Attach 20 - Section H - Special Contract Requirements_28 Feb 22.pdf

Attachment 20

FA300221R0012

28 Feb 22 Source Selection Information -- See FAR 2.101 and 3.104

Controlled Unclassified Information (CUI)

Section H – Special Contract Requirements

Performance Incentive Plan For

Key Personnel and Performance

H.0 PERFORMANCE INCENTIVE REDUCTION (PIR)

H.1 PIR Application for Key Personnel: The Performance Incentive Reduction (PIR) for Key Personnel is intended to incentivize the Service Provider (SP) to maintain the proposed quality and number of staff for the Key Positions identified in this clause from contract mobilization through contract completion. The Key Personnel PIR applies a negative incentive when key positions remain vacant for a period greater than 60-calendar days and will be re-assessed every 30 calendar days until the position is filled. Vacancy is defined as a Key Position not filled by an individual, a Key Position being filled by an under-qualified individual (not possessing the necessary qualifications mandated by the PWS), or an individual in a Key Position who is unable to perform work to the standards set forth in the PWS or AFI. The Administrative Contracting Officer (ACO) may make a written determination, that may be kept in the contract file, that an unfilled position is excusable for all, some, or none of the time based upon the circumstances causing the unfilled position. This plan details how the PIR will be calculated when the SP fails to fully staff Key Positions.

H.1.2 Key Positions: The "Key Positions" are identified in Table H-1, along with the associated Contract Line-Item Number (CLIN), PWS sections/references, and position title:

Table H-1 Key Positions CLIN PWS Section Key Positions

X008 2J.1.1 Program Manager X006 10.J.1.1 and 10.1.2.8.8.1 Environmental Branch Manager X008 11J.1 and 11J.1.5 Supervisory Shop Person Responsible for

Plumbing and Wastewater Operations X008 11J.1.9 Supervisory Shop Person Responsible for Air

Conditioning and Refrigeration Operations X008 11J.1.2 Supervisory Shop Person Responsible for

Structures Operations X008 11J.1.13 Supervisory Shop Persons Responsible for

Electrical Operations X007 11.J.1.48 and 11.1.1.2.1.1. Operations Manager X028 12J.1.1 Director of Civil Engineering X029 12.J.1.2 and 12.1.2.2 Chief Engineer X029 12.J.1.3 and 12.1.2.2 Design Civil Engineer X029 12.J.1.4 and 12.1.2.2 Design Mechanical Engineer

X029 12.J.1.5 and 12.1.2.2 Design Electrical Engineer X029 12.J.1.6 and 12.1.2.2 Design Architect X029 12.J.1.7 Community Planner X031 12.J.1.16 IGI&S/GeoBase Manager X029 12.J.1.21 Programmer X052 14.J.1.1 and 14.1.14.1 Emergency Management Section Chief

H.1.3 Evaluation Periods: The SP retains the flexibility to use a single employee to fill up to two (2) Key Positions based on vacancy for up to 60-calendar days to cover training, vacations, or health issues as long as the individual has the qualifications set forth for those positions in the PWS. However, when a vacancy occurs, for any reason, the SP shall have a plan for immediate coverage and submit it to the ACO within five (5) working days from date of the vacancy. In rare cases, the SP may submit a request in writing to the ACO for approval requesting an extension past 60 calendar days. Personnel occupying Key Positions shall not be cross-utilized or reclassified just to cover the permanent vacancy in order to circumvent the 60- calendar day window; thereby, creating another vacant Key Position. Records of the SP’s ability to maintain the proposed quality and number of staff for the Key Positions will be referenced in respective annual CPARS assessments.

H.1.4 Assessment and Payment Overview. The Chief Contracting Officer Representative (C-COR) will present all monthly key personnel status and PIR calculations to the Functional Commander (FC) and Administrative Contracting Officer (ACO) for validation. The final PIR determination is the unilateral decision of the Government. The ACO will inform the SP in writing of the PIR amount assessed and the total amount the SP may invoice for the applicable CLIN. The ACO will provide this notice after the close of the evaluation period.

