Appendix I C-20 C-37 Performance Incentive Document (PID).pdf

APPENDIX I

PERFORMANCE INCENTIVE DOCUMENT (PID)

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

28 November 2023

Appendix I: C-20 / C-37 PID

Table of Contents

Section Title Page

1 Introduction 3

2 Responsibilities 3

3 Incentive Processes 3

Performance Incentive Document Change Procedure

5 Contract Termination 3

6 Annex 1 - Phase-In Incentive Process 5

7 Annex 2 - HVA Repair On-Time Delivery Incentive Process

PERFORMANCE INCENTIVE DOCUMENT (PID)

1. INTRODUCTION

This PID is the basis for the C-20 / C-37 CLS contract phase-in 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 delivery date targets. The Contractor is incentivized to meet the transition phase-in schedule requirements to earn early payments for the transition phase-in period as shown in Annex 1. The Contractor is further incentivized to meet negotiated HVA repair delivery date targets to avoid being penalized through withholds from payments for each HVA repair. The asset category HVA includes C-20 engines, C-20 / C-37 aircraft landing gear, and C-20 / C-37 auxiliary power units (APU). The methodology for assessing withholds is a determination made solely at the discretion of the government; however, the determination is subject to the FAR 52.233-1, Disputes clause of the contract.

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. 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, including phase-in and delivery order tracking and provide data to the PCO for reconciliation. PMs prepare evaluation reports and assessments as directed by the

PCO.

3. INCENTIVE WITHHOLD PROCESSES

Withhold processes for phase-in are described in Annex 1 and HVA repair delivery date withhold processes are described in Annex 2. Withhold determination will be based on the

Contractor’s performance of each applicable scenario.

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. All changes must be by mutual agreement of both parties. The PCO will incorporate official changes to this PID via bilateral modification.

5. CONTRACT TERMINATION

If the contract is terminated for the convenience of the Government in accordance with (IAW)

Federal Acquisition Regulation (FAR) 52.249-2, Termination for Convenience of the

Government (Fixed-Price) or for Default IAW FAR 52.249-8, Default (Fixed-Price Supply and Service), the amount of withhold the Contractor is subject to shall be determined as follows:

(1) Payments earned by the Contractor for phase-in or HVA repairs completed prior to the effective date of the termination will not be affected by the termination.

(2) If termination occurs during any phase-in period, the Government will determine what percentage of phase-in tasks are complete as of the date of termination and make payment accordingly based on the pre-established payment terms.

(3) If termination occurs after the third month of Phase-In and the final phase-in payment has been withheld, a percentage of the withheld payment will be paid to the Contractor in accordance with the Government’s determination of phase-in completeness.

Annex 1 - Phase-In Incentive Process

The Contractor is subject to withhold of the final phase-in payment for schedule delays which will be determined at the completion of the third phase-in period shown below. The Government will consider schedule relief for factors beyond the Contractor’s control. Weekly phase-in status meetings shall be held IAW PWS 5.1.4.

Contract Transition/Phase-In Payment

Phase-In Period From To Payment Terms

1 01 Nov 24 30 Nov 24 15% of proposed phase-in price

2 01 Dec 24 31 Dec 24 25% of proposed phase-in price

3 01 Jan 25 31 Jan 25 Remainder of proposed phase-in price, subject to evaluation paragraph below

Note: Phase-In 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 (CLINs 0002 - 0010) is 100% of the proposed phase-in price for CLINs 0002 - 0010. **

Phase-In Period 1 Evaluation: If the contractor delivers the following requirements by the end of the Phase-In Period 1, the contractor will receive the 15% incentive payment:

- Signed significant Subcontractor Agreements (PWS 5.1.11 and PWS Attachment 2),

- Finalized Phase-In Plan with finalized organization charts (PWS 5.1.11).

