BOS_Performance_Incentive_Plan_(6_Feb_14).pdf

H-Clause XX

BASE OPERATION SUPPORT (BOS) SERVICES

PERFORMANCE INCENTIVE PLAN (PIP)

1.0. INTRODUCTION

1.1. This plan describes the process that will be used to assess and determine the Performance Incentive (PI) earned by the Service Provider (SP). This incentive provision is in addition to any other governmental rights contained in FAR 52.246-4, Inspection of Services clause. The objective is to motivate the SP to effectively and consistently perform satisfactorily in all areas of the contract. This plan describes the procedures and specific evaluation criteria used to assess the SP’s performance and to determine incentive earned. This plan and the structure of the PI are directly tied to SP performance of Performance Work Statement (PWS) requirements. SP performance will be continuously monitored by the Contracting Officer Representative (COR) in accordance with the PWS. Performance Incentive will be calculated quarterly based on the results of COR inspections, monitoring and observations during the quarter where performance took place. The results will be used in conjunction with the yearly Contractor Performance Assessment Report System (CPARS) assessment to provide a complete program assessment of the SP’s performance on the BOS services.

2.0. GENERAL PROCEDURES

2.1. Evaluation Periods. Monthly evaluations will be partnered with the SP by each functional area.

The earned Performance Incentive will be calculated and invoiced on a quarterly basis. The Performance Incentive evaluation periods are as follows:

Period of Performance Q1 PI End Q2 PI End Q3 PI End Q4 PI End Base Period* 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep 15 Option Period 1 31 Dec 15 31 Mar 16 30 Jun 16 30 Sep 16 Option Period 2 31 Dec 16 31 Mar 17 30 Jun 17 30 Sep 17 Option Period 3 31 Dec 17 31 Mar 18 30 Jun 18 30 Sep 18 Option Period 4 31 Dec 18 31 Mar 19 30 Jun 19 30 Sep 19

*Actual quarterly dates contingent upon POP found in Schedule B.

2.2. Assessment and Payment Overview. The evaluation criteria and calculations as described in paragraph 3.0 for Performance Incentive Procedures will be utilized. Periodic feedback will be provided to the SP by the Contracting Officer Representative, Government Program Manager (GPM), or Contracting Officer (CO). The GPM is appointed by the Installation Commander. The final earned performance incentive determination is the unilateral decision of the Government. The CO will inform the SP in writing of the amount of performance incentive earned within 30 calendar days after the evaluation period. Upon receipt of this notice, the SP may invoice for the amount of earned performance incentive against applicable contract line item numbers (CLINs).

2.3. Procedures for Changing the Plan. Changes will be tied to modifications to the contract, identifiable interim outcomes, discrete events or milestones, the Quality Assurance Surveillance Plan (QASP), or objective measurable characteristics of processes as much as possible. Changes affecting the current evaluation period will be by bilateral agreement between the Government and SP.

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.

3.0. PERFORMANCE INCENTIVE (PI) PROCEDURES

3.1. PI: The total PI will be calculated by withholding 3% of the SP’s Total Evaluated Price (TEP) which is comprised of all Firm Fixed Price (FFP) Contract Line Item Numbers (CLINs). Sample Calculation as follows:

*Assume the following:

Total Evaluated Price (TEP) awarded: $300,000,000 Total Price of FFP CLINs for Base Year: $ 58,000,000 Total Base Year Performance Incentive ($58,000,000 x 3%): $ 1,740,000 Performance Incentive available per quarter ($1,740,000/4 Qtrs) $ 435,000**

* Amounts are notional **Withholds against payments for FFP CLINs would sum up to $435,000

3.2. Determination of PI Earned: The PI earned for each CLIN will be based on whether SP met the Service Delivery Summaries (SDSs) and Non-Service Delivery Summary item requirements for that CLIN.

All SDS and Non-SDS items will be evaluated on a pass/fail basis for purposes of earning PI.

3.2.1. Compliance: Normally the SDSs applicable to each CLIN shall be considered of equal weight, with the body of all non-SDS compliance for the CLIN weighted as one SDS. Functional Commanders, with GPM and ACO concurrence, may determine CLIN-specific weighted percentages before the beginning of the evaluation period for each SDS and for non-SDS item compliance for purposes of earning PI for that

CLIN.

3.2.2 Calculation of Contract Compliance Percentage: The contract compliance percentage is calculated by summing the number of SDSs and non-SDS items deemed compliant and dividing by the total number of SDSs and non-SDS items, rounded to two digits. For example, if there are 15 SDS items and 1 non SDS items, you would divide the number of items that passed inspection by 16. So if 14 items passed and that is divided by 16, then 88% of the withhold for that CLIN would have been earned.

3.2.3. Calculation of PI Earned: Earned PI for each CLIN will be determined by multiplying the contract compliance percentage for each CLIN against the available PI for that CLIN.

3.3. SDSs: SDSs are made up of:

Customer Satisfaction (CS). The SP will provide a customer satisfaction measurement system that meets the criteria of this plan when a feedback SDS is required by the PWS. One primary method of measuring customer satisfaction will be Point of Service (POS) feedbacks (hard copy or electronic). The POS feedbacks will be collected by the CORs to calculate and report the results to the Performance Management Office (PMO) throughout each month. In situations where the SP feels that a customer complaint is unfair, they have the right to go to the GPM and ask for an invalidation. If the GPM decides in favor of the SP, the customer complaint will be rendered invalid. **NOTE: Data for computing POS customer satisfaction will not include BOS SP or their subcontractor personnel feedback.

Performance Metrics. Evaluations considered to have Passed are tied to successful achievement of performance standards described in each performance metric. Each individual performance metric will be worth a fractional portion of the weighted percentage for that functional area.

Compliance Metrics. The purpose of these metrics is to determine the SP’s success at complying with directive publications listed in Appendix “A” of the PWS, as well as other requirements of the PWS or of the contract terms and provisions. These are monthly metrics that are calculated based on pass rates of compliance inspections performed by the CORs throughout each month.

3.4. Non-SDSs: Non-SDS items are requirements of the contract that are not otherwise broken out in an SDS for a particular functional area. Any paragraph in the PWS that declares an action to be taken or a standard to be met by the service provider, but is not described by one of the SDS, is deemed a non- SDS requirement.

3.5. Re-performance of Work: If the SP fails a specific SDS or Non-SDS requirement and re-performance IAW the contract is practicable and completed by the end of the quarterly Performance Incentive evaluation period (“evaluation period”), the SP may be given the weighted percentage for that requirement. If re-performance IAW the contract is completed after the end of the evaluation period, and the government determines that it still received the full benefit of the service as reperformed, then the SP may be given the weighted percentage for that requirement as well. If reperformance IAW the contract cannot be accomplished, or if the reperformance does not benefit the government because it is untimely, then the service provider shall not be deemed to have earned the PI for that requirement.

4.0. PERFORMANCE INCENTIVE PLAN RESULTS. The final determination is the unilateral decision of the Government and will be communicated to the SP by the CO within 30 calendar days after the end of the evaluation period.

5.0. PI AND OTHER WITHHOLD EVENTS. Should a specific matter of contract noncompliance be of such impact and magnitude that the normal withhold for the PI pool is not sufficient to protect the government’s interest, a withhold specific to and appropriate for that specific matter will be quantified and communicated to the SP by the CO. Resolution of any withhold for a specific matter will not be subject to the processes herein for PI, but will be subject to process and timelines established by Corrective Action Requests issued by, and SP Corrective Action Plans approved by the CO.