Attachment_15_-_Performance_Incentive_Plan_Fairchild.docx

FAIRCHILD HELICOPTER MAINTENANCE SERVICES PERFORMANCE INCENTIVE PLAN

1.1 INTRODUCTION

1.2 Objective. The objective of this plan is to motivate the Contractor to consistently perform satisfactorily in areas of key importance related to UH-1N helicopter maintenance. This plan details the process that will be applied to calculate Performance Incentive Reductions (PIR) to be withheld from payment invoices when objective performance incentive thresholds are not met in the following areas described in PWS Section 3: Aircraft Availability, Monthly Maintenance Scheduling Effectiveness, Aircraft Technical Inspections, and Scheduled Program Management Inspections. Performance will be monitored continuously and assessed on a monthly basis for Aircraft Availability and Monthly Maintenance Scheduling Effectiveness, and on a quarterly basis for Aircraft Technical Inspections and Scheduled Program Management Inspections. PIR results may be addressed in Contractor Performance Assessment Report System (CPARS) assessments.

2.1 GENERAL PROCEDURES

2.2 Evaluation Periods. Evaluations will occur daily, monthly, and/or quarterly, as applicable. However, PIR will be calculated and applied on a quarterly basis. The PI evaluation periods are as follows:

2.3 Assessment and Payment Overview. The performance criteria described in PWS Section 3 and paragraph 3.1 Performance Incentive Procedures of this document will be utilized. Results will be considered on a “pass/fail” basis for each respective measurement threshold. The Chief Contracting Officer Representative (COR) will present all quarterly performance evaluations and PIR calculations to the Functional Commander (FC) for validation. The final PIR determination is the unilateral decision of the Government. The CO will inform the Contractor in writing of the PIR amount assessed and the total amount the contractor may invoice for CLIN X001. The CO will provide this notice within 10 business days after the close of the PI evaluation period. The PIR will be applied to contractor invoices on a quarterly basis and one month in arrears. For example, Quarter 3 PIR will consider performance occurring April – June and any withhold will be implemented on the July invoice.

2.4 Procedures for Changing the Plan. Administrative changes to this plan (dates, validation process, etc.) may be executed unilaterally via letter signed by the CO no less than 15 calendar days prior to the start of the affected evaluation period. Otherwise, changes will require a bilateral agreement between the Government and Contractor. All changes to incentivized performance thresholds require a PWS revision and bilateral agreement between the Government and Contractor.

2.5 Contract Termination. If the contract is Terminated for Convenience of the Government during an active evaluation period, the standard evaluation process will apply on a prorated basis for the reduced period. Inclusion and implementation of this plan does not limit the Government’s rights to execute Termination for Default actions as authorized by contract clause 52.249-8, Default (Fixed-Price Supply and Service) or any other authority provided by the terms and conditions of the contract.

3.1 PERFORMANCE INCENTIVE PROCEDURES.

3.1.1 PIR Table: The PI applies 1% reductions for substandard performance in the Performance Measurement Areas identified below:

Aircraft Availability (AA)

UH-1N

*The AA Target is computed using the Primary Aircraft Inventory (PAI) multiplied by the most current AETC Mission Capable (MC) standard (updated annually). The AA Targets for each MDS will be provided to the contractor prior to entry of each option year by 19AF/LG. The AA computation formula is detailed in the PWS, paragraph 3.14.1.2.

3.1.2 PIR Formulas.

Aircraft Availability – UH-1N: PIR = 1% x CLIN X001 Aircraft Technical Inspections: PIR = (CLIN X001 x 3mo) x 1% Scheduled Program Management Inspections: PIR = (CLIN X001 x 3mo) x 1% Monthly Maintenance Scheduling Effectiveness – UH-1N: PIR = 1% x CLIN X001

3.1.3 Sample Calculation.

Assume the following:

* Values are notionally assigned for illustrative purposes only.

Example Earned Performance Incentive calculations:

· 1st Qtr FY21 Performance: Contractor achieved all thresholds with the exception of performing at only 83% on Aircraft Technical Inspections for the quarter.

· 1st Qtr PIR:

Aircraft Technical Inspections: ($25,000 x 3mo) x 1% = $750

· Jan 2021 Invoice reduction as submitted on 1 Feb 21:

CLIN X001: $25,000 - $750 = $24,250

· Therefore, contractor may invoice for $24,250 on CLIN X001

· 2nd Qtr Performance: Contractor achieved all thresholds with the exception of performing only 94% on Monthly Maintenance Scheduling Effectiveness – UH-1N in Jan 18 and only 79% on Scheduled Program Management Inspections for the quarter.

· 2nd Qtr PIR:

· Monthly Maintenance Scheduling Effectiveness – UH-1N (CLIN X001): $25,000 x 1% = $250

· Scheduled Program Management Inspections CLIN X001 : ($25,000 x 3mo) x 1% = $750 per CLIN

· Apr 2021 Invoice reduction as submitted on 2 May 21:

CLIN X001: $25,000 - $250 - $750 = $24,000

· Therefore, contractor may invoice for $24,000 on CLIN X001

3.2 Determination of Achieved Performance: Contractor performance will be monitored and evaluated continuously. Performance measurements and thresholds are objective in nature and will be calculated at the end of the incentivized period. Should the contractor wish to contend the performance calculations and/or the PI determination are in error, the contractor shall notify and provide substantiating documentation to the CO within three business days.