AFPSL Recompete Incentive Plan.docx

Air Force Primary Standards Laboratory Contract Incentive Fee Plan

1.0 INTRODUCTION.

1.1 This Plan describes the process that will be used to assess and determine the incentives earned by the Contractor. The objective is to motivate the Contractor to effectively manage performance in the rated areas stated in the contract that directly impact performance of requirements described in the PWS and applicable to incentive plan categories and criteria. It consists of two performance elements; turn around time and accuracy. Each element will be evaluated and calculated separately on a quarterly basis.

2.0 GENERAL PROCEDURES.

2.1 Evaluation Periods. Evaluations will occur on a quarterly basis. The base 3 months of the contract will not include an evaluation period as the incentive CLINs will not have any performance to measure during the initial 3 months of transition. The initial evaluation period will be 01 Dec 2020 – 30 Nov 2021, and will continue every three subsequent months through the remainder of the contract.

2.2 Assessment and Payment Overview. The evaluation criteria will be based upon the Service Delivery Summary (SDS) criteria for turn around time (SDS 4.0) and accuracy (SDS 1.0) as applied to the appropriate incentivized CLINs. Incentives will be invoiced and payed once per quarter for the earned incentives at the CLIN level.

2.3 Procedures for Changing the Plan. Unilateral changes may be made to the Plan by the Government if the Contractor is provided a modification no later than 15 calendar days before the start of the upcoming calendar year. Changes affecting the current evaluation period will be by bilateral agreement between Government and Contractor.

2.4 Contract Termination. If the contract is terminated for the convenience of the Government after the start of an evaluation period, the Government will use the normal evaluation process for the shortened period. After termination for convenience, the remaining incentive cannot be earned by the Contractor and, therefore, will not be paid.

2.5 Incentive Fee Pool Calculations. For purposes of calculating the available incentive fee pool, the annual fixed price cost for each CLIN will be calculated at 90% of the total annual fixed price of the CLIN.

3.0 CALIBRATION SERVICES CLIN.

3.1 Calibration Services Pool: The total calibration services CLIN pool is determined by the Government and will be a percentage of the cost of CLIN issued. The calibration services pool will not exceed 8% of the annual fixed price cost of the calibration services CLIN. Failure to meet minimum SDS standards will result in a negative incentive not to exceed 2% of the annual fixed price cost of the calibration services CLIN. The Pool available each quarter will be ¼ of the total annual pool for the CLIN and the annual pool will be divided as follows; up to 3% or -0.75% will be based on turn around time, up to 3% or -0.75% will be based on accuracy, and up to 2% or -0.5% will be based on acceptance testing turn around time.

3.1.1 Turn Around Time: The turn around time incentive will be based on the percentage of items processed under the calibration services CLIN (excluding acceptance testing) that meet the minimum turn around time as stated in the Performance Work Statement.

3.1.1.1 Criteria: The following criteria will be used to meet each level of incentive.

3.1.1.1.1 The full 0.75% will be earned if the contractor achieves less than or equal to 1% defect rate on the standard turn around time for all calibration services work load excluding acceptance testing, and has no more than 3 items in the quarter that go beyond the additional 15 days past the allowable turn around time.

3.1.1.1.2 0.375% will be earned if the contract achieves a defect rate higher than 1% but less than or equal to 2% on the standard turn around time for all calibration services work load excluding acceptance testing, and has no more than 3 items in the quarter that go beyond the additional 15 days past the allowable turn around time.

3.1.1.1.3 No incentive will be earned if the contract achieves a defect rate higher than 2% but less than or equal to 3% on the standard turn around time for all calibration services work load excluding acceptance testing, and has no more than 3 items in the quarter that go beyond the additional 15 days past the allowable turn around time.

3.1.1.1.4 0.1875% negative incentive for the quarter will be incurred if the contract reaches a defect rate higher than 3% on the standard turn around time for all calibration services work load excluding acceptance testing, or has more than 3 items in the quarter that go beyond the additional 15 days past the allowable turn around time.

3.1.2 Accuracy: The accuracy incentive will be based upon meeting the monthly SDS 1.01.

3.1.2.1 Criteria: The following criteria will be used to meet each level of incentive.

3.1.2.1.1 The full 0.75% will be earned if the contractor meets SDS 1.01 all three months in the current evaluation period.

3.1.2.1.2 0.375% will be earned if the contractor meets SDS 1.01 two out of the three months in the current evaluation period.

3.1.2.1.3 No incentive will be earned if the contractor meets SDS 1.01 only one out of the three months in the current evaluation period.

3.1.2.1.1 0.1875% negative incentive will be incurred if the contractor fails to meet SDS 1.01 all three months in the current evaluation period.

3.1.3 Acceptance Testing Turn Around Time: The acceptance testing turn around time incentive will be based upon meeting the monthly SDS 4.04.

3.1.3.1 Criteria: The following criteria will be used to meet each level of incentive.

3.1.3.1.1 The full 0.5% will be earned if the contractor meets SDS 4.04 all three months in the current evaluation period.

3.1.3.1.2 0.25% will be earned if the contractor meets SDS 4.04 two out of the three months in the current evaluation period.

3.1.3.1.3 No incentive will be earned if the contractor meets SDS 4.04 only one out of the three months in the current evaluation period.

3.1.3.1.1 0..125% negative incentive will be incurred if the contractor fails to meet SDS 4.04 all three months in the current evaluation period.

