Attachment_14_Performance_Incentive_Plan.pdf

Performance Incentive Plan (PIP)

1.0. INTRODUCTION

It has been determined that a Performance Incentive Plan is the best method of effectively enforcing the contract. An incentive reduction will be applied for any personnel shortfall, less than the minimum number of personnel identified in the Key Personnel Table below, for any period lasting more than thirty (30) consecutive calendar days (applied daily thereafter). A shortfall is defined as any member(s) that are not able to fulfill the required duties set forth by the PWS (i.e. not physically present, not able to perform duties, or does not have the necessary training/certification). This incentive provision is in addition to any other governmental rights contained in FAR 52.246-4, Inspection of Services clause. The contractor will be penalized and assessed based on the below direction.

2.0. PERFORMANCE INCENTIVE PROCEDURES

2.1. Reporting Periods.

Reporting periods shall be based on the period of performance in accordance with the structure of the contract line items (CLINs), not to exceed 31 calendar days. Performance Assessment Reports (PARs) shall be partnered with the end of the month invoice (i.e. when the contractor bills at the end of the performance month a PAR shall be submitted with the invoice). The PAR shall record the Key Personnel retention for the current reporting period and the one previous (i.e. a PAR will account for a total of 61 calendar days). In the event that a previous reporting period does not exist, the contractor will submit for the period being invoiced and state that no previous reporting period is available.

2.2. Key Personnel.

The incentive reduction, if assessment is put into action, shall be factored upon the key personnel categories (firefighters/PMs/etc.), and the Government shall withhold a calculated percentage based on the minimum required threshold that the contractor is required to sustain (see Key Personnel Chart below):

Key Personnel Table

Position Number Needed to Fulfill Requirement

Location Percentage Deduction per Position

Fire Chief 1 EAS 2% Fire Fighter 8 EAS 2% Fire Chief 1 WI 2%

Fire Fighter 8 WI 2% Fire Brigade 1 KS 2%

Physician Assistant (PA) 1 EAS 2% Nurse Practitioner or PA 1 EAS 2%

Medical Doctor 1 WI 2% Advanced EMT 1 WI 2%

Airfield Manager 1 EAS 2% Airfield Manager 1 WI 2%

Site Manager 1 EAS 2% Site Manager 1 WI 2% Site Manager 1 KS 2%

Security Guard 2 EAS 2% Key - EAS (Eareckson Air Station), WI (Wake Island Airfield), KS (King Salmon Airport)

Section J, Attachment 14

FA5215-17-R-9002

4/3/2017 1

2.3. Performance Assessment Report (PAR)

The contractor shall be required to submit a PAR to the CORs, which will verify the contractor’s key personnel minimum threshold requirement for the month being invoiced, before invoicing for any CLIN on the contract. The COR will verify the key personnel numbers and report to the PM and PCO prior to the contractor’s invoice being accepted. Should the report indicate that the contractor has not maintained the required minimum threshold of key personnel, according to the table above (for more than thirty (30) consecutive calendar days), then the Government will withhold a percentage of the payment for that invoice, and subsequent invoices until such time as the contractor again meets, or exceeds, the minimum threshold. Failure to maintain sufficient key personnel will also be reflected in the contractor’s CPARS report.

1. If the contractor does not report that they have fallen below the threshold, the PM, who approves/disapproves personnel entering and leaving the location(s), (WI/KS/EAS), will be able to verify the personnel discrepancy through the Site Arrival Notice requirement. The PM shall notify the PCO if this occurs in order to document the file.

2. If the contractor does not identify their shortfall in key personnel in a timely manner, the CORs will be able to identify through surveillances, and will report this in a Contract Action Report (CAR). The contractor shall be required to account for this shortfall in their PAR.

2.4. Calculation of Key Personnel Deduction.

a. Requirement. The contractor is required to maintain the number of Key Personnel listed in the table above. If the contractor falls below this requirement of Key Personnel for more than thirty (30) consecutive calendar days during a reporting period (this includes any carryover into the next reporting period), the Government shall deduct 2% at the end of the month from the FFP CLIN that is affected for each key personnel shortfall. An additional 2%, to total 4%, shall be deducted for any continuous shortfall past the initial deduction and continuing beyond sixty (60) consecutive calendar days of the contractor remaining below the minimum threshold for each key personnel shortfall. The 4% deduction of the FFP CLIN that is affected, by any shortfall lasting longer than sixty (60) consecutive calendar days, shall be deducted from each additional monthly invoice that the shortfall is not remedied. The deduction assessment is reset upon the contractor filling all required Key Personnel positions in accordance with the table above and Section J, Attachment 14, Paragraph 1.0. If at any time the contractor drops below the required threshold, after being reset, the process will start over again.

b. Formula. Key personnel requirement drops below required minimum threshold, identified in the table above (for more than thirty (30) consecutive calendar days), then the affected CLIN’s total payment is multiplied by .02 for each key personnel shortfall, to give the amount to be deducted from the CLIN’s invoice.

Initial Performance Assessment below Threshold: Key Personnel drops below requirement for more than thirty

(30) consecutive calendar days.

Affected CLIN (CLIN 0102) payment x .02 = ($) to be deducted

Performance Assessment continues below Threshold (in conjunction with Initial shortfall): Key Personnel shortfall continues beyond the initial reporting period and past sixty (60) consecutive calendar days.

Affected CLIN (CLIN 0102) payment x .04 = ($) to be deducted

c. Reset. Upon contractor’s ability to rectify the shortfall of Key Personnel, in accordance with the table above, then the thirty (30) consecutive calendar day counter will start over. This allows the contractor to invoice for the full amount without a deduction until such time that a shortfall situation, past thirty (30) consecutive calendar days reoccurs.

Section J, Attachment 14

4/3/2017 2

3.0. AIR STATION/AIRFIELD COSTS

3.1. Air Station/Airfield Requirement

If any shortfall in the key personnel threshold affects air station/airfield sustainment, or if the Government determines the air station/airfield must shut down for any failure on the contractor’s part to meet the PWS requirements, within the contractor’s control, then the Government will determine the amount that will be recouped from the contractor. The amount to be recouped will be based on the actual dollar amounts for the Government to mobilize/demobilize Government personnel and/or equipment required to re-open the air station/airfield, and sustain the air station/airfield until the Government determines the contractor is capable of sustaining the air station/airfield in accordance with the

PWS.

3.2. Hold-Harmless.

The contractor has the right to allow the Government to use any equipment necessary to sustain the Air Station/Airfield under a Hold-Harmless agreement. This agreement shall reduce the dollar amount the Government will assess toward the contractor during any period in which the air station/airfield is being operated by the Government. This shall ensure that the Government is released of any responsibility toward the equipment being utilized and shall guarantee that equipment costs will not be recouped from the contractor for any equipment the contractor allows the Government to utilize under the hold harmless agreement.

Section J, Attachment 14

4/3/2017 3