If Period 1 criteria is not met, the 15% incentive payment will be withheld until Period 3 increasing the maximum final Phase-in payment to 75% of proposed phase-in price. Period 1 criteria would be included in Period 3 evaluation criteria and subject to reduced payments IAW

Phase-In Period 3 Final Payment Evaluation table.

Phase-In Period 2 Evaluation: If the contractor delivers the following requirements by the end of the Phase-In Period 2, the contractor will receive the 25% incentive payment:

- Establish Vendor Subscriptions Services (PWS 5.1.7),

- Establish Publication Accounts (PWS 5.1.8),

- Provide Listing of Historical Files and Data Receipt (PWS 5.1.9),

- Demonstrate Aircraft Status Reporting Capability (PWS 5.1.11, PWS 2.12),

- Verification of Export Licenses (PWS 5.1.11).

If Period 2 criteria are not met, the 25% incentive payment will be withheld until Period 3 increasing the maximum final Phase-In payment to 85% of proposed phase-in price. Period 2 criteria would be included in Period 3 evaluation criteria and subject to reduced payments IAW

Phase-In Period 3 Final Payment Evaluation table.

If both Periods 1 and 2 are unmet, the maximum final Phase-in payment will be 100% of proposed phase-in price. Period 1 and 2 criteria would be included in Period 3 evaluation criteria and subject to reduced IAW Phase-In Period 3 Final Payment Evaluation table.

Phase-In Period 3 Evaluation: For the Contractor to receive a final phase-in payment (to include any incentive payments withheld from Phase-In Period 1 and Phase-In Period 2) following the conclusion of the three-month phase-in period, all phase-in requirements must be completed by the end of the phase-in period (PWS 5.1.11). The PCO will determine when all phase-in requirements are complete. The PCO will reduce the final phase-in payment if all phase-in requirements are not complete at the end of the Phase-In period as shown in the

Contract Transition/Phase-In Withhold table. The PCO will use the Phase-In Period 3 Final

Payment Evaluation table to determine any reduction. Any disagreement on the PCO’s final determination will be subject to the disputes clause.

Phase-In Period 3 Final Payment Evaluation *

Requirements 10 Calendar Days Late Reduced to 90% of maximum final payment

Requirements 20 Calendar Days Late Reduced to 75% of maximum final payment

Requirements 30 Calendar Days Late Reduced to 60% of maximum final payment

Requirements 40 Calendar Days Late Reduced to 0%

*Note – Reductions begin after 10 calendar days late. Federal holidays are excluded from the calculation of calendar days late.

Annex 2 - HVA Repair On-Time Delivery Incentive Process

Delivery dates for HVA Repairs will be negotiated at the time each repair is contracted. The negotiated repair delivery date is defined as the agreed upon date between the CLS Provider and the Government for the return to service of the HVA. The Government will consider schedule relief for factors beyond the Contractor’s control. The Contractor shall submit schedule extension requests to the PCO for approval. The repair of C-20 engines, C-20 / C-37 landing gear, and C-20 / C-37 APU are covered in the HVA repair on-time delivery evaluation. The purpose of this incentive is to minimize impact on aircraft availability by holding the contractor to negotiated schedules for HVA repairs.

HVA On-Time Delivery Evaluation Criteria: For each calendar day late (excluding federal holidays) to the HVA repair delivery schedule, based on the negotiated repair delivery date, there will be a one percent reduction to the payment for the established Firm Fixed Price plus any over and above cost negotiated to complete the repair. The schedule for repair will be negotiated per occurrence between the Contractor and the Government, IAW PWS paragraphs 4.16 (Engine

Maintenance), 4.17 (Auxiliary Power Unit Maintenance), and 4.18 (Landing Gear Maintenance).

For example, if the Government asset is delivered three calendar days later (excluding federal holidays) than the negotiated delivery date, then the contractor will receive payment with three percent 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.

HVA Repair On-Time Delivery Withhold

Evaluation Period From To

Per Occurrence Negotiated HVA Delivery

Date

Actual HVA Delivery Date