The PIR will be applied to SP invoices on a monthly basis. Should the SP wish to contend the performance calculations and/or the PIR determination are in error, the SP shall notify and provide substantiating documentation to the ACO within three (3) business days.

H.1.5 PIR Withholds: A PIR is applied to the applicable CLINs when the SP is unable to fill a Key Position vacancy IAW this PIR. The PIR applies a negative incentive when Key Positions remain vacant for a period greater than 60-calendar days and will be re-assessed every 30-calendar day until the Key Position is filled. The PIR will continue to be assessed for each additional 30-calendar day period the position(s) remain(s) unfilled. The value of each PIR, CLINs, and function is outlined below in Table H.1.2. These values reflect the base period. The values for each option period through the life of the contract will include an escalation rate of 1.2% applied to the previous period's value.

Table H.1.2 Key Personnel Key Position PIR Amount Frequency

Program Manager $31,884.16 Per Position/Per Month Environmental Branch Manager

$18,144.00 Per Position/Per Month

Supervisory Shop Person Responsible for Plumbing and Wastewater Operations

$5,936.00 Per Position/Per Month

Supervisory Shop Person Responsible for Air Conditioning and Refrigeration Operations

$9,968.00 Per Position/Per Month

Supervisory Shop Person Responsible for Structures Operations

$12,096.00 Per Position/Per Month

Supervisory Shop Person Responsible for Electrical Operations

$15,680.00 Per Position/Per Month

Operations Manager $15,120.00 Per Position/Per Month Director of Civil Engineering $17,136.00 Per Position/Per Month Chief Engineer $18,902.24 Per Position/Per Month Design Civil Engineer $15,904.00 Per Position/Per Month Design Mechanical Engineer $17,248.00 Per Position/Per Month Design Electrical Engineer $14,560.00 Per Position/Per Month Design Architect $13,552.00 Per Position/Per Month Community Planner $7,616.00 Per Position/Per Month IGI&S/GeoBase Manager $11,760.00 Per Position/Per Month Programmer $13,104.00 Per Position/Per Month Emergency Management Section Chief

$19,712.00 Per Position/Per Month

NOTE: For each 30-calendar day period when a Key Position is vacant, under-qualified (not possessing the necessary qualifications mandated by the PWS), or otherwise unable to perform work to the standards set forth in the PWS, a monetary PIR will be assessed on the SP's monthly invoice. Every 30-calendar day, the ACO will identify any reduction(s) the SP shall apply to the end of each month's invoice. The SP shall be required to invoice for the CLIN amount less the PIR withhold.

BASE YEAR EXAMPLE: CLIN 0008 is awarded for the price of $546,585.60 with a monthly breakdown of $31,884.16 per month for a Program Manager. The SP experiences a “Program Manager” vacancy as listed under the "Key Positions" section, and the vacancy is not filled within 60-calendar days. After the position has been vacant for 60-calendar days, the Government may assess the PIR at a price of $31,884.16 per month until the SP fills the vacancy.

The SP will continue to reduce their invoices by $31,884.16 per month until the vacancy is filled, and the ACO acknowledges the position has been filled. Likewise, if multiple Key Positions are vacant for more than 60-calendar days, the SP shall invoice for the CLIN price minus the respective PIR amount for those vacancies in the month(s) occurring during the 61st calendar day of the vacancy, and the PIR amounts will add up based on how many key positions are vacant.

OPTION YEAR 1 EXAMPLE: CLIN 0008 is awarded for the price of $562,983.17 with a monthly breakdown of $32,266.77 per month for a Program Manager. The SP experiences a “Program Manager” vacancy as listed under the "Key Positions" section, and the vacancy is not filled within 60-calendar days. After the position has been vacant for 60-calendar days, the Government may assess the PIR at a price of $32,266.77 per month until the SP fills the vacancy.

