1_AttachmentJ-2.doc

Attachment J-2

Award Fee Plan For the 9th Quality Improvement Organization (QIO)

Statement of Work (SOW)

GENERAL DESCRIPTION OF THE AWARD FEE PLAN

This contract is a cost plus fixed fee (CPFF) and cost-plus-award-fee (CPAF) combination. The fees available under this contract are as follows:

· Fixed Fee for Information Systems (IS) and Special Projects

· Cost-plus-fixed base fee and award fee for all other contract requirements Any QIOs that are exempt from performing the requirements of a given Theme or Theme subcomponent will not receive a fee for that Theme or Theme subcomponent. The earned amount is awarded based on the Government’s assessment of the contractor’s performance per the evaluation criteria contained in Section C of the contract on or about November 2010. The Government will make one payment of award fees after the assessment is complete. Upon determination by the Fee Determination Official (FDO), the Contracting Officer shall issue a letter to the QIO indicating the amount of award fee for which the QIO shall submit a voucher for payment.

FEE DETERMINATION OFFICIAL (FDO)

The award fee earned shall be the decision of the FDO, the Director Division of Contract Operations and Support (or successor organization), based upon input from the Contracting Officer, Project Officer, and Government Task Leaders as necessary. The FDO shall make a determination of award fee when all technical and cost data become available.

AWARD FEE METHODOLOGY

Fixed Base Fee

50% of the negotiated fees for each Theme or Theme subcomponent listed in the Section B Table of Total Estimated Cost (TEC) and Associated Fees will be designated Base Fee (excluding pass-through).

Award Fee

50% of the negotiated fees for each Theme or Theme subcomponent listed in the Section B Table of TEC and Associated Fees will be designated Award Fee (excluding pass-through). QIOs are eligible to receive the award fee if the QIO passes the 28-month evaluation criteria for that Theme or Theme subcomponent. Criteria for QIOs to pass the 28-month evaluation are found in the contract evaluation sections of the Statement of Work.

Fixed Fee A negotiated fixed fee will be paid on contract costs related to Information Systems (IS) and Special Projects.

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