Appendix_E_T53_Incentive_Plan_20Feb20.docx

Appendix E – T53 Incentive Option Plan

INCENTIVE OPTIONS PLAN

FOR THE

OVERHAUL AND REPAIR OF T53-L-703 Engines

PREPARATION DATE: 20 Feb 20

PREPARATION ORGANIZATION:

AFLCMC/LPSC

TINKER AFB, OK

Incentive Option Determining Official (IODO) Approval of Incentive Plan:

Chief, Propulsion Sustainment Division

1. INTRODUCTION

a. This Incentive Options Plan describes the process for evaluating Contractor performance in earning the three year and two year incentive options for the T53-L-703, hereinafter referred to as T53, engine maintenance workload. The purpose of this plan is to outline the organization, procedures, and evaluation period for implementing the incentive option provisions of the contract.

b. The favorable consideration for award of the first Incentive Option will be reviewed at the beginning of the 3rd year of the basic period and shall be based on meeting Table 1 critical Service Summary (SS) Metrics (outlined below) for year two of the basic period. If satisfactory rating is gained, the Incentive Option Determining Official (IODO) may exercise the 1st three-year option. If rating is unsatisfactory, the 2nd two-year option period will be lost. A second rating evaluation will be conducted at the beginning of the 4th year of the basic period to either successfully gain or lose the 1st three-year option. Refer to below outlined incentive graph scenarios under item c. for gaining and losing options. Both rating evaluations shall be judged against the SS metrics outlined below in Table 1 and further defined in Section 4 – Criteria of this Incentive Plan.

Table 1 – SS Metrics:

Rated Area with Satisfactory achievement of Service Summary Metrics

SS-2 Completion of Deficiency Reports within Technical Order Timelines

SS-3 Accurate and timely submittal of data reports

SS-4 No more than 2 validated customer complaints per year

SS-5 Comply with designated turnaround time

c. Figures 1 and 2 below outline the timing of evaluation and treatment of incentive options. Evaluations will be made at the end of the 2nd and 3rd year of the basic period. The Government retains the right to exercise the incentive options or not regardless of rating.

Figure 1 – Evaluation Timing

Figure 2 – Incentive Option Scenarios

2. DEFINITION OF TERMS

a. Incentive Option Determining Official (IODO): The individual who makes the final determination as whether consideration for award of an incentive option has been earned by the Contractor. The IODO is AFLCMC/LPS Director or Deputy at Tinker AFB, OK. The decisions to consider award of an Incentive Option by the IODO are final and are not subject to FAR 52.233-1, Disputes. The three and two year incentive options set forth in the contract are the maximum amount of incentive options for which consideration for award can be earned over the entire contract performance period. The IODO shall have 60 workdays upon receipt of Government Team review of consideration package to make the final decision.

b. Quality Assurance Specialist(s) (QAS): The individual(s) within DCMA assigned to monitor the contractor’s performance on a continuing basis.

c. Program Manager (PM): The individual appointed to manage the T53 program under the contract.

d. Procurement Contracting Officer (PCO): An individual with the authority to enter, administer, and/or terminate contracts and make related determinations and findings.

e. Contract Specialist: The individual in the Contracting Office assigned to monitor the contract.

3. PROCEDURES

a. DCMA, Government PCO, and Government PM should be made aware of all users’ comments regarding the Contractor’s performance.

b. DCMA, PCO, and PM shall make periodic observations of the contractor’s performance in accordance with Table 1 SS Metrics. The periodic reviews will be used to identify any contractor deficiencies which will be communicated to the contractor via interim letter(s) as required, which addresses areas needing improvement. A letter may also be issued any time it is deemed necessary to highlight areas of Government concern. For each letter issued, the Contractor shall provide a written response within 15 calendar days from the date of the government notice. The response should set forth plans for increasing effectiveness in the areas addressed or explain why it is not feasible to do so.

c. Meeting SS Metrics across years 2 and 3 of the basic period ratings will be used to determine award of the incentive options. Basic year 1 shall be considered a grace period in which a mock review will be conducted at the beginning of year 2 as practice and in preparation for the official evaluation ratings to be performed for year 2 (1st evaluation at beginning of year 3) and year 3 (2nd evaluation at the beginning of year 4) of the contract basic period. The Government team shall prepare the annual Evaluation Summary Report (ESR) in the format shown in Appendix 1 and the Contractor shall prepare the ESR at Appendix 2 to assess the Contractor’s performance on a quarterly basis throughout the rating year period so that feedback / corrective actions may be applied to obtain a successful overall yearly rating. The report shall include significant ratings for each of the Service Summary Metrics listed in this plan. The Government and Contractor teams shall submit evaluations to the Government PCO within 15 workdays after the end of each quarter for checkpoint reviews with the official yearly evaluation for the period being evaluated to be submitted within 15 workdays after the beginning of years 3 and 4 respectively. The contractor’s yearly self-evaluation and the Government final rating shall be submitted to the IODO for final decision. The IODO shall consider the information presented along with any other pertinent information available and reach a decision within 60 workdays as to whether consideration for award of an incentive option has been earned. The IODO has the ability to also override the ESR in determination of incentive option award.

