Atch 11 - Performance Incentive Plan_23 Jun 17.docx

FOR OFFICIAL USE ONLY

Source Selection Information – See FAR 2.101 and 3.104

RFP Attachment 11 Sheppard Base Maintenance Contract Performance Incentive Plan

This Performance Incentive Plan (PIP) is comprised of two one-year Incentive Option Periods (IOPs). This plan details the IOP process and explains how the incentive is applied.

Incentive Option Periods

1.0. Definitions

1.1. “Incentive Option Period (IOP),” refers to a period of performance established under this competitively awarded contract in which the Service Provider (SP) may be awarded an option in the future based on a contingency. In this case, the contingency is defined as the SP receiving exclusively “Satisfactory” or higher Contractor Performance Assessment Reporting System (CPARS) documented ratings in all evaluated areas of contract performance considered at the effective Determination Point.

1.2. “Determination Point (DP),” refers to the scheduled point in time when the Administrative Contracting Officer (ACO) makes a unilateral decision as to whether the SP has become eligible or ineligible for an opportunity to perform a future IOP. An affirmative determination does not automatically entitle the SP to perform during a particular IOP, but rather affords the SP an opportunity to perform during a particular IOP contingent upon the ACO determining the requirements of FAR Part 17.202 – Use of Options are met and exercising the IOP IAW FAR 52.217-9, Option to Extend the Term of the Contract.

1.3. “Eligible,” refers to the ACO’s affirmative decision that the SP has met the required criteria, (i.e., received exclusively “Satisfactory” or higher CPARS ratings in all evaluated areas of performance) which in turn, supports the ACO’s decision to exercise either Option 5 (IOP1) or Option 6 (IOP2).

2.0. Introduction

2.1. The objective of this incentive approach is to motivate consistent, “Satisfactory” or better performance in all CPARS rated areas from the outset of SP performance. For this reason, the DP for IOP1 eligibility relates directly to initial performance quality (the base period of performance and first option period). Subsequent IOP DPs consider performance occurring after the first option period.

3.0. IOP Parameters

3.1. The SP becomes eligible or ineligible for IOPs based on CPARS performance ratings. One or more CPARS rating(s) below “Satisfactory” in any rated area (i.e. Quality, Schedule, Cost Control, Management, Small Business Utilization, and Regulatory Compliance) may result in the loss of eligibility for the IOPs. Only “Satisfactory” or higher CPARS ratings in all rated areas will guarantee continued IOP eligibility.

3.2. All 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. As such, it should be understood that becoming “eligible” for IOPs does not guarantee future performance of 5th or 6th Option Periods. In addition to maintaining eligibility through “Satisfactory” or higher CPARS ratings, the IOPs remain contingent upon the Government’s unilateral right to exercise the four option periods consistent with the requirements of FAR Part 17.207 – Exercise of Options.

3.3. Within 45 days of CPARS finalization, at the applicable DP described in Section 2.3. below, the ACO will determine whether the SP is eligible or ineligible for a particular IOP. The ACO will notify the SP as soon as practicable upon making the determination.

4.0. IOP Implementation

4.1. This section illustrates the DPs and IOP eligibility process. There are up to two possible DPs (DP #1 and DP #2) and each is described below. Each DP makes reference to “IOP1”, and/or “IOP2”. IOP1 refers to the 5th Option Period, and IOP2 refers to the 6th Option Period. To merit an opportunity to become eligible for IOP2, the SP must be eligible for IOP1 first. The below figure is a visual chart depicting the IOP DPs and IOP eligibility process:

***Note: The contract durations depicted in this chart indicates maximum periods of performance if ALL options are exercised IAW FAR 52.217-9.

4.2. DP #1.

4.2.1. Eligible. The SP has achieved CPARS ratings of “Satisfactory” or better in all evaluated performance areas during the base and Option 1 periods. The SP becomes eligible for IOP1, therefore, the possible contract duration becomes six years. Although eligible for IOP1, this option may or may not be exercised by the ACO in accordance with FAR 52.217-9. The Government will continue to review CPARS ratings beyond Option 1 before exercing IOP1 and IOP2. If the SP becomes eligible for IOP1 at this determination point, the SP establishes an opportunity to become eligible for IOP2 at DP #2.

4.2.2. Ineligible. The SP did not achieve annual CPARS ratings of “Satisfactory” or better in all evaluated performance areas during the base and Option 1 period of performance. Since the SP must be eligible for IOP1 to merit an opportunity to become eligible for IOP2, the SP becomes ineligible for IOP2. However, the SP will be afforded an opportunity to become eligible for IOP2 at DP #2.

4.3. DP #2.

4.4.1. Eligible. The SP has achieved CPARS rating of “Satisfactory” or better in all evaluated performance areas during the Option 2 period. If at decision point #1, the SP was eligible for the 1st incentive option; then the SP now becomes eligible for the 2nd incentive option and the the possible contract duration becomes seven years. Although eligible, this option may or may not be exercised by the ACO in accordance with FAR 52.217-9. The Government will continue to review CPARS ratings beyond Option 1 before exercing IOP1 and IOP2.

4.4.2. Eligible at DP#2 after being ineligible at DP#1. If the SP was determined ineligible at DP#1 but achieved CPARS rating of “Satisfactory” or better in all evaluated performance areas during the Option 2 period, the SP becomes eligible for IOP1, therefore, the possible contract duration becomes six years. Although eligible for IOP1, this option may or may not be exercised by the ACO in accordance with FAR 52.217-9. The Government will continue to review CPARS ratings beyond Option 1 before exercing IOP1 and IOP2. The SP did not achieve annual CPARS ratings of “Satisfactory” or better in all evaluated performance areas during the Option 2 period.

The SP becomes ineligible for both IOPs, therefore, the possible contract duration becomes five years.

4.3.2. Ineligible at DP#2 after being ineligible at DP#1. The SP did not achieve annual CPARS ratings of “Satisfactory” or better in all evaluated performance areas during the Option 2. The SP becomes ineligible for incentive options. The contract duration remains five years.

Source Selection Plan - FA3002-16-R-0019 Attachment 11

FOR OFFICIAL USE ONLY

Source Selection Information – See FAR 2.101 and 3.104 image1.png image2.png