Draft_MASS_Incentive_Plan_20130930.pdf

Solicitation No. FA4890-13-R-0007

APPENDIX Q

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND

TECHNICAL SUPPORT SERVICES CONTRACT INCENTIVE PLAN

DRAFT Appendix Q – 1 of 8

30 Sep 13

1.0 INTRODUCTION.

1.1 This Plan describes the process that will be used to assess and determine the incentive earned by the contractor. The objective is to motivate the contractor to effectively manage costs and improve performance in the rated areas, which directly impact performance of requirements described in the PWS. This Plan describes the procedures and specific evaluation criteria used to assess the contractor’s performance and to determine incentive earned. It consists of two elements: performance and cost. Each element will be evaluated and calculated separately on an annual basis. The results will be used in conjunction with the yearly contractor Performance

Assessment Report System assessment to provide a complete program assessment of the contractor’s performance on the Mobile Air Surveillance System Operations, Maintenance, and

Technical Support Services contract.

2.0 GENERAL PROCEDURES.

2.1 Evaluation Periods. Evaluations will occur on a semi-annual basis as follows:

Evaluation

Period

Date

Period 1 1 Oct 14 – 31 Mar 15

Period 2 1 Apr 15 – 30 Sep 15

Period 3 1 Oct 15 – 31 Mar 16

Period 4 1 Apr 16 – 30 Sep 16

Period 5 1 Oct 16 – 31 Mar 17

Period 6 1 Apr 17 – 30 Sep 17

Period 7 1 Oct 17 – 31 Mar 18

Period 8 1 Apr 18 – 30 Sep 18

Period 9 1 Oct 18 – 31 Mar 19

Period 10 1 Apr 19 – 30 Sep 19

Period 11 1 Oct 19 – 31 Mar 20

2.2 Assessment and Payment Overview. The evaluation criteria and calculations as described in paragraph 3.0 for Performance and paragraph 4.0 for Cost will be utilized. The sum of these two areas will determine the incentive earned for the period. Periodic feedback will be provided by the Program Manager (PM) to the contractor. The PM will present all evaluation findings and preliminary results for each evaluation period to the Functional Director (FD) for validation. The

Contracting Officer (CO) will inform the contractor in writing of the amount of incentive earned within 60 days after the end of the evaluation period. The CO will unilaterally modify the contract to incorporate the incentive earned. Invoicing and payment of the incentive will be made from the appropriate CLIN.

2.3 Procedures for Changing the Plan. Unilateral changes may be made to the Plan if the contractor is provided a modification no later than 15 calendar days before the start of the upcoming evaluation period. Changes affecting the current evaluation period will be by bilateral agreement between government and contractor, except as noted in paragraph 2.4 below.

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND

TECHNICAL SUPPORT SERVICES CONTRACT INCENTIVE PLAN

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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.

3.0 PERFORMANCE INCENTIVE (PI) PROCEDURES.

3.1 PI Fee: The contractor may earn $20,000 per point for each of the ten (10) points available in the Performance element, for a total of $200,000.

3.2 Determination of PI earned. The PI will be based on the quality of the contractor’s performance and the level of customer satisfaction provided. The assessment will use a Quality

Performance Index (QPI) where the contractor can earn up to six (6) points per period, one (1) point per month, as defined below. Performance will be evaluated IAW the PWS and Quality

Assurance Surveillance Plan (QASP). The contractor may earn up to four (4) additional points for superior service as determined by the results of customer service surveys.

3.2.1 A major nonconformance is defined as: A nonconformance that adversely impacts (or has the potential to) mission, safety of personnel or equipment, environment, performance (quality), schedule (delivery), or cost.

3.2.2 Quality Point Assignment Explanation (6 possible points).

Minus one (-1) point will be assigned for a calendar month during a calendar month when the government issues one or more major nonconformances.

One (1) point will be awarded for each calendar month when the government does not issue a major non-conformance for any requirements of the PWS.

3.2.3 Customer Satisfaction Point Assignment Explanation. (4 possible points).

The PM, QAM and ACC/A3OH will each complete a customer service survey (Attachment 2) each period. The PM’s survey will count double to provide additional weight to the contractor’s performance program-wide. The score for each survey will be determined by averaging the evaluated points for each question on the survey. Maximum score per survey is one (1) point.

The score for all surveys will be summed to arrive at the total score for customer satisfaction

(maximum of four (4) points.

3.2.3 PI Calculation. The overall PI will be calculated by multiplying the total points earned during the evaluation period by $20,000, the value assigned for each point.

3.2.3.1 Formula.

Points Awarded x $20K = PI Earned.