d. Within 5 working days after the IODO decision, the PCO shall issue a letter notifying the Contractor of the decision. This letter will address the results of the evaluation and the key factors in the evaluation, noting any areas that did not meet the satisfactory rating for the evaluation period. Even if the PCO’s notification letter states that favorable consideration for award of incentive options have been earned, this notification does not constitute the exercise of incentive option(s) nor does such notification require the Government to exercise the incentive option(s). Exercise of any Incentive Option shall be at the discretion of the PCO, in accordance with FAR 17.207, and shall be executed by modification to the contract.

e. The IODO may unilaterally change this plan prior to the beginning of the evaluation period. In addition, the Contractor may recommend changes to the plan no later than 60 calendar days prior to the beginning of the evaluation period. The contractor shall be notified of changes to the plan by the PCO, in writing, before the start of the affected evaluation period. Changes to this plan that are applicable to the evaluation period will be incorporated by the mutual consent of both parties.

4. CRITERIA

a. To earn favorable consideration for award of Incentive Option(s), the Contractor must be evaluated favorably by the DCMA and Contracting Office to meet SS Metrics from years 2-3 of the basic period. The satisfactory rating shall be judged on meeting the described threshold for each SS Metrics listed in Table 2 below. Failure to achieve the satisfactory rating for each SS Metric during the evaluation period will result in the Contractor not earning consideration for the incentive option(s), unless the IODO determines via other pertinent information that an incentive option will be awarded.

Table 2 – SS Metrics Defined

SURVEILLANCE

SS-3: The Contractor shall prepare accurate data deliverables and submit in a timely manner IAW with each CDRL’s delivery need date.

SS-5: The Contractor shall comply with the designated turn around times established in below paragraphs to Section 1.7.

APPENDIX 1 - T53 INCENTIVE OPTION PLAN

GOVERNMENT TEAM EVALUATION SUMMARY REPORT

NOTE: Report shall be conducted quarterly for feedback reviews / corrective actions within the rating period and as a yearly summary for the official rating period evaluation. The IODO will only sign the yearly report.

Contractor: _____________________________________________________________ Contract Number: __________________________ Lead Evaluator: _______________ Office Symbol: ____________________________ Phone: ______________________ Evaluation Period: _______________________________________________________

POSITIVE EVENTS OR FACTORS

Service Summary Metrics:

SS-2 Completion of Deficiency Reports within Technical Order timelines______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-3 Accurate and timely submittal of data reports_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-4 No more than 2 validated customer complaints per year__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-5 Comply with turnaround time__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

NEGATIVE EVENTS OR FACTORS

Service Summary Metrics:

SS-2 Completion of Deficiency Reports within Technical Order timelines______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-3 Accurate and timely submittal of data reports_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-4 No more than 2 validated customer complaints per year__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-5 Comply with turnaround time _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

COMMENTS

(Describe any factors that significantly influenced events noted above)

Lead Evaluator’s Signature: ____________________________ Date: __________________

Incentive Option Determining Official (IODO) Approval:

Chief, Propulsion Sustainment Division

APPENDIX 2 – T53 INCENTIVE OPTION PLAN

CONTRACTOR TEAM EVALUATION SUMMARY REPORT

NOTE: Report shall be conducted quarterly for feedback reviews / corrective actions within the rating period and as a yearly summary for the official rating period evaluation.

Contractor: ___________________________________________________________________ Contract Number: __________________________ Lead Evaluator: ____________________ Email: ____________________________________Phone: ____________________________ Evaluation Period:______________________________________________________________

POSITIVE EVENTS OR FACTORS

Service Summary Metrics:

SS-2 Completion of Deficiency Reports within Technical Order timelines______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-3 Accurate and timely submittal of data reports_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-4 No more than 2 validated customer complaints per year__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-5 Comply with turnaround time__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

NEGATIVE EVENTS OR FACTORS

Service Summary Metrics:

SS-2 Completion of Deficiency Reports within Technical Order timelines______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-3 Accurate and timely submittal of data reports_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-4 No more than 2 validated customer complaints per year__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SS-5 Comply with turnaround time__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

COMMENTS

(Describe any factors that significantly influenced events noted above)

Contractor Evaluator Signature: ___________________________ Date: __________________ image1.emf image2.emf