Appendix_F_-_Award_Fee_Plan_(5_Dec_16)_RECOMPETE.pdf

Solicitation: FA4890-16-R-0032 DRAFT - 5 Dec 16

APPENDIX F

REMOTELY PILOTED AIRCRAFT (RPA) OPERATIONS

AND MAINTENANCE AWARD FEE PLAN

1.0 INTRODUCTION.

1.1 This Plan describes the process that will be used to assess and determine the award fee earned by the Contractor. The objective is to motivate the Contractor to effectively improve performance in the rated areas stated herein and in the contract that 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/award fee earned. The Contractor’s earned Award Fee starts at zero at the beginning of each Award Fee Period and the Contractor earns Award Fee through superior performance that provides a tangible benefit to the Government. The Award Fee criteria consists of Quality, critical performance metrics, aircrew hiring and retention, and Warfighter Surveys. The Award Fee is evaluated and calculated using a combination of objective and subjective criterion designed to optimize contractor performance and incentivize continual process and program improvements throughout the life of the contract.

The performance element will be evaluated and calculated 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 RPA contract.

2.0 GENERAL PROCEDURES.

2.1 Evaluation Periods. Performance element evaluations will occur on a semi-annual basis.

Cost element determinations will occur annually. The periods are as follows:

Period 1 1 Apr 18 – 30 Sep 18 Period 8 1 Oct 21 – 31 Mar 22 Period 2 1 Oct 18 – 31 Mar 19 Period 9 1 Apr 22 – 30 Sep 22 Period 3 1 Apr 19 – 30 Sep 19 Period 10 1 Oct 22 – 31 Mar 23 Period 4 1 Oct 19 – 31 Mar 20 Period 11 1 Apr 23 – 30 Sep 23 Period 5 1 Apr 20 – 30 Sep 20 Period 12 1 Oct 23 – 31 Mar 24 Period 6 1 Oct 20 – 31 Mar 21 Period 13 1 Apr 24 – 30 Sep 24 Period 7 1 Apr 21 – 30 Sep 21 Period 14 1 Oct 24 – 31 Mar 25

2.2 Assessment and Payment Overview. The objective and subjective evaluation criteria and calculations as described in paragraph 3.0 Award Fee will be utilized to calculate the recommended fee for presentation to the Fee Determining Official (FDO). Periodic feedback will be provided by the Program Manager (PM) to the Contractor. The PM will present all semi-annual evaluation findings and preliminary results, to include objective criteria calculations and subjective criteria recommendations, to an Award Fee Review Board (AFRB) chaired by the Acquisition Management and Integration Center (AMIC) Director (DR) or Deputy Director (DD) for validation. The AFRB Chair shall recommend a total fee amount to the FDO who shall determine the final fee amount. Billing and payment of all earned fee will be made semi-annually after the contracting officer (CO) finalizes the task order modifications to incorporate the fee earned.

2.3 Procedures for Changing the Plan. Unilateral changes may be made to this plan if the

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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 contract modification between Government and Contractor. Any substantial changes to the plan must be approved by the AMIC/DD. Changes each period to the Special Interest Items (reference Paragraph 3.2.4) are not considered substantial.

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 prorate the Award Fee pool to reflect months in which work was performed. After termination for convenience, the remaining fee cannot be earned by the Contractor and, therefore, will not be paid.

2.5 Contractor Presentation. The Contractor will be provided the opportunity to make a presentation to the AFRB prior to the PM’s presentation to the board. The presentation shall be in a Contractor-determined format, limited to thirty minutes and may complement, but not duplicate inputs already submitted for consideration or any portion of the PM’s briefing.

3.0 AWARD FEE PROCEDURES.

3.1 Available Pool: The total Award Fee pool is determined by the Government and will be a flat amount based on a sliding scale of total contract value for the Contract Year in which the performance period is being evaluated. When contract modifications drive the total contract value across a threshold that changes the Award Fee Pool during a given 6-month evaluation period, the pool shall be prorated based on the number of calendar days in the period. The effective date of the proration shall be the same as the date on the SF Form 30, Block 16C for the contract modification that causes the proration. The Award Fee pool shall not exceed $2M semi-annually.

