Draft AT Performance Incentive-Award Fee Plan 1Jun21.docx

DRAFT AERIAL TARGETS

PERFORMANCE INCENTIVE AWARD FEE PLAN

Solicitation FA4890-21-R-0012

ATTACHMENT 3

1.1 INTRODUCTION.

1.2 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 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 award fee earned. It consists of four (4) main criteria: Service Summary, Quality of Services, Program Manager (PM) evaluation, and Special Interest Item (SII). Additionally, Positive Significant Incidents (PSIs), Negative Significant Incidents (NSIs), and mission partner feedback will be considered. Performance is evaluated and award fee calculated using a combination of objective and subjective criterion designed to optimize contractor performance and incentivize process and program improvements throughout the life of the contract. Objective and subjective elements will be evaluated separately and calculated on a semi-annual basis. The results will be used in conjunction with the yearly Contractor Performance Assessment Reporting System assessment to provide a complete program assessment of the Contractor’s performance on the Aerial Targets contract.

2.0 GENERAL PROCEDURES.

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

AFRB Evaluation Periods

(*Period 15 applicable if 6-month extension is exercised)

2.2 Assessment and Payment Overview. The objective and subjective evaluation criteria and calculations as described in paragraph 3.0 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, 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 (Deputy Director PM/PK may serve as alternate Chairpersons). The AFRB Chair shall recommend a total fee amount to the FDO who shall approve the final fee amount. Billing and payment of all earned fee will be made semi-annually against CLIN X009 for the first 6-month period of each contract year and CLIN X010 for the second 6-month period after the contracting officer (CO) finalizes a contract modification to incorporate the fee earned. An AFRB will not be convened when the contractor’s performance is deemed “unacceptable” for award fee consideration by the AFRB Chair and approved by the FDO.

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 fifteen (15) days before the start of the upcoming evaluation period. If less than fifteen (15) days, then changes may be by a bilateral contract modification between Government and Contractor. Changes affecting the current evaluation period will also 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 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. If contract is terminated for default, the AFRB will not be convened.

2.5 Contractor Presentation. The Contractor will be provided the opportunity to make an optional presentation to the AFRB prior to the PM’s presentation to the board. The presentation shall be in MS PowerPoint, limited to thirty minutes, and focus on specific accomplishments over and above contract requirements that improves processes/quality, saves money, or increases customer satisfaction.

3.0 AWARD FEE PROCEDURES.

3.1 Available Award Fee Pool. The fee available each period will be determined by the contract at CLIN X009/X010. The available 6-month period of performance amount will typically be half of the annual amount and specified in the contract. Actual amounts earned during each evaluation period will be shown during the AFRB presentation.

3.2 Determination of Fee Earned: The Award Fee will be based on four (4) criteria: Service Summary (25%), Quality of Services (25%), PM Evaluation (25%), and SII (up to 25%). Mission partner feedback, PSIs, and NSIs will be included in the PM Evaluation. Negative Significant Incidents (NSI) may result in a reduction in overall award fee. The SII is determined by the PM, and the Contractor will be notified IAW paragraph 3.2.4. If there is no SII assigned or SII criteria with a value of less than 25% is assigned, the uncommitted percentage will be reallocated within PM Evaluation.

Formula: SS + Quality of Services + PM Eval +/- SII) + PSI or – NSI = Total Fee

3.2.1 Service Summary (SS) criteria – 25%. The SS portion of the Award Fee will use a Quality Performance Index (QPI) where the Contractor can earn points for exceeding more critical SS standards, to the benefit of the Government. The Contractor can earn up to six (6) points per period under the SS Criteria:

3.2.1.1 Negative one-half (-1/2) point will be earned for a calendar month when the Government issues a CAR for failing any of the following SS performance standards (PWS Table 1.6). Two or more SS failures in a month will earn an additional negative one-half (-1/2) point for a total of negative one (-1) point.