The SP will continue to reduce their invoices by $32,266.77 per month until the vacancy is filled, and the ACO acknowledges the position has been filled. Likewise, if multiple Key Positions are vacant for more than 60-calendar days, the SP shall invoice for the CLIN price minus the respective PIR amount for those vacancies in the month(s) occurring during the 61st calendar day of the vacancy, and the PIR amounts will add up based on how many key positions are vacant.

The SP may be charged for multiple CLINs and multiple PIR amounts if any Key Positions are left vacant, are under-qualified, or otherwise unable to perform work to the standards set forth in the PWS. In the highly unlikely scenario, the SP has vacancies in every Key Positions for all functions for a period of 60-calendar days, a PIR will be deducted for each position.

Additionally, if the SP experiences a Service Summary failure that can be connected to the vacancy of a Key Position, they may also be assessed the amount of the PIR in addition to normal contract deficiency documentation (Corrective Action Report - CAR, SP Deficiency Report -CDR, Letter of Concern, and any contractual remedy).

H.1.6 SP Manning Reports and Certification: The SP shall certify monthly the status of Key Positions and shall disclose any vacant positions, positions manned by underqualified personnel, or positions with personnel otherwise unable to perform work to the standards set forth in the PWS. The Government reserves the right to enact the PIR, after the fact, should a circumstance of unreported vacancies, underqualified personnel, or personnel otherwise unable to perform work to the standards set forth in the PWS arise.

H.1.7 Changing Procedures. Administrative changes to this plan (dates, validation process, etc.)

may be executed unilaterally via letter signed by the ACO no less than 10 business days prior to the start of the affected evaluation period. Otherwise, changes will require a bilateral agreement between the Government and SP. All changes to the PIR for Key Personnel require a PWS revision and bilateral agreement between the Government and SP.

H.1.8 Contract Termination. If the contract is Terminated for Convenience of the Government during an active evaluation period, the standard evaluation process will apply on a prorated basis for the reduced period. Inclusion and implementation of this plan does not limit the Government’s rights to execute Termination for Default actions as authorized by contract clause 52.249-8, Default (Fixed-Price Supply and Service) or any other authority provided by the terms and conditions of the contract.

(End Clause)

H.2 PIR Application for Performance Thresholds: The Performance Incentive Reduction (PIR) for Performance is to incentivize the SP to consistently perform satisfactorily in select areas of incorporated PWS’s in this contract. This clause details the process that will be applied to calculate the PIR to be withheld from payment invoices when objective performance incentive thresholds are not met in the areas described in the PIR Table below (Para H.2.5.1). Service Provider (SP) Performance will be monitored continuously and assessed on a quarterly basis.

PIR results may be addressed in SP Performance Assessment Report System (CPARS) assessments.

H.2.1 Evaluation Periods. Evaluations will occur daily, weekly, or monthly. However, PIR will be calculated and applied on a quarterly basis. The PIR evaluation periods are as follows:

Table H.1.3 Evaluation Periods Period of Performance

Q1 PIR

End

Q2 PIR End Q3 PIR End

Q4 PIR

End

Base Period N/A N/A 30 Jun 23 30 Sep 23 Option Period 1 31 Dec 23 31 Mar 24 30 Jun 24 30 Sep 24 Option Period 2 31 Dec 24 31 Mar 25 30 Jun 25 30 Sep 25 Option Period 3 31 Dec 25 31 Mar 26 30 Jun 26 30 Sep 26 Option Period 4 31 Dec 26 31 Mar 27 30 Jun 27 30 Sep 27 Incentive Option Period 5