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND

TECHNICAL SUPPORT SERVICES CONTRACT INCENTIVE PLAN

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3.2.3.2 Sample Calculation. Each point is worth $20K

Contractor earns 8 of 10 available points:

8 x $20K = $160K

4.0 COST INCENTIVE (CI) PROCEDURES.

4.1 Determination of CI Earned. Cost incentives provide a focus for ensuring costs controlled by the contractor are minimized. The CI will have a ceiling of $100,000 per period and will be paid based on savings realized against the contractual target cost (TC). The TC will be based on the average cost to repair the top thirty-five (35) most failed repariable radar parts and the top eight

(8) most failed repairable communications systems parts as calculated over a historical three-year period. Attachment 2 lists these items along with the projected average total cost to repair each item for each year of the contract. For planning purposes, the estimated initial TC is $1,375,000, which is roughly the average semi-annual cost to repair the items based on the three-year historical data, escalated for inflation. The contractor shall track the actual repairs to these items on the monthly financial CDRL A001. The actual cost (AC) will be the sum of the costs to repair these items for the six-month period as reported on the March and September CDRL A001 each year.

The revised TC will be calculated semi-annually by multiplying the number of repairs for each item by the average cost to repair, as established in attachment 2, and summing the amounts for each item. The revised TC will be compared with the AC to determine the amount of CI earned.

Parts repaired on-site or at the repair facility in Colombia shall not be included any of the CI calculations. The target fee will be zero. The CI share ratio is 50/50 (government/contractor) and will be paid semi-annually.

4.2 Example Calculation.

4.2.1 CI Formula.

Final CI = (TC – AC) x Contractor Share Percent

CI Ceiling = $100,000; CI ≤ $100,000

4.2.1.1 Sample Calculation (Underrun).

TC $1.375M

AC $1.275M

TC = $1.375M

AC = $1.175M

Contractor Share = 50%

Cost Saved = ($1.375M - $1.175M) = $200,000

CI earned = Cost saved x Contractor Share = $200,000 x 50% = $100,000

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND

TECHNICAL SUPPORT SERVICES CONTRACT INCENTIVE PLAN

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4.2.1.2 Sample Calculation (Overrun).

TC $1.375M

AC $1.575M

TC = $1.375M

AC = $1.575M

Overrun = $200,000 = Zero CI earned

5.0 TOTAL INCENTIVE EARNED. The total incentive earned is the sum of the PI and the

CI. Using the example calculations above, assuming a cost underrun on the CI, the total incentive earned for the period would be $160,000 + $100,000 = $260,000.

6.0 INCENTIVE RESULTS. The PM will present the proposed incentive results each period to the FD to ensure consistency and integrity in application of the Incentive Plan. The FD will validate the PM’s inputs, recommendations, and calculations. Incentive results each period are not closed until final coordination with the FD. 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.

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND TECHNICAL SUPPORT SERVICES

CONTRACT INCENTIVE PLAN

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Attachment 1

Average Item Depot Repair Costs

Part# Description

Baseline Avg.

Repair cost

(FY10-12) 2015 2016 2017 2018 2019

365D019G01 Pulse Forming Network $17,240.00 $18,297.91 $18,572.38 18,850.96 19,133.73 19,420.73

1D20464G01 Inverter Power Modulator $12,638.00 13,413.51 13,614.71 13,818.93 14,026.21 14,236.61

1A23446H01 UPX-27 Interrogator Set $6,653.00 7,061.25 7,167.17 7,274.68 7,383.80 7,494.55

1D17798G02 Inverted Control Regulator $3,137.00 3,329.50 3,379.44 3,430.13 3,481.58 3,533.81

3D55778G01 Trigger Amplifier $4,247.00 4,507.61 4,575.23 4,643.86 4,713.52 4,784.22

1D17934G02 FCPS $3,695.00 3,921.74 3,980.56 4,040.26 4100.87 4162.39

1D18517G02 Fil Inter Relay $2,744.00 2,912.38 2,956.07 3000.41 3045.42 3091.10

1D17712G01 Radio Frequency Driver $24,693.00 26,208.25 26,601.37 27000.39 27405.40 27816.48

1D27738G01 Def Power Control $3,362.00 3,568.30 3,621.83 3676.16 3731.30 3787.27

645A589A07 Low Noise Amplifier $4,572.00 4,852.55 4,925.34 4999.22 5074.21 5150.32

1D27107G01 Processor Timing Generator $8,996.00 9,548.03 9,691.25 9836.62 9984.17 10133.93

335D501G01 Twystron $19,276.00 20,458.84 20,765.72 21077.21 21393.96 21714.26

146C795A01 Pulse Transformer $7,969.00 8,458.01 8,584.88 8713.65 8844.36 8977.02

353D582G01 Rotary Joint $30,627.00 32,506.39 32,993.98 33488.89 33991.22 34501.09

1D17627G01 / 3D59810G03 Frequency Generator $24,074.00 25,551.27 25,934.54 26323.56 26718.41 27119.19

365D140G01 Capacitor Filter Bank $1,995.00 2,117.42 2,149.18 2181.42 2214.14 2247.35

645A570A01 Radio Frequency Receiver $7,170.00 7,609.98 7,724.13 7839.99 7957.59 8076.96

1D27308G01

Intermediate Frequency Receiver Circuit Card Assembly $7,081.00 7,515.52 7,628.25 7742.67 7858.81 7976.70

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND TECHNICAL SUPPORT SERVICES

CONTRACT INCENTIVE PLAN

DRAFT Appendix Q – 6 of 8

30 Sep 13

Part# Description

Baseline Avg.