3.1.4 Quarterly Fee Matrix for Calibration Services: Table 1 below shows the matrix of available incentive fees for the calibration services CLIN for each mix of performance results.

Table 1 – Calibration Services CLIN Incentive Fee Matrix

4.0 CALIBRATION SERVICES – RADIAC CLIN.

4.1 Calibration Services – Radiac Pool: The total calibration services radiac CLIN pool is determined by the Government and will be a percentage of the cost of CLIN issued. The calibration services pool will not exceed 8% of the annual fixed price cost of the calibration services CLIN. Failure to meet minimum SDS standards will result in a negative incentive not to exceed 2% of the annual fixed price cost of the calibration services CLIN. The Pool available each quarter will be ¼ of the total annual pool for the CLIN and the annual pool will be divided as follows; up to 4% or -1% will be based on turn around time, and up to 4% or -1% will be based on accuracy.

4.1.1 Turn Around Time: The turn around time incentive will be based on the percentage of items processed under the calibration services – radiac CLIN that meet the minimum turn around time as stated in the Performance Work Statement.

4.1.1.1 Criteria: The following criteria will be used to meet each level of incentive.

4.1.1.1.1 The full 1% will be earned for the quarter if the contractor meets SDS 4.02 all three months in the current evaluation period.

4.1.1.1.2 0.5% will be earned if the contractor meets SDS 4.02 two out of the three months in the current evaluation period.

4.1.1.1.3 No incentive will be earned if the contractor meets SDS 4.02 only one out of the three months in the current evaluation period.

4.1.1.1.1 0.25% negative incentive will be incurred if the contractor fails to meet SDS 4.02 all three months in the current evaluation period.

4.1.2 Accuracy: The accuracy incentive will be based upon meeting the monthly SDS 1.03.

4.1.2.1 Criteria: The following criteria will be used to meet each level of incentive.

4.1.2.1.1 The full 1% will be earned for the quarter if the contractor meets SDS 1.03 all three months in the current evaluation period.

4.1.2.1.2 0.5% will be earned if the contractor meets SDS 1.03 two out of the three months in the current evaluation period.

4.1.2.1.3 No incentive will be earned if the contractor meets SDS 1.03 only one out of the three months in the current evaluation period.

4.1.2.1.1 0.25% negative incentive will be incurred if the contractor fails to meet SDS 1.03 all three months in the current evaluation period.

4.1.3 Quarterly Fee Matrix for Calibration Services – RADIAC CLIN: Table 2 below shows the matrix of available incentive fees for the calibration services – RADIAC CLIN for each mix of performance results.

Table 2 - Calibration Services RADIAC CLIN Incentive Fee Matrix

5.0 TECHNICAL ORDER SERVICES CLIN.

5.1 Technical Order Services Pool: The total technical order services CLIN pool is determined by the Government and will be a percentage of the cost of CLIN issued. The technical order services pool will not exceed 8% of the annual fixed price cost of the technical order services CLIN. Failure to meet minimum SDS standards will result in a negative incentive not to exceed 2% of the annual fixed price cost of the calibration services CLIN. The Pool available each quarter will be ¼ of the total annual pool for the CLIN and the annual pool will be divided as follows; up to 2% or -0.5% will be based on turn around time and up to 6% or -1.5% will be based on accuracy.

5.1.1 Turn Around Time: The turn around time incentive will be based on the percentage of items processed under the calibration services CLIN that meet the minimum turn around time as stated in the Performance Work Statement.

5.1.1.1 Criteria: The following criteria will be used to meet each level of incentive.

5.1.1.1.1 The full 0.5% will be earned if the contractor meets SDS 4.03 all three months in the current evaluation period.

5.1.1.1.2 0.25% will be earned if the contractor meets SDS 4.03 two out of the three months in the current evaluation period.

5.1.1.1.3 No incentive will be earned if the contractor meets SDS 4.03 only one out of the three months in the current evaluation period.

5.1.1.1.1 0.125% negative incentive will be incurred if the contractor fails to meet SDS 4.03 all three months in the current evaluation period.

5.1.2 Accuracy: The accuracy incentive will be based upon meeting the monthly SDS 1.02.

5.1.2.1 Criteria: The following criteria will be used to meet each level of incentive.

5.1.2.1.1 The full 1.5% will be earned if the contractor meets SDS 1.02 all three months in the current evaluation period.

5.1.2.1.2 0.75% will be earned if the contractor meets SDS 1.02 two out of the three months in the current evaluation period.

5.1.2.1.3 No incentive will be earned if the contractor meets SDS 1.02 only one out of the three months in the current evaluation period.

5.1.2.1.1 0.375% negative incentive will be incurred if the contractor fails to meet SDS 1.02 all three months in the current evaluation period.

5.1.3 Quarterly Fee Matrix for Technical Order Services CLIN: Table 3 below shows the matrix of available incentive fees for the technical order services CLIN for each mix of performance results.

Table 3 – Technical Order Services CLIN Incentive Fee Matrix

6.0 INCENTIVE PLAN RESULTS. The PM will present the proposed incentive results each period to the AFMETCAL Director to ensure consistency and integrity in application of the Incentive Plan. The AFMETCAL Director will validate the PM’s inputs, recommendations, and calculations. Incentive results each period are not closed until final coordination with the AFMETCAL Director. The final determination is the unilateral decision of the Government and will be communicated to the contractor by the CO within 60 days after the end of the evaluation period.

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