The available fee pool will be a unilateral decision of the Government. The Award Fee pool scale is as follows:

Contract Year Value 6-Month Award Fee Pool

a. Below $20M $400,000

b. $20M – Below $30M $500,000

c. $30M – Below $40M $700,000

d. $40M – Below $50M $900,000

e. $50M – Below $60M $1,100,000

f. $60M – Below $70M $1,300,000

g. $70M – Below $80M $1,500,000

h. $80M – Below $90M $1,700,000

i. $90M – Below $100M $1,900,000

j. Above $100M $2,000,000

3.2 Determination of Fee Earned: The Incentive/Award Fee will be based, as outlined below, on four (4) criteria: Quality (30%), Warfighter Servicing (30%), Aircrew Hiring and Retention (20%), and a Special Interest Item (SII) (15%), along with any considerations resulting from Positive Significant Incidents (PSI) and Negative Significant Incidents (NSI). The SII will be

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determined by the PM, and the Contractor will be notified IAW paragraph 2.3. If there is no SII assigned or SII criteria with a value of less than 20%, the uncommitted percentage will be reallocated to the Quality criteria. The overall fee determination will be calculated at the total contract level, considering performance on all awarded task orders.

3.2.1 Quality Criteria (includes Service Summary (SS) items & Quality Management System (QMS)) – 30%. The Quality portion of the Incentive/Award Fee will use a Quality Performance Index (QPI) where the Contractor can earn points for exceeding critical SS standards, for successfully executing the Contractor’s QMS to the benefit of the Government, and for contractor aircrew personnel successfully completing required training. The Contractor can earn up to twenty-four (24) points per period under the Quality Criteria: four (4) points per month as defined below with two (2) points available for SS and two (2) points for QMS sections of the QPI. The SS and QMS sections will be evaluated IAW the PWS SS and Appendix G.

3.2.1.1.1 A major nonconformance is defined as: A nonconformance that adversely impacts (or has the potential to) mission, safety of personnel and/or equipment, environment, performance (quality), schedule (delivery), and/or cost. Major nonconformances are communicated to the contractor by the CO using a Corrective Action Request (CAR). The date of the CAR (Block 3) determines the month in which the major non-conformance occurred.

3.2.1.2 For award fee purposes only any individual aircrew personnel who is removed from training for failing to meet performance standards will be considered the same as a major non-conformance regardless of whether the Government actually issues a CAR and shall be counted against the OCONUS sub-pool referenced in Para 3.2.1.4.

3.2.1.3 Critical Metrics Point Assignment Explanation (12 possible points).

Up to two (2) points will be awarded for each calendar month when all OCONUS sites for the applicable weapons system or LRE effort meet or exceed the basic service summary standard, and the average of those sites meet or exceed the following more critical standards. Critical standards will be considered individually against MQ-1, MQ-9, RQ-4, and the LRE effort as applicable. To account for months in which a given critical metric may not be available in a given month (Ex: no MQ-1 OCONUS work), the points earned in each category for this section shall be adjusted accordingly.

Standard MQ-1 MQ-9 RQ-4 LRE Mission Capable Rate 92% 90% N/A N/A Total Abort Rate 5% 3% 7% N/A Repeat/Recur Rate (see exception below) 3% 3% 2% N/A 12-Hour Fix Rate 87% 80% 70% N/A

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Exception: Repeats and recurs directly attributable to repair actions by another organization shall not be counted against the higher critical Repeat/Recur rate.

3.2.1.4 QMS Point Assignment Explanation (12 possible points).

The available pool for the QMS Point Assignment will be split into sub-pools as follows:

a. 75% of the available pool for OCONUS sites

b. 25% of the available pool for CONUS sites, and all program-level related issues.

