Appendix I - C-20 C-37 Performance Incentive Document.pdf

APPENDIX I

PERFORMANCE INCENTIVE DOCUMENT (PID)

DRAFT

C-20 / C-37 CONTRACTOR LOGISTICS SUPPORT (CLS)

20 Jun 2023

Table of Contents

Section

Title

Page

1 Introduction 1

2 Responsibilities 1

3 Incentive Processes 1

4 Performance Incentive Document Change Procedur 2

5 Contract Termination 2

Annex

Title

Page

1 Incentives Available for Evaluation Periods 3

Appendix I: C-20 / C-37 PID

PERFORMANCE INCENTIVE DOCUMENT (PID)

1. INTRODUCTION

This PID is the basis for the C-20 / C-37 CLS contract transition period monthly payments and for evaluating and incentivizing the contractor’s performance in completing transition activities on schedule and meeting negotiated high-value asset (HVA) repair turn-around time (TAT) targets. The Contractor is incentivized to meet the transition schedule to avoid being penalized through withholds from the final monthly payment for the transition period. The Contractor is further incentivized to meet negotiated HVA repair TAT targets to avoid being penalized through withholds from payments for each HVA repair. The asset category HVA includes aircraft landing gear and auxiliary power units (APU). Actual methodology for determining these withholds is a unilateral decision made solely at the discretion of the government; however, the determination is subject to the Disputes Clause (FAR 52.233-1) of the contract.

The withholds will be determined by the Procuring Contracting Officer (PCO) based upon review of the Contractor’s performance against the criteria set forth in this plan. (See Paragraph 4). The PCO may unilaterally change this plan prior to the beginning of a new evaluation period.

The Contractor will be notified of changes to the plan by the PCO, in writing, before the start of the affected evaluation period. Changes to this plan that are applicable to a current evaluation period will be incorporated by mutual consent of both parties.

2. RESPONSIBILITIES

a. Procuring Contracting Officer (PCO). The PCO is the liaison between Contractor and Government personnel. The PCO maintains all records of the Contractor’s performance, including, but not limited to, interim evaluations from all performance monitors, end-of-period evaluations from all performance monitors, PCO letters, and any other data requested. The PCO is the only individual authorized to obligate the Government.

b. Program Manager (PM). The Government PM will maintain written records of the Contractor’s performance in their assigned evaluation area(s) so that a fair and accurate evaluation is obtained. PMs will maintain delivery order tracking and provide data to the PCO for reconciliation. PMs prepare interim and end-of-period evaluation reports as directed by the PCO and must provide justification for their ratings in the specific area(s) of responsibility.

3. INCENTIVE PROCESSES

a. Incentive Withhold Amount. The withhold amount for each evaluation period is shown in Annex 1. The withhold will be based on the Contractor’s performance during each evaluation period.

b. Evaluation Criteria. If the PCO 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 changed criteria will be used in the subsequent incentive evaluation period. (See Paragraph

4. PERFORMANCE INCENTIVE DOCUMENT (PID) CHANGE PROCEDURE

The PCO, in coordination with the C-20 / C-37 Program Office, approves changes to this PID.

Examples of significant changes include changing evaluation criteria, adjusting weights to redirect Contractor’s emphasis to areas needing improvement, and revising the withholds. The Contractor may recommend changes to the PCO no later than 10 calendar days prior to the beginning of the new evaluation period. If approved, the PCO shall notify the Contractor in writing of any change(s) to this PID. Unilateral changes may be made to the PID if the Contractor is provided written notification by the PCO 10 calendar days before the start of the upcoming evaluation period. Changes affecting the current evaluation period must be by mutual agreement of both parties.

5. CONTRACT TERMINATION

a. Termination for Convenience. If the contract is terminated for the convenience of the Government (in accordance with Federal Acquisition Regulation (FAR) 52.249-2, Termination for Convenience of the Government (Fixed-Price)), the amount of withhold to which the Contractor is subject to shall be determined as follows:

(1) Percentage of phase-in payment earned or earnable by the Contractor for phase-in evaluation periods completed prior to the effective date of the termination will not be affected by the termination.

