Sec_J_Attch_8_IWRP_Incentive_Fee_Plan__24_Feb_14.docx

INSTRUMENTATION WAFER REPLACEMENT PROGRAM

INCENTIVE FEE PLAN

FOR

GUIDANCE SUBSYSTEM

SUPPORT CONTRACT

24 February 2014

Approved:

DARYL J. HAUCK, Brig Gen, USAF

AFLCMC/SS

Fee Determining Official

Table of Contents

Section

Page

INTRODUCTION

PRODUCTION INCENTIVE TABLES

I

I

INSTRUMENTATION WAFER REPLACEMENT PROGRAM

INCENTIVES

1.0 INTRODUCTION

This document outlines the Instrumentation Wafer Replacement Program (IWRP) Incentive Plan.

TMRR / EMD (Phase 1 & 2) Assumptions:

All completion dates will be based on the Integrated Master Schedule (IMS). Changes to Integrated Master Schedule shall be made bi-laterally between the Government and IWRP Contractor. Incentive dates will be determined based on the most recently agreed upon IMS.

Completion of Phase 1 - Technology Maturation and Risk Reduction (TMRR) and Phase 2 – Engineering, Manufacturing, and Development (EMD) will be determined solely by the IWRP Government Program Manager based on closure criteria for phases 1 and 2.

Production (Phase 3) Assumptions:

Final calculated fee amount will be made based on the final determined unit price.

Acceptance Test Procedure (ATP) criteria will be developed and finalized during development.

Conditions:

· Development Incentives

· Performance/delivery incentives and negative incentives shall be calculated as a percentage of the proposed and accepted target cost.

· All performance/delivery incentives paid shall not increase the fee above the stated maximum of target cost when taking into account existing Incentive Fee cost sharing arrangements.

· If the pessimistic cost is exceeded and minimum fee is reached on the basis of cost the contractor will be ineligible for any performance or delivery incentive and minimum fee will be reduced by any performance incentives previously paid.

· Negative Delivery/Performance incentives will first reduce any unpaid performance/delivery incentives earned on the given CLIN, after these are exhausted they may reduce the contractor’s fee, but shall not reduce it below 0%.

· The contractor shall identify delays/impediments to performance it asserts should be excluded from the calculation of the performance/delivery incentive to the contracting officer in writing within 2 business days of when the contractor knew or should have known of its occurrence. The contracting officer has the sole discretion to adjust the performance/delivery incentive calculation for delays/impediments asserted by the contractor.

· All timeframes will be based upon the negotiated IMS. The government may choose to base performance/delivery incentives on the negotiated IMS even if the government’s need-date and associated time-frame changes (except for agreed to delays or impediments to the contractor above).

· Production Incentives

· Performance/Delivery incentives will be calculated as a percentage of the proposed and accepted CLIN price.

· The contractor shall identify delays/impediments to performance it asserts should be excluded from the calculation of the performance/delivery incentive to the contracting officer in writing within 2 business days of when the contractor knew or should have known of its occurrence. The contracting officer has the sole discretion to adjust the performance/delivery incentive calculation for delays/impediments asserted by the contractor.

· All timeframes will be based upon the negotiated IMS. The government may choose to base performance/delivery incentives on the negotiated IMS even if the government’s need-date and associated time-frame changes (except for agreed to delays or impediments to the contractor above).

2.0 PRODUCTION INCENTIVE TABLES

EMD Phase Early Delivery of Prototypes (Systems/Subsystems)

Threshold: Meet Accepted Schedule Objective: > or = 180 Calendar Days prior to Accepted Schedule

Meet Objective:

+ 1% of CLIN target cost 90-179 Calendar Days prior to Accepted Schedule: + .75% of CLIN target cost 60-89 Calendar Days prior to Accepted Schedule: + .50% of CLIN target cost 30-59 Calendar Days prior to Accepted Schedule: + .25% of CLIN target cost

1-30 Calendar Days after Accepted Schedule: - .25% of CLIN target cost 31-59 Calendar Days after Accepted Schedule: - .50% of CLIN target cost 60-90 Calendar Days after Accepted Schedule: -1% of CLIN target cost Greater than 90 Days after Accepted Schedule: -1% of CLIN target cost Per each 30 Calendar Day slip

EMD Phase CDR Closure

Threshold: Meet Accepted Schedule Objective: > or = 180 Calendar Days prior to Accepted Schedule

Meet Objective:

+ 1% of CLIN target cost 90-179 Calendar Days prior to Accepted Schedule: + .75% of CLIN target cost

1-30 Calendar Days after Accepted Schedule: - .25% of CLIN target cost

60-90 Calendar Days after Accepted Schedule: -1% of CLIN target cost Greater than 90 Days after Accepted Schedule: -1% of CLIN target cost Per each 30 Calendar Day slip

EMD Phase Early Delivery of LRIP

Threshold: Meet Accepted Schedule Objective: > or = 180 Calendar Days prior to Accepted Schedule

Meet Objective:

+ 2% of CLIN target cost 90-179 Calendar Days prior to Accepted Schedule: + 1% of CLIN target cost

1-30 Calendar Days after Accepted Schedule: - .25% of CLIN target cost

60-90 Calendar Days after Accepted Schedule: -1% of CLIN target cost Greater than 90 Days after Accepted Schedule: -1% of CLIN target cost Per each 30 Calendar Day slip

Production Phase ATP final checkout:

Pre-flight checkouts

Objective 1: Deliver a complete, ATP’d ( includes 30th Space Wing testing for Range Tracking System & Flight Termination System components ) IWRP flight test kit 179-150 days prior to scheduled MM III Launch (as determined by the AFGSC 5-Year Forecast) Objective 2: Deliver a complete, ATP’d ( includes 30th Space Wing testing for Range Tracking System & Flight Termination System components ) IWRP flight test kit 149-120 days prior to scheduled MM III Launch (as determined by the AFGSC 5-Year Forecast)

Meet Objective 1:

+ 10% to total unit price Meet Objective 2:

+5% to total unit price

89-60 Days prior to scheduled MM III Launch (as determined by the AFGSC 5-Year Forecast): -10% of total unit price deducted Less than 59 Days prior to scheduled MM III Launch (as determined by the AFGSC 5-Year Forecast): -20% total unit price deducted