OACTSAmendmenttoSolicitationtoAddPBSCProvisionsforOA_Loring.doc

OA/CTS Contracts

Amendment to Solicitation to Add PBSC Provisions for OA

Solicitation No. DOLJ08RFP0001, is modified to include Performance Based Contracting Provisions for outreach/admissions services. Modifications to the RFP are as follows:

1. SECTION G. CONTRACT ADMINISTRATION DATA

G.1 FUNDING AND FINANCIAL ADMINISTRATION, C.3, Incentive Fee is revised to read:

Under the terms of this cost plus incentive contract, the contractor shall be paid a base fixed fee, and shall have the opportunity to earn an incentive fee and a performance excellence bonus based on achievement of goals for both outreach/admissions and career transition services. For purposes of this contract, the contractor’s performance and the amount of incentive fee earned shall be determined annually at the close of the contract year, based on achievement of goals within Job Corps’ Outcome Measurement System.

Annually, the Director of Job Corps will establish a performance range for the upcoming Program Year. The performance range will identify maximum and minimum incentive fee payment points as follows:

Maximum:

level at which the contractor receives the maximum available incentive fee payment.

Minimum:

level below which the contractor receives no incentive fee payment

Incremental incentive fee payment points will be established for each level of OMS performance (to one decimal point) within the established performance range.

In order to motivate and reward excellence in performance, those contractors whose performance exceeds the top of the National Performance Range will be eligible to earn a Performance Excellence Bonus. The bonus will be awarded for performance up to 10 OMS points above the top of the National Performance Range.

Performance ranges may fluctuate from year to year based on performance history for the preceding year. The contractor’s performance will be evaluated based on the portion of the contract year that occurred during the Program Year for which the performance range was in effect.

Under the terms of this contract, fixed and incentive fees for OA and CTS shall be as follows:

Outreach/Admissions

(Invoicing Level)

$0

$0

$0

$0

$0

Career Transition Services

(Invoicing Level)

$0

$0

$0

$0

$0

2. Attachment J-1, Cost Price Analysis Summary is revised to indicate that total Fixed and Incentive Fees should include total amounts for OA and CTS components combined. (Revised J-1 attached.).

3. Attachment J-4, Form 2110, is revised to include a line item for Contractor Incentive Fee under Outreach/Admissions. (Revised J-4 attached.)

4. Attachment J-12, PERFORMANCE BASED SERVICE CONTRACTING PLAN, OFFICE OF JOB CORPS, is revised to include incentive fee provisions for OA components. (Revised J-12 attached)

5. Section L, Instructions to Offerors, L.7, Submission of Proposals, B.4. Cost Justification, 4. (b) Narrative Cost Detail is revised as follows:

(b) A narrative justification for each line item of the 2110 OA/CTS for each of the two base years. Include all explanatory narratives and calculations showing how costs are determined.

Provide narrative justification for each line item showing how the labor, material, travel, subcontractors, and other costs outlined on the 2110 OA/CTS were determined. Cost justifications based solely on historical data will be considered insufficient to support cost proposals.

Include the backup data to support the type of labor and estimated numbers of staff within each labor category.

Under those 2110 line items relating to staff costs, show your computations in the following vertical columns: (1) position title; (2) number of positions in terms of full-time equivalents (FTEs); (3) range of annual salaries/wages for the position title; (4) average direct annual salary/wages on a per FTE basis (5) average benefits and other indirect employee compensation costs on a per FTE basis; (6) total employee compensation cost to the contract for each position title, which should equal col 2 x col 4 + col 2 x col 5.

