Appx_F_IncentivePlan_(8_Nov_13).docx

Solicitation No. FA4890-13-R-0117

DRAFT

APPENDIX F

FORWARD OPERATING LOCATION BASE OPERATING SUPPORT (FOL-BOS) INCENTIVE PLAN

1.0 INTRODUCTION.

1.1 This Plan describes the process that will be used to assess and determine the incentive fee earned by the Contractor. The objective is to motivate the Contractor to effectively 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 (2) elements: performance incentives (PI), and special interest items (SII). Each element will be evaluated and calculated separately on a semi-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 FOL-BOS contract.

2.0 GENERAL PROCEDURES.

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

2.1.1 Optional Evaluation Periods. At contract award, the base year will have an Incentive Fee with two evaluation periods, Period 1 and Period 2. Option Years One through Five will not have an Incentive Fee unless it is in the best interest to the Government and the optional evaluation period is exercised. The Government has the unilateral right to exercise the Optional Evaluation Period(s) if the Contractor is provided a modification to exercise an evaluation period no later than 15 calendar days before the start of the upcoming evaluation period. If an optional evaluation period is exercised during an evaluation period that was not unilaterally exercised by the Government, i.e. if the Government choses to exercise Optional Evaluation Period 3 two months into Option Year One, a bilateral contract modification between Government and Contractor will be done.

2.2 Assessment and Payment Overview. The evaluation criteria and calculations as described in paragraph 3.0 for quality management and customer satisfaction evaluated performance, and paragraph 4.0 for SIIs will be utilized. The sum of these two areas will determine the incentive earned for the evaluation period. Periodic feedback will be provided by the AMIC Program Manager (PM) to the contractor. The PM will present all evaluation findings and preliminary results for each evaluation period to the Division Chief, AMIC/PMS, as the Functional Director (FD) for validation and approval. 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 this 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 made by a bilateral contract modification between Government and Contractor. Changes each period to the SII (reference paragraph 4.0) are not considered substantial and do not require a modification to the contract. The FD is the final approval for plan changes.

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 $10,000 per point for each of the ten (10) points available in the Performance element each evaluation period for a total of $100,000.

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 evaluation period, one (1) point per month, as defined below. Performance will be evaluated IAW the PWS, Service Summary Items 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 (Attachment 1).

3.2.1 Nonconformance. Failure to fulfill any contract requirement is a nonconformance. The Contractor shall take immediate corrective action for any nonconformance. Nonconformances are evaluated for risk using the 5X5 risk assessment model (Attachment 3), then communicated to the contractor in one of two forms:

3.2.1.1 Major Nonconformance. A nonconformance that negatively impacts, or has potential to impact, safety of personnel and/or equipment, performance (quality), schedule (delivery), or cost. The risk associated with this nonconformance is evaluated as Moderate or High. The CO will communicate a major nonconformance on a Corrective Action Request (CAR) form with a suspense date for the Contractor’s corrective action plan.

3.2.1.2 Minor Nonconformance. A nonconformance, which by itself does not adversely impact mission, safety of personnel and/or equipment, performance (quality), schedule (delivery), or cost. The risk associated with this nonconformance is evaluated as Low and is communicated by the COR through a First and/or Second Notice. First notices are issued for any identified minor nonconformance; second notices are issued for a repeat nonconformance or failing to correct a nonconformance within a reasonable amount of time. As a minimum, the Contractor’s corrective action plan shall address action taken to fix the immediate problem.

3.2.2 Quality Point Assignment Explanation (6 possible points).

The Government determines that an effective contractor Quality Control program overlays all services provided on the contract, increasing the likelihood of highly successful performance and decreasing the likelihood of discrepancies—or minor and major nonconformances. This quality point assessment is designed to provide incentive for the achievement of a Quality Control program that exceeds minimum requirements and expectations, thus positively influencing performance on each service area within the PWS.

For each calendar month of the evaluation period the contractor shall receive one (1) point if no major nonconformances or second notices are identified. The contractor shall receive zero (0) points any month in which the Government identifies minor nonconformances (Second Notices only)*, but no major nonconformances are identified. The contractor shall receive negative one (-1) point any month in which the Government identifies a major nonconformance. At the end of the evaluation period, the numbers earned are added together for the total points earned.

