Incentive_Fee_Attachment_CLIN_0005.docx

CLIN 0005

SCHEDULE INCENTIVE ATTACHMENT

In addition to the profit/fee set forth elsewhere in the contract, the Contractor may earn an additional amount of up to $17,000,000 for meeting appropriate performance and schedule metrics as determined through application of the objective criteria outlined below:

First Article (FA) Incentive: An incentive of $12,000,000 may be earned for a First Article delivered within 24 months after contract award. Deductions will be calculated based on calendar months and open issues without approved corrective action as follows:

· $100,000 will be deducted for every issue without approved corrective action at FA delivery

· Request for Variance will be approved or deductions calculated on a case by case basis

· $1,000,000 will be deducted for each month delivery exceeds the 24 month incentivized schedule Low Rate Initial Production (LRIP) Incentive: An incentive of $5,000,000 may be earned for LRIPs delivered after FA as follows:

· LRIP 1 delivery = FA + 3 months

· LRIP 2 delivery = FA + 5 months

· LRIP 3 delivery = FA + 7 months Deductions will be calculated based on calendar months and open issues without approved corrective action as follows:

· $100,000 will be deducted for every issue without approved corrective action at LRIP 3 delivery

· Request for Variance will be approved or deductions calculated on a case by case basis

· $1,000,000 will be deducted for each month delivery exceeds any monthly deadline stated above The incentive fee will be based on delivery date.