For Outreach/Admissions and Career Transition Services, the contractor shall propose a fee consisting of a base fixed fee and an incentive fee. For each component (OA and CTS), the base fixed fee shall not exceed 4.32% of estimated total direct and indirect costs. The incentive fee shall be proposed at a level equal to 1.44% of estimated total direct and indirect costs (the level that will be used for invoicing purposes.) It is understood that the incentive fee range shall be from $0 to 2.88% of total direct and indirect costs. In addition, the contractor will have the opportunity to earn a Performance Excellence Bonus in accordance with Job Corps’ Incentive Fee plan. However, the Performance Excellence Bonus should not be included in the offeror’s cost proposal, but will be identified in the resultant contract. At the end of the contract year, the contractor’s performance shall be evaluated and incentive fee paid in accordance with Section G.

Include a breakdown of the amount estimated for travel, including destination, duration, purpose and cost (per diem and transportation).

Include backup data to support the estimated amount of material and subcontracting (if applicable), including description of materials to be procured, basis for proposed subcontract, and amounts proposed.

Subcontract information shall contain the list of names and addresses of any proposed subcontractors or consultants the offeror intends to use in the performance of the contract. Include the following information about subcontractors in excess of $25,000:

· Has the subcontractor submitted a cost proposal?

· Will the subcontractor be able to start performance at the beginning of the contract period?

· What is the total cost of each subcontract?

· What experience does the subcontractor have in this technical area?

· What services (skills) shall the subcontractor provide?

Revised ATTACHMENT J-1 (Page 1 of 4)

COST AND PRICE ANALYSIS SUMMARY

Cost Category

*Total of Fixed Fees for OA and CTS, if applicable

**Total of Incentive Fees for OA and CTS, if applicable

Revised ATTACHMENT J-1 (Page 2 of 4)

FRINGE BENEFITS

1st Year Pay Base

(a) 2nd Year Pay Base

(b) Fringe

1st Year

(%*a) Fringe 2nd Year

(%*b)

ADDITIONAL INFORMATION

Revised ATTACHMENT J-1 (Page 3 of 4)

COST AND PRICE ANALYSIS SUMMARY

Cost Category

*Total of Fixed Fees for OA and CTS, if applicable

**Total of Fixed Fees for OA and CTS, if applicable

Revised ATTACHMENT J-1 (Page 4 of 4)

OY1 Pay Base

Fringe OY 1

Fringe OY 2

Fringe OY 3

ADDITIONAL INFORMATION

Revised ATTACHMENT J-4

Financial Display by Year (2110 OA/CTS format)

1st YEAR

OUTREACH/ADMISSIONS

O/A Personnel Expense

Staff Travel/Training Expense

GSA Vehicle Rental Expense

Facilities Expense

Equipment Expense

Media/Advertising Expense

Indirect Administrative Expense

Contractor Fee

09 Contractor Incentive Fee

Other Expense

TOTAL O/A EXPENSE (Lines 01-10)

CAREER TRANSITION SERVICES

CTS Personnel Expense

Staff Travel/Training Expense

GSA Rental Expense

Facilities Expense

Equipment Expense

Media/Advertising Expense

Indirect Administrative Expense

Contractor Fixed Fee

Contractor Incentive Fee

Other Expense

TOTAL CTS EXPENSE

TOTAL OA/CTS EXPENSE

Revised Attachment J-12

PERFORMANCE BASED SERVICE CONTRACTING PLAN

OFFICE OF JOB CORPS

INTRODUCTION

Performance Based Service Contracting (PBSC) is an approach to procuring services using contract requirements described in objective terms with measurable outcomes, and relating the contractor’s total payment directly to how well the contractor has met those requirements. PBSC is an outgrowth of the Government Performance Results Act, and, as such, focuses on specifying desired outcomes rather than on prescribing how the work is to be performed.

1. Contractor’s Fee:

For Outreach/Admissions and Career Transition Services, the contractor’s fee will be a combination of fixed and incentive fees. The contractor will be paid a base fixed fee, (lower than the customary fixed fee for the type of work). The remaining fee amounts will be used to establish a National incentive fee pool. The contractor will have the opportunity to earn additional fee (up to and above the customary level) based on achievement of Outcome Measurement System (OMS) goals within a performance range established by the government. Incentive fee will be paid from the National incentive pool.