· FSAT Mission Success Rate

· SSAT Mission Success Rate

· Tellabs Switch Operational Availability

· GRDCS Mission Availability

· Data and Communications Circuit Connectivity

· RCS/BC3 and Orion Comm Network Mission Availability

· TPS-75 Radar Mission Availability

3.2.1.2 One-quarter (1/4) of a point will be earned monthly for each critical Service Summary standard met listed below for up to a total of one (1) point when:

· The Government does not issue a CAR for failure to meet any of the SS standards identified above, AND

· Critical standard below is met or exceeded.

3.2.1.3 Formula. SS points x SS point value = SS fee earned

3.2.1.3.1 Sample Calculation. If total available pool = $400K

· SS point value: $100K (25% of pool)/6 points available = $16,666

· If contractor earns 5 of 6 available points

· SS award fee: 5 x $16,666 = $83,330

3.2.2 Quality of Services (QS) criteria – 25%. The Quality of Services portion of the Award Fee will use a Quality Performance Index (QPI) where the Contractor can earn points for exceeding Quality standards to the benefit of the Government. The Contractor can earn up to six (6) points per period under the Quality of Services criteria:

3.2.2.1 Negative one-half (-1/2) point will be earned when more than one (1) CAR is issued in a calendar month, OR a repeat CAR is issued from the previous 180 calendar days. A total of negative one (-1) point will be earned when three (3) or more CARs are issued in a calendar month.

3.2.2.2 Zero (0) points will be earned for a calendar month when the Government does not issue more than one (1) CAR and CAR is not a repeat from the previous 180 calendar days.

3.2.2.3 One (1) point will be earned for a calendar month when the Government does not issue any CARs.

3.2.2.4 CARs issued under SS criteria shall not be counted against the Contractor under QS criteria.

3.2.2.5 Formula. QS points x QS point value = QS fee earned

3.2.2.5.1 Sample Calculation. If total available pool = $400K

· QS point value: $100K (25% of pool)/6 points available = $16,666

· If contractor earns 5 of 6 available points

· QS award fee: 5 x $16,666 = $83,330

3.2.3 Government Program Manager Subjective Evaluation – 25%. The Government PM shall submit a written evaluation of the Contractor’s overall performance for each Award Fee Period to the AFRB. The PM may use any and all information available to include, but not limited to, customer survey feedback from mission partners, Service Summary metrics, significant incidents, Contractor performance that exceeded standards, and areas of concern. The evaluation may contain objective data, however, the evaluation remains subjective by design and intent. The Government recognizes that some information considered in the subjective evaluation may already be covered in other sections of the Award Fee Plan. The PM shall recommend the amount to be awarded under this section to the AFRB and the AFRB, in turn, will reach consensus on the awarded amount during deliberations.

3.2.3.1 O&M Services Customer Surveys. Feedback from mission partners is essential information for the PM during subjective evaluation of the Contractor’s performance.

53 WEG leaders shall complete a minimum of four (4) O&M Services customer surveys (Attachment 1) each performance period. Survey results will be incorporated into the PM Evaluation and provided to the AFRB.

3.2.4 Special Interest Item (SII) Criteria – Up to 25%. An SII is an item contained within the existing contract requirements the Government deems critical and/or requires special attention. The CO will notify the Contractor with written notice assigning an SII fifteen (15) days or more before the start of the next performance period. Evaluation criteria shall be included in the Notice as necessary. The Government may assign one or more SIIs during a performance period and the value will be equally divided unless specifically addressed in the Notice. If there is no SII assigned or SII criteria with a value of less than 25% is assigned, the uncommitted percentage will be reallocated within PM Evaluation.

3.2.4.1 SII Evaluation. CORs evaluate SII(s) based an assessment of criteria components contained in the SII. Calculation of the amount earned is based on the percentage of evaluated SII components passed. The number of evaluated SII components is based on complexity of the item or area inspected.

3.2.4.2 Sample Calculation. Assumption: Available pool is $400K $400K x 25% = $100K (amount available for SII) Contractor passes 8 of 10 evaluated components:

$100K x 80% = $80K fee awarded for SII

3.2.5 Significant Incidents. The CO shall notify the Contractor of any PSI(s) and NSI(s) being submitted to the AFRB for review. 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.

