total)
TFDM Site Operational in NAS 25% of all Sites Sept. 2026 0.5%
50% of all Sites Sept. 2027 0.5%
75% of all Sites Sept. 2028 0.5%
100% of all Sites (89 Total)
Sept. 2029 2.5% (4% Total)
Surface Movement Radar Site Operational in NAS 25% of all Sites Sept. 2026 0.5%
50% of all Sites Sept. 2027 0.5%
75% of all Sites Sept. 2028 0.5%
100% of all Sites (53 Total)
Sept. 2029 1.5% (3% Total)
Surface Awareness Initiative Site Operational in NAS 25% of all Sites Sept. 2026 0.25%
50% of all Sites Sept. 2027 0.25%
75% of all Sites Sept. 2028 0.25%
100% of all Sites (200 Total)
Sept. 2029 0.25% (1% Total)
Runway Entrance Lighting System Site Operational in NAS TBD Sept. 2029 1%
Alaska Weather/DYAASI Site Operational in NAS 25% of all Sites Sept. 2026 0.25%
50% of all Sites Sept. 2027 0.25%
75% of all Sites Sept. 2028 0.25%
100% of all Sites (174 Total)
Sept. 2029 0.25% (1% Total)
Tower Simulation System Site Operational in NAS 25% of all Sites Sept. 2026 0.25%
50% of all Sites Sept. 2027 0.25%
75% of all Sites Sept. 2028 0.25%
100% of all Sites (90 Total)
Sept. 2029 0.25% (1% Total)
Unstaffed Infrastructure Replacement Site Operational in NAS 25% of all Sites Sept. 2026 0.25%
50% of all Sites Sept. 2027 0.25%
75% of all Sites Sept. 2028 0.25%
100% of all Sites (140 Total)
Sept. 2029 0.25% (1% Total)
FMDS
25, 50, 75, 100% Design TBD 0.25% Operational Demonstration
TBD 0.75%
Full Deployment 115 TBD 1%
Common Automation
25, 50, 75, 100% Design TBD Operational Demonstration
TBD
Full Deployment TBD
Alaska Automation Capability
Operational Demonstration
TBD
Full Deployment 3 5%
Cost-share incentive: In addition, the FAA will pay an incentive bonus equal to 20% of the net savings FAA recognizes in operations and maintenance costs from retiring old technologies and equipment. The amount of the cost savings pool shall be negotiated between the Government and the Integrator.
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