31 Dec 27 31 Mar 28 30 Jun 28 30 Sep 28

Incentive Option Period 6

31 Dec 28 31 Mar 28 30 Jun 29 30 Sep 29

H.2.2 Assessment and Payment Overview. The performance criteria described IAW applicable PWS Performance Measurement Areas (PMA’s) and paragraph H.2.5 and sub-paragraphs of Performance Incentive Procedures will be utilized. Results will be considered on a “pass/fail” basis for each respective measurement threshold. The Chief Contracting Officer Representative (C-COR) will present all quarterly performance evaluations and PIR calculations to the Functional Commander (FC) and Administrative Contracting Officer (ACO) for validation. The final PIR determination is the unilateral decision of the Government. The ACO will inform the SP in writing of the PIR amount assessed and the total amount the SP may invoice for the applicable CLIN. The ACO will provide this notice quarterly after the close of the evaluation period. The PIR will be applied to SP invoices on a quarterly basis and one month in arrears. For example, Quarter 3 PIR will consider performance occurring June - August and any withhold will be implemented on the September invoice.

H.2. Changing Procedures. Administrative changes to this plan (dates, validation process, etc.) may be executed unilaterally via letter signed by the ACO no less than 10 business days prior to the start of the affected evaluation period. Otherwise, changes will require a bilateral agreement between the Government and SP. All changes to PIR for Performance Thresholds require a PWS revision and bilateral agreement between the Government and SP.

H.2.4 Contract Termination. If the contract is Terminated for Convenience of the Government during an active evaluation period, the standard evaluation process will apply on a prorated basis for the reduced period. Inclusion and implementation of this plan does not limit the Government’s rights to execute Termination for Default actions as authorized by contract clause 52.249-8, Default (Fixed-Price Supply and Service) or any other authority provided by the terms and conditions of the contract.

H.2.5 PERFORMANCE INCENTIVE PROCEDURES.

H.2.5.1 PIR Table: The PIR applies 0.5% reductions for substandard performance in the Performance Measurement Areas identified below:

Performance Measurement Area

Performance Threshold

Assess PIR Applied

PIR CLIN

12.2.5. Complete accurate

project programming indicating refined, identified, and validated project scopes and cost estimates

Programmed Amount (PA) is +/- 20% (per project) of actual award amount 12.1.2.1.2.1.1

Monthly Quarterly 0.5% X029

12.2.6. Provide complete

accurate project design data/documentation

Hold project Current Working Estimate (CWE) within 15% (per project ) of actual award amount without reducing scope 12.1.2.2.2.1 & 12.1.2.2.2.1.5.2

Monthly Quarterly 0.5% X028

12.2.20. Provide at least daily

construction inspection for all facility projects performed on the installation and associated properties except those being inspected by other agencies.

100% Compliance. Inspect each project, at least once daily and annotate inspection results on AF IMT 1477 (or approved government form)

Monthly Quarterly 0.5% X029

12.2.29. Complete construction

projects within the original Period of Performance (PoP) without time growth due to design deficiencies or delays caused by the SP.

95% of Construction Projects completed within the original PoP, reported monthly. All period of performance extensions must have written authorization from the ACO.

12.1.2.2.1.5

Monthly Quarterly 0.5% X029

Maintain Improved Grounds 13.2.1

No more than 3 discrepancies/customer complaints per month

Monthly Quarterly 0.5% X032

Maintain Airfield Grounds 13.2.2

No more than 2 discrepancies/customer complaints per month

Monthly Quarterly 0.5% X045 & 0046*

Ensure ILS-S rejected transactions are reprocessed within 3 duty days for controlled/sensitive assets and 7 calendar days for all other assets.

23.1.2.5.2 and 4 and 23.1.2.7

100% compliance Monthly Quarterly 0.5% X055

Ensure physical materiel balances match current Integrated Logistics System- Supply record balances IAW

PWS 23. 23.1.2.11

100% compliance Monthly Quarterly 0.5% X056

Ensure mobility assets are inspected, inventoried and issued in ILS-S Mobility. Ensure the Inventory Adjustment Document Register M-10 (monthly) is certified and Analysis performed

IAW PWS 23.1.2.3.