For all sites:

One (1) point will be awarded to the applicable sub-pool for a calendar month when the Government does not issue a CAR or any individual aircrew personnel is not removed from training for failing to meet performance standards OR

Zero (0) points will be awarded to the applicable sub-pool for a calendar month during which the Government issues one (1) CAR or a single individual aircrew member is removed from training for failing to meet performance standards OR

One-half (1/2) point will be deducted from the applicable sub-pool for a calendar month during which the Government issues a total of two (2) CARs. Any individual aircrew member who is removed from training for failing to meet performance standards shall be considered the same as a CAR OR

One (1) point will be deducted from the applicable sub-pool for a calendar month during which the Government issues a total of three (3) or more CARs. Any individual aircrew member who is removed from training for failing to meet performance standards shall be considered the same as a CAR.

3.2.1.5 Quality Criteria Calculation. The overall QPI shall be calculated by dividing the Quality points earned by the Quality points available (24) during the period and multiplying the result by the available fee for this factor:

3.2.1.5.1 Formula.

(Points Awarded / Total Points Available) x Available Pool = Fee Amount Earned

3.2.1.5.2 Sample Calculation. Assumption: Available Fee pool = $2M

Contractor earns 18 of 24 available points:

Available Pool: $2M x 30% = $600K (18/24) x $700K = $450K

3.2.2 Warfighter Servicing Criteria – 30%. The following evaluations will be performed

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during each period:

3.2.2.1 Warfighter Servicing. The Warfighter Servicing calculation is based on the average score of surveys submitted rather than total points. The PM will complete a Warfighter Servicing (WS) Survey using the formats at Attachments 1A and 1B and obtain completed surveys from supported Maintenance Group Commanders, Operational Detachment Commanders, Squadron Commanders and other warfighter customers as deemed appropriate by the PM. The PM O-level maintenance surveys shall count as two separate surveys each when calculating the Warfighter Servicing score in order to provide more weight to the program-wide assessment vs. unit-level only perspective. The PM shall also complete an LRE Support survey that shall count as a single survey. The 432d Maintenance Group Commander will be offered the opportunity to complete one survey for Creech operations and a second survey assessing OCONUS sites. This second survey provides a global perspective for RPA support because of the influence the 432d Maintenance Group Commander carries on MQ-1 and MQ-9 RPA enterprise support. The overall score of each survey will be equal to the average value of the point value assigned to each question.

3.2.2.2 Warfighter Servicing Calculation. The overall score for this criterion will be computed by adding all Warfighter Survey Scores (WSS) and dividing the result by the total number of inputs. The resulting percentage will be multiplied by the available pool for this factor.

3.2.2.2.1 Formula.

Available Pool*[Sum of WSS / Count of WSS]/Highest Scale Rating = Fee Amount Earned

3.2.2.2.2 Sample Calculation. Assumption: Available pool = $2M

Available Pool: $2M x 30% = $600K Highest Possible Rating: 2 $600K x 1.1675 /2 = $350,250

3.2.3 Aircrew Hiring and Retention – 20%. Aircrew hiring and retention shall be based on the percentage of aircrew personnel not requiring Launch and Recovery Qualification Training (LRQT) prior to first deployment and personnel on their second or third deployments under this

Question 1 Question 2 Question 3 WSS Count Survey 1 Scores 1 2 1 1.33 1 Survey 2 Scores -1 0 1 0.00 1 Survey 3 Scores 2 2 1 1.67 1 Survey 4 Scores 2 2 1 1.67 1 Sum of WSS/Count of WSS = 4.67 / 4 =

Overall Average Rating = 1.1675

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contract. Personnel must have completed a minimum of 110 days of their scheduled deployment by the end of the applicable award fee period to receive consideration under this section. Personnel can earn credit for either not requiring LRQT or for multiple deployments, but shall not earn credit under both criteria. Aircrew members not deploying during the period are not considered in the calculations.

