Attachment_12_C-12_Incentive_Plan_Rev01.pdf

PERFORMANCE INCENTIVE DOCUMENT

FOR

C-12 CONTRACTOR LOGISTICS SUPPORT (CLS) SERVICES

14 NOVEMBER 2024

Table of Contents

Section Title Page 1 Introduction 3 2 Responsibilities 3 3 Incentive Processes 3 4 Performance Incentive Document Change Procedure 4 5 Contract Termination 4

Page

Annex Title 5 1 Incentives Available for Evaluation Periods

Performance Incentive Document (PID)

1. INTRODUCTION

This PID is the basis for the C-12 CLS Services Contract evaluation of the contractor’s performance and for determining the amount of incentive earned by contractor. It describes specific criteria and procedures used to assess the contractor’s performance and to determine the amount of incentive earned. Actual incentive determinations and the methodology for determining incentive are unilateral decisions made solely at the discretion of the government; however, the determination is subject to the Disputes clause of the contract.

The incentive earned will be provided to the contractor through contract modifications and is in addition to the firm-fixed-price provisions of the contract. The incentive earned and payable will be determined by the Procuring Contracting Officer (PCO) based upon review of the contractor’s performance against the criteria set forth in this plan (Annex 1). The PCO may unilaterally change this plan prior to the beginning of a new evaluation period. The contractor will 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 a current evaluation period will be incorporated by mutual consent of both parties.

2. RESPONSIBILITIES

a. PCO: The PCO is the liaison between contractor and government personnel. The PCO maintains all records of the contractor’s performance, including, but not limited to, interim evaluations from all performance monitors, end-of-period evaluations from all performance monitors, PCO letters, and any other data requested. The PCO is the only individual authorized to monetarily obligate the government.

b. Program Manager (PM). The Government PM will maintain written records of the contractor’s performance in their assigned evaluation area(s) so that a fair and accurate evaluation is obtained. PMs will maintain delivery order tracking and provide data to the PCO for reconciliation.

PMs prepare interim and end-of-period evaluation reports as directed by the PCO and must provide justification for their ratings in the specific area(s) of responsibility.

3. INCENTIVE PROCESSES

a. Available Incentive Amount. The available incentive amount for each evaluation period (EP) is shown in Annex 1. The incentive earned will be paid based on the contractor’s performance during each evaluation period.

b. Evaluation Criteria. If the PCO does not give specific notice in writing to the contractor of any change to the evaluation criteria prior to the start of a the evaluation period, then the criteria will be used in the subsequent incentive evaluation period (Annex 1).

4. PERFORMANCE INCENTIVE DOCUMENT (PID) CHANGE PROCEDURE

The PCO, in coordination with the Requiring Activities, approves changes to the PID. Examples of significant changes include changing evaluation criteria, adjusting weights to redirect contractor’s emphasis to areas needing improvement, and revising the distribution of the incentive dollars. The contractor may recommend changes to the PCO no later than 60 days prior to the beginning of the new evaluation period. After approval, the PCO shall notify the contractor in writing of any change(s).

Unilateral changes may be made to the PID if the contractor is provided written notification by the PCO 60 days before the start of the upcoming evaluation period. Changes affecting the current evaluation period must be by mutual agreement of both parties.

5. CONTRACT TERMINATION

a. Termination for Convenience: In the event that the contract is terminated for the convenience of the Government (in accordance with Federal Acquisition Regulation (FAR) 52.249-2 Termination for Convenience of the contract), the amount of incentive to which the contractor is entitled shall be determined as follows:

(1) Incentive earned or earnable by the contractor for incentive evaluation periods completed prior to the effective date of the termination will not be affected by the termination.

(2) Incentive deemed earned and to be paid for performance during the period in which the termination becomes effective will be determined by the PCO in accordance with the approved Incentive criteria and will not be subject to negotiation as part of the equitable adjustment in accordance with the termination clause of the contract. For purposes of incentive determination, contractor performance evaluation will end as of the date of termination.

b. Termination for Default: If the government terminates this contract for default (in accordance with FAR 52.249-8 Termination for Default of the contract), the contractor shall not earn any incentive for the period in which the default occurred. Consequently, no additional incentive shall be paid during the termination settlement of the contract. Incentive earned or earnable by the contractor for incentive evaluation periods completed prior to the effective date of the termination will not be affected by the termination. Default on a delivery order (DO) does not affect incentive on subsequent or prior DOs.

ANNEX 1

Incentives Available for Evaluation Periods

1. Transition/Phase-In Incentive

The incentive earned by the contractor will be determined at the completion of evaluation periods shown below. The amounts shown are the available incentive that can be earned during that particular evaluation period.

Contract Transition/Phase-In Incentive Evaluation Period From To

1 (6 Months) Award Award + 6 months 2 (9 Months) Award Award + 9 months

The incentive available for Contract Transition/Phase-In is a total of $200,000 if a successful transition is accomplished within the first six (6) months or a total of $100,000 if a successful transition is accomplished within the first nine (9) months, and can be earned by meeting the following criteria for each evaluation period identified below.

a. Evaluation Period 6 Month Transition: The contractor shall meet or exceed all the performance criteria IAW the contract PWS for work performed during this evaluation period to remain eligible to receive this incentive. The Contractor shall provide monthly progress reports to the PCO/PM/ Engineer/Logistics Specialist, and ultimately provide proof of at the end of the evaluation period that all requirements IAW the PWS, paragraph 1.24.1 has been met. The PCO will review contractor’s submittal and make the final determination on the contractor’s eligibility to receive this incentive.

b. Evaluation Period 9 Month Transition: The contractor shall meet or exceed all the performance criteria IAW the contract PWS for work performed during this evaluation period to remain eligible to receive this incentive. The Contractor shall provide monthly progress reports to the PCO/PM/ Engineer/Logistics Specialist, and ultimately provide proof of at the end of the evaluation period that all requirements IAW the PWS, paragraph 1.24.1 has been met. The PCO will review contractor’s submittal and make the final determination on the contractor’s eligibility to receive this incentive

2. Quality Assurance Incentive

The quality assurance incentive earned by the contractor will be determined at the completion of evaluation period shown below. The amount shown is the available incentive that can be earned after that particular evaluation period.

Quality Assurance Incentive Evaluation Period From To

12 months Full Performance Start Full Performance Start + 12 months

a. Evaluation Period 12 months (Full Performance): If the contractor is able to maintain quality assurance with zero corrective action reports or quality escapes during the first 12 months of full performance period, the PCO will determine the contractor’s eligibility to receive an incentive of $500,000.