Attachment_7_Performance_Incentive_Plan.docx

Performance Incentive Plan

1.0 Introduction

This plan describes the process for evaluating the Contractor's staffing and retention performance and the assessment of incentive fee based on the staffing requriements at each location identified in the Performance Work Statement. The Contractor has the opportunity to receive an incentive fee for exceeding 95% fill rate and/or no more that one vacancy at each location greater than 2-week gaps, whichever is greater. The specific criteria and procedures used for assessing the Contractor's performance and for assessing the incentive fee as described herein.

2.0 Responsibilities

Contracting Officer (CO): The CO is the Government representative responsible for total contract and program administration. The CO will review reports drafted and received by the Contracting Officer’s Representative and Program Manager. The CO will also serve as an advisory member.

Program Manager (PM): The PM is the Government representative responsible for total program performance. The PM advises and reports on recorded contractor performance to the CO. The PM will monitor, review and accept all written interim and end-of-period evaluation reports, and other related CDRL deliverables submitted by the COR and Contractor. The PM will serve as an advisory member on the Performance Incentive Fee Board.

Fee Determining Official (FDO): The FDO is the Government official responsible for application of incentive fee. The FDO will be the AFDW/PK Commander. The FDO will rely on final monthly contractor performance reports and recommendations received by the PM, CO, and COR during the reporting period to determine if any incentive fee. The PM, CO, and the COR will serve as advisory members to the FDO. The final determination for incentive fee shall be at the informed discretion of the FDO. The FDO will communicate to the Contractor and CO the amount of fee for that period of performance once the Award Fee Board has concluded.

Contracting Officer’s Representative (COR): The COR advises and reports on recorded contractor performance to the PM. The COR will monitor the Contractor’s performance and maintain written records of the Contractor's performance in their assigned evaluation areas to ensure a fair and accurate evaluation. CORs prepare and submit interim and end-of-period evaluation reports to the PM or as otherwise directed. The COR will also serve as an advisory member on the Performance Incentive Fee Board.

3.0 Award Fee Pool Determination

The available Incentive Fee Pool shall be no more than 2% of the current performance period’s contract value.

Task Force True North: Attachment 7 - Performance Incentive Plan – FA7014-17-R-1016

4.1 Performance Assessment Overview

The following paragraphs detail specific information regarding the performance evaluation periods and how the Government will implement incentive fee assessments.

4.2 Evaluation Period

Evaluation period(s) for the staffing fill rate will be conducted on a 6-month basis and begin after the period of performance for the contract begins. The 6-month intervals during the period of performance are established so that the Contractor is periodically informed of the quality of its performance and the areas where improvement is expected. Each evaluation period will cover 6 months of performance. There will be a total of 2 evaluations per year.

Evaluation period(s) for the retention fill rate will be conducted on a 12-month basis and begin after the period of performance for the contract begins. The 12-month intervals during the period of performance are established so that the Contractor and the Government can build a relationship and the health care provider can provide continuous care to their patient. There will be a total of one evaluation per year.

4.3 Incentive Fee Assessment

The COR will review the Contractor’s monthly performance reporting against the Performance Requirements and associated Performance Objectives. The COR will advise and report on recorded contractor monthly performance to the PM. The PM, CO, and COR will review the COR reports. The FDO will assess incentive fee on a semi-annual basis and annual basis. Any rollover of unearned award fee is prohibited.

The incentive fee will consist of the aggregate of the separate assessment of the Contractor’s FTE fill and retention rates as outlined in the Performance Scale and Table in paragraph 5.2 – 5.5. The incentive fee will be applied to the Incentive Fee CLIN for all FTE CLINs within the respective assessment period.

5.1 Application of Award Fee and Downward fee Examples

Example 1:

In July, after evaluation of the Contractor’s performance, the Government determines the Contractor had met 97% of the FTE Fill Rate for 6 months. The Government will assess a .5 % award incentive that will be added to the FFP Award Incentive CLIN at the end of the 6 month period.

Example 2:

In January, after evaluation of the Contractor’s performance, the Government determines the Contractor met only 60% of the FTE Retention Rate. A negative incentive may not be applied; however due to the risk and critical damage to the Government, the Contracting Officer may assess liquadated damages.