*The Government has not established a maximum acceptable number of minor nonconformances in any one month, so any number of minors will earn zero (0) points. However, the Government continuing to identify high numbers of minor nonconformances in subsequent months would indicate an ineffective quality management system, which is a major nonconformance.

Example; the Government identifies a major nonconformance in Oct, five (5) second notices in Jan with no other nonconformances identified. The point assignment is:

The contractor will receive three points out of a possible six.

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

The 429 EOS Commander, 612 SPTS PC9500 Program Manager, and AMIC PM will each complete a customer service survey (Attachment 1) each period. The AMIC PM 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.

3.2.4 PI Calculation. The overall PI will be calculated by multiplying the total points earned during the evaluation period by $10,000, the value assigned for each point.

3.2.4.1 Formula.

Points Awarded x $10K = PI Earned.

3.2.4.2 Sample Calculation. Each point is worth $10K

Contractor earns 8 of 10 available points:

8 x $10K = $80K

4.0 Special Interest Item. The PM may assign up to $25K for a Special Interest Item(s) (SII). If there is no SII for a semi-annual period, the $25K will not be used. When identified, a SII is an area of performance that the Government deems critical and/or requires special attention. No later than 30 calendar days prior to the end of an incentive fee period, 612 TOG or AMIC may submit a proposed SII to the AMIC PM for consideration. The Functional Director will review and approve SIIs. After the start of an evaluation period, a SII can only be implemented by a bilateral modification between the contractor and Government. The QAM will be notified within 10 calendar days of SII approval to ensure it is included in the surveillance plan. Attachment 2 contains an example SII(s) that may apply to an evaluation period. The PM will suspense a lead functional evaluator as necessary to evaluate the SII. The lead functional evaluator is responsible for providing a coordinated evaluation and recommended rating to the PM for each SII using the rating definitions specific to each SII. For the first evaluation period, Transition will be the SII.

5.0 TOTAL INCENTIVE EARNED. The total incentive earned is the sum of the PI and SII, if the SII is used.

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

Attachment 1

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, Squadron leaders, other key personnel?

RATING:__________________________

2. How well has the Contractor’s management team aggressively pursued and provided timely response to Government issues to enhance organizational-level support and mission effectiveness?

RATING:__________________________

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

RATING:__________________________

4. How well has the Contractor performed maintenance services on government assets?

RATING:__________________________

*Point Value will be removed prior to sending surveys to the Warfighting Customers

Attachment 2

Special Interest Item

Description: This SII will evaluate the Contractor’s efforts in transitioning from the current FOL-BOS contract to the follow-on contract IAW the PWS and Contractor’s Transition Plan. Evaluation will include: determine whether all major milestones were properly identified and met on schedule, the Contractor’s success in dealing with the outgoing incumbent Contractor and government management team, and the Contractor’s capability of meeting full BOS capability at full performance start. This SII will evaluate the Contractor’s ability to successfully assume requirements at full performance start. The fee amount for this SII is: $25,000K (or less for multiple SIIs.)

The SII will be rated as follows:

Outstanding. Exceeded all transition plan objectives and milestones. Fully capable to commence BOS requirements at full performance start. The Contractor will earn 100% of the available SII fee for achieving an Outstanding rating.

Good. Fully met 75% of all transition plan objectives and milestones, and exceeded some. Fully capable to commence BOS requirements at full performance start. The Contractor will earn 85% of the available SII fee for achieving a Good rating.

Satisfactory. Fully met all transition plan objectives and milestones. Fully capable to commence BOS requirements at full performance start. The Contractor will earn 50% of the available SII fee for achieving a Satisfactory rating.

Unsatisfactory. Failed to meet transition plan objectives and milestones. Not fully capable to commence BOS requirements at full performance start. The Contractor will earn 0% of the available SII fee for achieving an Unsatisfactory rating.

Attachment 3

Risk Assessment Model

DRAFT

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