Atch_3_-_Incentive_Option-Period_(IOP)_Plan.docx

INCENTIVE OPTION-PERIOD PLAN

1.0 INTRODUCTION

1.1. The last two option periods (Option 5 and Option 6) are Incentive Option-Periods (IOPs). This plan describes the process that will be applied by the Administrative Contracting Officer (ACO) to determine whether the Service Provider (SP) earns these IOPs.

1.2. The objective is to motivate consistent—“Satisfactory” or better— performance in all Contractor Performance Assessment Reporting System (CPARS) rated areas from the outset. For this reason, IOPs are tied directly to initial performance quality during the base period, as well as continued performance beyond the base period.

2.0 PARAMETERS

2.1. IOPs can only be earned through “Satisfactory” or better CPARS ratings. Any CPARS rating in any area (i.e. Quality, Schedule, Cost Control, Management, Small Business Utilization, and Regulatory Compliance) below “Satisfactory” will result in the elimination of at least one IOP.

2.2. All earned IOPs will be executed in accordance with FAR 52.217-9, Option to Extend the Term of the Contract, as the unilateral right of the Government. Earned IOPs are not guaranteed entitlements to additional years of performance. These options are contingent upon a continuing need, availability of funds, and performance.

2.3. CPARS ratings require 120 days to finalize. Upon CPARS finalization at the Determination Points (DPs) described in Section 3.0 below, the ACO will make the unilateral and final determination on whether the SP earned or did not earn an IOP. ACO determinations will be based exclusively on final CPARS ratings.

3.0 IMPLEMENTATION

3.1. This section provides the process for earning IOPs. There are three possible DPs, and each are described below. Each DP makes reference to a “1st IOP” and/or a “2nd IOP”. The 1st IOP refers to the 5th Option Period, and the 2nd IOP refers to the 6th Option Period, as depicted in the figure below.

Sep Aug Aug Aug Aug Aug Aug Aug

Determination Point #1 SP can either earn the 1st or lose the 2nd IOP

Determination Point #2 SP can earn the 1st IOP if the 2nd IOP was not earned at DP #1

Determination Point #3 SP can earn the 2nd IOP if the 1st IOP was earned at DP #1

3.2. Determination Point #1:

3.2.1. Earn. The SP has achieved an annual CPARS rating of “Satisfactory” or better in all areas during the base period (to include mobilization). The SP earns the first IOP, and has the opportunity to earn the 2nd IOP.

3.2.2. Not Earn. The SP did not achieve an annual CPARS rating of “Satisfactory” or better in all areas during the base period (to include mobilization). The SP loses any opportunity for the 2nd IOP; however, the SP maintains the opportunity at DP #2 to earn the 1st IOP.

3.3. Determination Point #2: This DP is implemented only if the 1st IOP was not earned at DP #1. If the 1st IOP was earned, skip to DP #3.

3.3.1. Earn. The SP achieved annual CPARS ratings of “Satisfactory” or better in all areas for option periods one and two. The SP earns the 1st IOP.

3.3.2. Not Earn. The SP did not achieve annual CPARS ratings of “Satisfactory” or better in all areas for option periods one and two. The SP does not earn the 1st IOP.

3.4. Determination Point #3: This DP is implemented only if the 1st IOP was earned at DP #1.

3.4.1. Earn. The SP achieved annual CPARS ratings of “Satisfactory” or better in all areas for option periods one through three. The SP earns the 2nd IOP.

3.4.2. Not Earn. The SP does not achieve annual CPARS ratings of “Satisfactory” or better in all areas for option periods one through three. The SP does not earn the 2nd IOP.

FA3002-14-R-0011

Attachment 3