Performance Scale and Table

The following Incentive Scales and Figure 1 will be utilized on a monthly basis in assessing Contractor performance against defined Performance Objectives

Positive Incentive= up to 2% of contract value

- FTE Fill Rate

· Reported monthly, incentive determined every 6 months

· Potential Award twice a year

- FTE Retention Rate

· Reported monthly, incentive determined every 12 months

12 months

FTE FILL RATE TABLE

5.2 Incentive Fee Scale

· Excellent: If greater than 95% of all contract Full Time Equivalents (FTEs) are filled, then an award fee of .5% of all FTE CLINs will be added to the FFP Award Incentive CLIN at the end of the 6 month period.

· Satisfactory: If 95% of all contract FTEs are filled, then an award fee of 0% of all FTE CLINs will be added to the FFP Award Incentive CLIN at the end of the 6 month period.

FTE RETENTION RATE TABLE

5.3 Award Fee Scale

· Excellent: If greater than 95% of all contract Full Time Equivalents (FTEs) are retained, then an award fee of 1% of all FTE CLINs will be added to the FFP Award Incentive CLIN at the end of the 12-month period.

6.1 Contractor Performance Assessment Reporting System (CPARS) Assessment A Customer Survey/Complaint System will influence information entered into CPARS. The Performance Objectives are grouped into three applicable CPARS categories. The three categories are: 1. Technical, 2. Schedule/Timeliness, and 3. Management. The remaining categories described in FAR 42.1503(b)(2) will be used in the overall CPARS assessment, but will not be used within this Award Fee Plan.

· Should the Contractor receive three (3) or more validated customer surveys/complaints with regards to negative contract performance within any one quarter during the CPARS annual rating period, the Contractor will receive an overall CPARS rating no higher than “Marginal” in its respective category.

· In aggregate, should the Contractor receive four (4) or more validated customer surveys/complaints with regards to negative contract performance within the CPARS annual rating period, the Contractor will receive a CPARS rating no higher than “Marginal” in its respective category.

7.0 Excusable Deviations from Performance Objectives and Related Assessment The Prime Contractor and Sub-contractors, at any tier, shall not be liable for failing to meet Performance Objectives if a performance failure is caused by an occurrence beyond the reasonable control of the Prime Contractor and/or Sub-contractor and without its fault or negligence. Such occurrences include acts of God or the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, delays of common carriers and sanction Government delays; the Prime Contractor shall notify the CO of any such occurrences. Notification of any performance failure must occur within but no later than five calendar days from its occurrence. The Prime Contractor shall include details regarding the performance failure, its cause, and subsequent remedy or plan of action for remedy. The CO will review all details provided and determine if the situation will be deemed an excusable deviation from the Performance Objectives.

8.1 Performance Incentive Fee Board

This section describes the procedures for the Incentive Fee Board’s application of Performance Incentive Fee. The Performance Incentive Fee Board shall convene semi-annually to assess the incentive fee as applicable. The incentive fee will be applied prior to the last day of the convening month. The Performance Incentive Fee determination and the methodology for determining the award fee/downward fee is a unilateral decision made solely at the discretion of the Government and its appointed official.

8.2 Members of the Performance Award Fee Board

The Performance Award Fee Board shall consist of the following members:

· Fee Determining Official

· Program Manager

· Contracting Officer

· Contracting Officer Representative

8.3 Notification of FDO Determination

The CO will notify the Contractor of the Performance Incentive Fee Board’s final Award Fee decision within 3 business days of the FDO’s determination. The notification will be in writing and require the signature of the FDO, PM and the CO.

8.4 Administration of Incentive Fee

If the FDO assesses an incentive fee, the Contractor shall receive an official letter from the CO, authorizing the Contractor to invoice the stated incentive fee amount to the established incentive fee CLIN. If the Contractor meets all Performance Objectives, and no incentive fee or is assessed, the Contractor’s invoice shall be paid as submitted. Any modifications required will be issued semi-annually and prior to the last day of the convening month. In the event of any delays, the Government reserves the right to issue related contract modifications into the subsequent month or as soon as practicable.

8.5 Appeals

Any appeal to the Incentive Fee Board decision will be provided to the CO and adjudicated by the AFDW/PK Ombudsman. All appeals must be made in writing and provide substantiation to the disputed facts no later than 5 business days from written notification of the final FDO determination. The decision from the appeal authority will be the final decision.