3.2.3.1 The number of crew members not requiring LRQT shall be divided by the total number of eligible crew members and the result multiplied by a factor of 1.3. The number of crew members with 2 or more deployments shall be divided by the total number of eligible crew members and multiplied by a factor of 1.1. The number of crew members with 3 or more deployments shall be divided by the total number of eligible crew members and multiplied by a factor of 1.2. The resulting percentage in each category shall be summed for a final overall percentage. The awarded percentage shall be capped at 100% of the available award fee pool for this section.

Sample Calculation: Assumption: 5 crews tasked; Available Pool = $2M

Total Crews # Crews

Crew % Multiplier

Crews not requiring training 1 0.2 1.3 26.00% Crews with 2 deployments 1 0.2 1.1 22.00% Crews with 3 deployments 1 0.2 1.2 24.00%

Overall % 72.00%

Available Pool: $2M x 20% = $400K 72% x $400K = $288K

3.2.4 SII Criteria – 20%. The PM may assign a SII for up to 20% of the total available pool prior to the beginning of the period. When identified, the SII is an area of performance that the Government deems critical and requires special attention. The SII is defined in Attachment 3 to this appendix.

3.2.4.1 Sample Calculation. Assumption: Available pool = $2M

Contractor received an Outstanding SII rating:

($2M x 20%) = $400,000 Fee earned for SII

3.2.5 Significant Incidents. In the event of any significant positive or negative incident that, in the opinion of the Government, was within the contractor’s control, the FDO may unilaterally modify up or down the amount of the total fee earned for the period without regard to Contractor performance in the areas scored. The fee will not be modified as a result of events that are outside the control of the Contractor.

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Positive Significant Incidents:

Examples include but are not limited to:

• Major innovations that significantly improved weapon system capabilities or provided vast savings to the government.

Negative Significant Incidents:

Examples include but are not limited to:

• Serious damage/destruction to Government property as a result of the contractor’s actions.

• Serious, significant, and/or chronic management problems or performance problems that can be reasonably attributed to a general lack of Contractor management oversight in areas not necessarily delineated in the Incentive/Award Fee evaluation criteria.

3.2.5.1 If the cause of a NSI (i.e., aircraft mishap, etc.) is determined to be a Contractor responsibility after the period in which the event occurred, then the Government can consider the finding in the period during which the responsibility determination was made or if no formal determination is or will be made, when the investigation is closed. The AFRB should consider if any action was already taken in regard to the NSI. The Government will ensure the contractor is aware of any NSI that will be reviewed by the AFRB.

3.2.5.2 The Government may submit an unlimited number of PSI/NSIs and the contractor may submit up to three PSIs during each six-month Incentive/Award Fee Period. Contractor-submitted PSIs must be submitted to the PM within 10 calendar days of the incident or the fifth (5th) calendar day following the end of a performance period, whichever comes first, using the format at Attachment 2. The PM will evaluate all PSI/NSI submissions with the assistance of Government functional representatives as required and make a recommendation to the AFRB regarding the impact of each submission. Contractor submissions must show a clear tangible benefit to the Government directly resulting from Contractor actions above and beyond normal operations. PSIs shall not drive the total award above 100% of the available Award Fee Pool for the 6-month period being evaluated.

3.3 Incentive/Award Fee Results. The AFRB will consist of 3 to 5 voting members identified in Attachment 4 to validate the proposed Incentive/Award Fee results. The PM will present the proposed results each period to the AFRB to ensure consistency and integrity in application of this plan. The AFRB will validate the PM’s inputs, recommendations, and calculations, and consider any PSI/NSI inputs prior to reaching a final consensus on a recommended fee amount. The Contractor may be present for the PM’s presentation and participate in discussions of the results.

The Contractor shall not be present during final AFRB deliberations and decisions on a recommendation to the FDO. The AFRB Chair will forward the recommended amount, rationale, and supporting documentation to the FDO for final approval. The AFRB may consult with

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functional area advisors who provide technical expertise and advice to the AFRB.