(2) Percentage of phase-in payment deemed earned and to be paid for performance during the period in which the termination becomes effective will be determined by the PCO in accordance with the approved criteria and will not be subject to negotiation as part of the equitable adjustment in accordance with the termination clause of the contract. For purposes of withhold determination, Contractor phase-in evaluation period will end as of the date of termination.

Termination for Default. If the Government terminates this contract for default (in accordance with FAR 52.249-8, Default (Fixed-Price Supply and Service), the Contractor shall only earn percentage of phase-in payment earned or earnable for the period in which the default occurred.

Consequently, no additional phase-in payment shall be paid during the termination settlement of the contract. Phase-in payments earned or earnable by the Contractor for phase-in evaluation periods completed prior to the effective date of the termination will not be affected by the termination. Default on a delivery order (DO) does not affect withholds on subsequent or prior DOs.

Incentives Available for Phase-In Evaluation Periods

The Contractor is subject to withholds for schedule performance which will be determined at the completion of the third evaluation period shown below. The percentages shown are the maximum payment available following that evaluation period. Weekly phase-in status meetings shall be held IAW PWS 5.1.4.

Contract Transition/Phase-In Incentive

Evaluation Period From To

1 01 Nov 24 30 Nov 24

2 01 Dec 24 31 Dec 24

3 01 Jan 25 31 Jan 25

Note: Evaluation Periods are defined as three one-month periods. The From and To dates listed above are subject to change.

**The payment available for Contract /Phase-In (CLIN 00XX) is 100% of the proposed phase-in price on CLIN 00XX with a total not to exceed amount of $xxxK and can be retained by meeting the criteria for each evaluation period identified above**

Evaluation Period 1 Criteria (25%): For the Contractor to receive this 25 percent payment, they must document efforts to meet criteria and timelines outlined in their phase-in plan (PWS 5.1.2) for the evaluation period. The PCO will make the final determination on the Contractor’s eligibility to receive on-time payment. Any disagreement on the final determination will be subject to the disputes clause.

Evaluation Period 2 Criteria (25%): For the Contractor to receive this 25 percent payment, they must document efforts to meet criteria and timelines outlined in their evaluated phase-in plan. The PCO will make the final determination on the Contractor’s eligibility to receive this incentive. Any disagreement on the final determination will be subject to the disputes clause.

Evaluation Period 3 criteria (50%): For the Contractor to receive final phase-in payment at the conclusion of three-month phase-in period, they must complete all phase-in requirements by 31 Jan 2025 (PWS 5.1.11). The PCO will make the final determination on the Contractor’s eligibility to receive full payment. Any disagreement on the final determination will be subject to the disputes clause.

HVA Repair TAT Withhold

Evaluation Period From To

Per Occurrence Negotiated HVA Delivery Date

Actual HVA Delivery Date

Note: Evaluation periods for HVA leases will be provided in days the leased asset is required to be installed on government aircraft until a government-owned asset is available and the lease asset is removed from the aircraft.

HVA TAT Evaluation Criteria: The repair of C-20 / C-37 landing gear and APU are covered in the HVA repair TAT evaluation. The purpose of this incentive is to minimize impact on aircraft availability by holding the number of days a HVA is unavailable for mission use due to negotiated contract repairs. For each day late to the delivery schedule, based on the negotiated repair TAT, there will be a 1% reduction to the payment for the negotiated repair. The repair TAT is defined as the date an asset is removed from the aircraft and provided to the Contractor Operated and Maintained Base Supply (COMBS) facility until the asset is returned from repair and received serviceable at the COMBS. The number of days an asset is off-wing for repair will be negotiated per occurrence between the Contractor and the Government, IAW PWS Paragraph

4.17 (Auxiliary Power Unit Maintenance) and 4.18 (Landing Gear Maintenance). For example, if the Government asset is received at the COMBS from repair three days later than the negotiated delivery date, then the contractor will receive payment with 3% deducted from the negotiated repair price. The contractor shall meet or exceed all the HVA repair/overhaul requirements IAW the negotiated work scope to receive full payment. The PCO will make the final determination on the contractor’s eligibility to receive full payment. Any disagreement on the final determination will be subject to the disputes clause.