100% compliance Monthly Quarterly 0.5% X054

Maintain zero reportable munitions mishaps. 23.1.2.13.1.

23.1.2.13.8.

Zero reportable munitions mishaps attributable to the Service Provider

Monthly Quarterly 0.5% X058

Ensure 100% munitions accountability. 23.1.2.13.1.

23.1.2.13.6.

100% Compliance Monthly Quarterly 0.5% X058

Ensure deployed equipment status is accurately reflected in DPAS. Ensure CFO data in DPAS must match KSDs and data plate upon receipt.

23.1.2.6.1

100% data Accuracy FIAR Requirement

Monthly Quarterly 0.5% X056

Ensure compliance with proper handling and storage of all Hazardous Material 23.1.2.5.1.

Ensure shelf-life items and Functional Check assets in storage are properly managed.

23.1.2.4 All supply items

requiring TCTO modifications are identified and managed properly 23.1.2.10

100% Compliance FIAR Requirement

Monthly Quarterly 0.5% X054

32.2.1: Accurate and on-time Airfield Services Weather Products (observations, WWA’s, etc) 32.1.2.1.2

32.1.2.1.5 32.1.2.2.9

98% accuracy and timeliness Monthly 0.5% X069

32.2.2: Accurate Mission Execution Forecasts (MEFs) 32.1.2.2.1

95% accuracy Monthly 0.5% X069

32.2.3: Weather personnel properly follow standby procedures when required 32.1.2.2.8

100% Compliance Quarterly 0.5% X069

10.1.2.5.6. Schedule of

Reimbursements

No more than one (1) revision required per report Monthly Quarterly 0.5% 0X001

10.1.2.1., 10.1.2.2 Utility Consumption and Cost Reports

No more than one (1) revision required per report Monthly Quarterly 0.5% X001

10.1.2.4. Execution Plans

No more than one (1) revision required per report Quarterly Quarterly 0.5% X001

Note: * CLIN X045 is for Growing Season and CLIN X046 is for Non-Growing Season

H.2.5.2 Performance PIR Formulas.

PIR = 0.5% x APPLICABLE CLIN

H.2.5.3 Sample Calculation.

Assume the following:

CLIN 0069 Amount: $250,000* CLIN 0058 Amount: $350,000* CLIN 0029 Amount: $100,000* Performance Thresholds: See table in Para. H2.5.1 above

* CLINs and Values are notionally assigned for illustrative purposes only.

Example 1:

• 1st QTR FY22 Performance: SP achieved all thresholds with the exception of performing at only 83% on Weather Services Inspections for the quarter.

• 1st QTR PIR: Quarterly Weather Service Inspections (CLIN 0069): [[($250,000) x 3mo] x 0.5%] = $3,750 per CLIN 0069.

• Jan 2022 Invoice reduction as submitted on 1 Feb 22: CLIN 0069: $250,000 - $3,750 =$246,250

• Therefore, SP may invoice for $246,250 on CLIN 0069.

Exmaple 2:

• 2nd QTR FY22 Performance: SP achieved all thresholds with the exception of performing at only 70% on Munitions Accountability in Jan 22.

• 2nd QTR PIR: Monthly Munitions Accountability (CLIN 0058): $350,000 x 0.5% = $1,750

• Apr 2022 Invoice reduction as submitted on 2 May 22: CLIN 0058: $350,000 - $1,750 = $348,250

• Therefore, SP may invoice for $348,250 on CLIN 0058.

Example 3:

• 3rd QTR FY22 Performance: SP achieved all thresholds with the exception of meeting the Programmed Amount (PA) is +/- 20% on 2 projects in Apr 22 and 1 project in May 22.