In addition, the contractor will have an opportunity to earn a performance bonus for excellent performance as defined by the Director of Job Corps.

2. Establishing the Performance Range:

The performance range for each upcoming year will be established annually by the Director of Job Corps and will be based on the performance of all contracts on the Outcome Measurement System (OMS) Report Card for the preceding Program Year. The performance range will identify maximum and minimum payment points as follows:

Maximum:

level at which the contractor receives the maximum available incentive fee payment.

Minimum:

level below which the contractor receives no incentive fee payment

Incremental incentive fee payment points will be established for each level of OMS performance (to one decimal point) within the established performance range, i.e. incentive fee amounts will be established incrementally for 90.0%, 90.1%, 90.2%, etc.

To ensure that eventual costs to the government do not exceed budget availability, the performance range will be set so that there is a balanced distribution between higher and lower performers. Under this system, a contractor performing at an average level would receive a total fee (base + incentive fee) equating to the approximate current average contractor fee.

In order to motivate and reward excellence in performance, those contracts whose performance exceeds the top of the National Performance Range will be eligible to earn a Performance Excellence Bonus. The bonus will be awarded for performance up to 10 OMS points above the top of the National Performance Range.

Performance ranges may fluctuate from year to year based on performance history for the preceding year. Each contractor’s performance will be evaluated based on the portion of the contract year that occurred during the Program Year for which the performance range was in effect.

3. Establishing Fee Levels:

Base Fixed Fee: As described in the RFP, each offeror will propose a base fixed fee for the OA and CTS components for the contract that shall not exceed 4.32% of estimated total direct + indirect costs. This equates to 75% of the current average fixed fee (5.76%) for all stand alone OA/CTS contracts. Fee will be expressed in the resultant contract as a dollar amount rather than as a percentage.

Incentive Fee: Incentive fee payments will be earned by the contractor based on the level of achievement within the established National performance range. A range of incentive fee payments will available with the maximum being 2.88% of estimated total direct + indirect costs (or 2/3 the base fixed fee), and the minimum being $0. Incentive fee amounts will be distributed in equal increments throughout the performance range. Incentive Fee will be expressed in the resultant contract as a dollar amount rather than as a percentage.

Performance Excellence Bonus: The amount of the Performance Excellence Bonus pool for the contract will be equal to 10% of the maximum total fee (base fixed fee + maximum incentive fee). The bonus pool will be distributed in equal incremental amounts throughout the bonus range.

4. Performance Evaluation Periods:

An Incentive Fee evaluation and fee payout reconciliation will be made annually for each contract at the end of the contract year.

5. Billing and Payment of Fees:

Base fixed fee will be billed in equal monthly or semi-monthly increments throughout the contract year.

Incentive fee will be billed in equal monthly or semi-monthly increments at the amount equal to 1.44%, the level that would be earned for performance at the midpoint of the established performance range

Upon completion of the contract year, the Contracting Officer will evaluate the contractor’s overall performance for each component (OA and CTS), determine the level of incentive fee actually earned by the contractor, and issue a bilateral contract modification to adjust (add or reduce) incentive fee to the level earned.

Performance Excellence Bonuses will be awarded at the end of the contract year, along with other incentive fees earned by the contractor.

6. Example:

The following example demonstrates the application of the Incentive Fee Plan to a new OA/CTS award based on various OMS overall ratings. In the example, the period of performance for the contract year crosses the Program Year, and is, therefore, covered by 2 different performance ranges. For purposes of the example:

· Incremental payment points within a performance range are shown with no decimal places. In practice, payment increments will be established for OMS ratings to one decimal place.

· Sample performance ranges are shown. The actual performance ranges will be established for each PY based on the performance of all OA and CTS contracts for the previous year.

Attachment J-12

NEW CTS AWARD

Performance Ranges

(Contract year crosses PY Performance Ranges)

PY 02

PY 03

Incentive Fee Payouts At Various Performance Levels (Prorated By PY)

(e+i) Total Fee

(a+J)