3.3.1 The FDO considers the AFRB recommendation, but is solely responsible for the final fee determination. If the FDO decision differs from the recommendation of the AFRB, the FDO shall document their decision rationale for the contract file. The final results for each period will not be closed until the FDO approves the final fee amount. The final determination is the unilateral decision of the Government. The FDO will provide the CO a written incentive/award fee decision and, barring unforeseen circumstances, the CO shall notify the Contractor of the final decision within 90 calendar days after the end of the period.

3.3.1.1 AFPEO/CM shall normally serve as the FDO, unless delegated to HQ ACC O-6 or higher (i.e. A4, A4-2, A7K, etc.). AFPEO/CM has delegated FDO responsibilities to HQ

ACC/A4.

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Attachment 1-A

Warfighter Servicing Survey (O-Level Maintenance Support)

Please answer the following questions using the ratings provided:

Communication

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, Group/Squadron CCs/leaders, other key personnel?

RATING:__________________________

Problem Solving

2. How well has the Contractor’s management team proactively identified upcoming issues, and aggressively pursued timely responses to Government issues to enhance organizational-level maintenance support and mission effectiveness?

RATING:__________________________

Quality of Maintenance and Mission Effectiveness

3. How well has the Contractor performed organizational-level maintenance services? Has the Contractor met your organization’s mission and flying program requirements?

RATING:__________________________

Rating Description Point Value*

Outstanding Contractor consistently exceeds mission requirements 2 Good Contractor occasionally exceeds mission requirements 1 Satisfactory Contractor meets mission requirements 0 Unsatisfactory Contractor fails to meet mission requirements -1

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

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Attachment 1-B

Warfighter Servicing Survey (LRE Support)

Please answer the following questions using the ratings provided:

Communication

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, Group/Squadron CCs/leaders, other key personnel?

RATING:__________________________

Problem Solving

2. How well has the contractor’s management team proactively identified upcoming issues, and aggressively pursued timely responses to Government issues to enhance launch and recovery element support and mission effectiveness?

RATING:__________________________

Quality of Maintenance and Mission Effectiveness

3. How well has the Contractor performed launch and recovery element services? Has the Contractor met your organization’s mission and flying program requirements?

RATING:__________________________

Rating Description Point Value*

Outstanding Contractor consistently exceeds mission requirements 2 Good Contractor occasionally exceeds mission requirements 1 Satisfactory Contractor meets mission requirements 0 Unsatisfactory Contractor fails to meet mission requirements -1

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

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Attachment 2

Contractor-Submitted Positive Significant Incidents

Fully describe the entire incident to include events that led to the occurrence.

IMPACT:

Provide specific impact of actions. Examples include, but are not limited to positive mission impacts, actual dollar savings or cost avoidance to the Government or other efficiencies provided to the Government’s advantage.

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Attachment 3

Special Interest Item

Section reserved. There is no SII currently assigned.

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Attachment 4

AFRB Members

Award Fee Review Board Voting Members

HQ ACC AMIC/DR or DD (Chairperson) 432 MXG/CC or CD, or 9 MXG/CC or CD, or ACC/A4I, or ACC/A5I

HQ ACC AMIC/PM

HQ ACC AMIC/PK or AMIC/PKC

HQ ACC AMIC/PMA

Note: AMIC/PM or AMIC/PK will serve as chairperson in the absence of AMIC/DR or DD.

Non-Voting Members / Advisors

HQ ACC/JA

HQ ACC/A3M

ACC AMIC/PMAU

ACC AMIC/PSU

ACC AMIC/DRQ

ACC AMIC/PSC

ACC AMIC/PLG

ACC AMIC/DRF

ACC AMIC/PCE

ACC AMIC/OL

ACC AMIC/PKCA

Fee Determining Official

AFPEO/CM or ACC/A4 as delegated by AFPEO/CM