• 3rd QTR PIR: Monthly Programmed Amount vs Award (CLIN 0029): [[($100,000) x 2 mo] x 0.5%]] = $1,000

• Jul 2022 Invoice reduction as submitted on 2 July 22: CLIN 0029: $100,000 - ($1,000) = $99,000

• Therefore, SP may invoice for $99,000 on CLIN 0029.

The PIR is calculated at .5% of that CLIN for the monthly value, regardless of how many projects are awarded. The Performance Thresholds will be evaluated per month. For example, if one (1) project out of 10 projects does not meet the Performance Threshold, the metric is not met, and the .5% PIR for that CLIN will be deducted for that month.

H.2.5.4 Should the SP wish to contend the performance calculations and/or the PIR determination are in error, the SP shall notify and provide substantiating documentation to the ACO within three (3) business days.

H.3 INCENTIVE-OPTIONS

H.3.1 Incentive Options (IO) one (1) and two (2) shall be available to the SP for achieving satisfactory or better performance ratings during performance of this contract. The SP shall be able to earn up to two twelve (12)-month IOs over a 2-year period, beginning with Option Year 2 and running through Option Year 3. The SP's performance will be evaluated annually and an extension of twelve (12) months per option year may be exercised in the form of an IO, provided the criteria for earning the IO were met, a continued requirement exists, and funding is available.

Note, meeting the requirements for IO 1 and 2 does not require the Government to exercise IO 1 or 2. The Government has the discretion to decide whether to exercise IO 1 or 2.

H.3.2 Basis for evaluation: Determination to exercise the IO(s) shall be based solely on the annual CPARS ratings in the Past Performance Information Retrieval System (PPIRS).

H.3.3 Determining Official: The ACO will make the determination if the SP meets the IO(s) requirements.

H.3.4 Timelines: Within 10 calendar days from date of CPARS completion, the ACO and PM shall determine on an annual basis, if the IO(s) are available based on the criterion stated below.

If the IOs are available, the Government IO(s) can exercise the IOs IAW FAR clause 52.217-9.

H.3.5 Monitoring of the performance: Monitoring of performance ratings for purposes of determining availability of the IOs will start with the second exercised option year in the contract. By doing so, the SP will have sufficient time in the basic contract period to resolve start-up issues, and to bring their program up to full capacity.

H.3.6 Expected ratings: To meet the requirements for IO 1, the SP shall achieve Satisfactory or better ratings in all CPARS rating areas at the end of Option Year 2. To meet the requirements for IO 2, the SP shall achieve Satisfactory or better ratings in all CPARS rating areas at the end of Option Year 3. (See H.3.7 below for a visual break down).

H.3.7 Conditions: The Government may exercise the two IOs, if all the regular options have been exercised (FY24 – FY27), and SP has met the requirements for making the two IOs available. The IO evaluation period will commence with completion of the second contract option period (FY25). The relationship between evaluation periods and IO periods is as follows:

Evaluation Period for Incentive Option Periods

Base Period: 1 Apr 23 – 31 Mar 24

Mobilization Period (2 months): 1 Apr 23 – 31 May 23 Full Performance (10 months): 1 Jun 23 – 31 Mar 24*

Option 1 – 1 Apr 24 – 31 Mar 25* Option 2 – 1 Apr 25 – 31 Mar 26* - Incentive Option 1 Determination* Option 3 – 1 Apr 26 – 31 Mar 27* - Incentive Option 2 Determination* Option 4 – 1 Apr 27 – 31 Mar 28* IO Option 1 – 1 Apr 28 – 31 Mar 29* IO Option 2 – 1 Apr 29 – 31 Mar 30

*NOTE: The exercise of all IOs is contingent upon the SP maintaining a Satisfactory or better rating as described in paragraph H.2.5 and sub-paragraphs, a continuing requirement exists, and sufficient funding is available. However, meeting the requirements for IO 1 and 2 does not require the Government to exercise IO 1 or 2. The Government has the discretion to decide whether to exercise IO 1 or 2.