3.2.5.1 Positive Significant Incidents. Examples include but are not limited to:

· Significant support benefiting the Aerial Targets Program

· Process improvements/innovations that significantly improve mission/logistics support, aircraft availability, or provide cost savings/avoidance to the government.

3.2.5.2 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 Award Fee evaluation criteria.

3.2.5.3 The Government may submit an unlimited number of PSI/NSIs and the contractor may submit up to three (3) PSIs during each six-month 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 the Contractor’s actions.

3.2.5.4 If the cause of an 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.

3.2.5.5 Formula/Calculation. PSI/NSI

· PSI: PSI amount approved by FDO up to a maximum of available award fee pool

· NSI: NSI may reduce award fee amount as approved by FDO to include zero award

3.3 Award Fee Review Board Process. The AFRB will consist of 3 to 5 voting members identified in Attachment 3 to validate the proposed award fee results. The Contractor may provide an optional presentation to the AFRB in accordance with paragraph 2.5 above. The PM shall 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 PSI/NSI inputs prior to reaching a final consensus on a recommended fee amount. The Contractor shall not be present during AFRB deliberations. The AFRB Chair will forward recommended fee amount, rationale, and supporting documentation to the FDO for approval.

3.4 FDO Determination. 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. The final determination is the unilateral decision of the Government. The FDO will provide the CO a written 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.

3.4.1 AFPEO/CM has delegated FDO responsibilities to HQ ACC A5/8/9 or ACC A5/8/9-2 if General Officer (GO) or Senior Executive Service (SES) level.

DRAFT AERIAL TARGETS

Solicitation FA4890-21-R-0012

1 Jun 21

AERIAL TARGETS O&M SERVICES SURVEY

This survey provides the Program Manager and the Award Fee Review Board feedback used to evaluate the Contractor’s performance. Please rate and provide answers to the following questions:

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:

Responsiveness

2. How well has the Contractor’s management team aggressively pursued and provided timely response 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:

DRAFT AERIAL TARGETS

ATTACHMENT 1

POSITIVE OR NEGATIVE SIGNIFICANT INCIDENT FORMAT

CRITERIA AND SUBCRITERIA HEADING: (e.g. Management, Mission Support, Logistics Support, Process Improvement, Cost Savings/Avoidance)

ACTION: (Specifically state what, where, how, and why – must be detailed)

DATE (S): (Self-explanatory)

JUSTIFICATION: (Bullet format – state why the action was accomplished and how the action exceeded contract requirement; must be specific)

IMPACT: (Bullet format – state how this action will improve the program; at what level the action was incorporated, the resulting cost savings, increased aircraft availability, recurring gains, efficiencies, etc.; how did this action improve quality, safety, etc.)

OPR: (Name, Location, and Phone)

GOVERNMENT EVALUATION: (Validate PSI or NSI justification and impact to the Government – This section is to be completed by Government personnel only.)

DRAFT AERIAL TARGETS

PERFORMANCE INCENTIVE AWARD FEE PLAN

ATTACHMENT 2

AWARD FEE REVIEW BOARD MEMBERS

Voting Members

ACC AMIC/DR or DD (Chairperson) (Alternates AMIC PM/PK) 53 WEG/CC or 53 WEG/CD or 53 WEG/CDM or designated rep ACC/A5T or A5TT

ACC AMIC/PM

ACC AMIC/PK or AMIC/PKC

ACC AMIC/PMA

Non-Voting Members / Advisors

ACC/JA

ACC AMIC/DRF

ACC AMIC/DRQ

ACC AMIC/PCE

ACC AMIC/PLG

ACC AMIC/PSC

ACC AMIC/DRQA

ACC AMIC/PKCA

ACC AMIC/PMAO

ACC AMIC/OL

Fee Determining Official

AFPEO/CM or delegated to ACC A5/8/9 or ACC A5/8/9-2 (must be GO or SES).