Schedule_Incentive_CLIN_0005.pdf

CLIN 0005

QUALITY AND 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 delivery o Critical and Major Request for Variance will require consideration from the contractor 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 delivery o Critical and Major Request for Variance will require consideration from the contractor on a case by case basis

- $1,000,000 will be deducted for each month delivery exceeds any monthly deadline stated above

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In ce n ti ve

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First Article Delivery (Months)

First Article Incentive Structure

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