Repair cost

(FY10-12) 2015 2016 2017 2018 2019

3D56825G01 8086 Processor $4,343.00 4,609.50 4,678.64 4748.82 4820.052 4892.353

1D23436G01 280V Power Supply $1,517.00 1,610.09 1,634.24 1658.754 1683.635 1708.889

1D17710G01 Output Diode Assembly $1,436.00 1,524.12 1,546.98 1570.185 1593.737 1617.644

1A20454H01 Compressor-Dehydrator $3,979.00 4,223.17 4,286.51 4350.808 4416.07 4482.311

602B883H01 Filament Transformer $6,802.00 7,219.39 7,327.69 7437.605 7549.169 7662.407

1D27626G01 Control Board $6,006.00 6,374.55 6,470.17 6567.223 6665.731 6765.717

1D21949G01 Serial Communications Interface $6,634.00 7,041.09 7,146.70 7253.901 7362.709 7473.15

1D17935G01 VPPS $2,088.00 2,216.13 2,249.37 2283.111 2317.357 2352.118

1D18652G01 Fault Memory Board $2,425.00 2,573.81 2,612.41 2651.596 2691.37 2731.741

335D502G01 Focus Coil $14,886.00 15,799.46 16,036.45 16277 16521.15 16768.97

1D27749G02 Formatter Interface $4,273.00 4,535.21 4,603.23 4672.278 4742.363 4813.498

645A506G01 Power Supply 5V $3,200.00 3,396.36 3,447.31 3499.02 3551.505 3604.778

1D18183G01 256k Memory $3,235.00 3,433.51 3,485.01 3537.285 3590.344 3644.2

342D902G01 Motor, Antenna Drive $4,500.00 4,776.14 4,847.78 4920.497 4994.304 5069.219

1D24318G01 8086 Processor $4,761.00 5,053.15 5,128.95 5205.884 5283.973 5363.232

344D996G01 Electronic Switch Assembly $34,780.00 36,914.22 37,467.94 38029.96 38600.41 39179.41

1D18291G02 DHRO Interface $6,482.00 6,879.76 6,982.95 7087.694 7194.01 7301.92

Table Q-1-1 Top 35 Radar Failure Items

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND TECHNICAL SUPPORT SERVICES

CONTRACT INCENTIVE PLAN

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Part# Description

Baseline Avg.

Repair cost

(FY10-12) 2015 2016 2017 2018 2019

RFT-500-20 RFT $3611.00 $3,832.584 $3,890.073 $3,948.424 $4,007.650 $4,067.765

SDM-300A Modem $826.00 $876.686 $889.837 $903.184 $916.732 $930.483

RSU-503 Switch Unit $800.00 $849.091 $861.827 $874.755 $887.876 $901.194

SMS-301 1:1 Switch $680.00 $721.727 $732.553 $743.541 $754.695 $766.015

URC-200 Radio $2,500.00 $2,653.409 $2,693.210 $2,733.608 $2,774.612 $2,816.231

100-008350 SIU 2100 Interface Unit $3,035.00 $3,221.238 $3,269.557 $3,318.600 $3,368.379 $3,418.905

AN-USQ-111(V) MX-512 Data Terminal Set $5,500.00 $5,837.500 $5,925.062 $6,013.938 $6,104.147 $6,195.709

CISCO2811/S28NSPSK9

Integrated Service Router( Cisco

2811/S28NSPSK9) $1,000.00 $1,061.364 $1,077.284 $1,093.443 $1,109.845 $1,126.493

Table Q-1-2 Top 8 Communications System Failure Items

MOBILE AIR SURVEILLANCE SYSTEM OPERATIONS, MAINTENANCE AND

TECHNICAL SUPPORT SERVICES CONTRACT INCENTIVE PLAN

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Attachment 2

Customer Satisfaction Survey

Please answer the following questions using the ratings provided:

1. How well has the contractor’s management team openly communicated, participated in problem-solving, and worked to enhance positive working relationships with the government’s management team, other key personnel, or partner nation customers?

RATING:__________________________

2. How well has the contractor’s management team identified and pursued resolution of parts obsolescence or adverse partner nation maintenance trends?

3. How well has the contractor’s management team responded to and managed special projects, new requirements, and government requests for assistance?

4. How well has the contractor performed maintenance services on government systems and provided technical support to partner nations?

Rating Description Point

Value

Outstanding Contractor consistently exceeds requirements 1

Good Contractor occasionally exceeds requirements 0.5

Satisfactory Contractor meets requirements 0

Unsatisfactory Contractor fails to meet requirements -1