Section_J_-_Attachment_03_-_Award_Fee_Term_Plan.pdf

J-Tech II Award Fee / Term Plan

AWARD FEE / TERM PLAN

FOR

JOINT RANGE TECHNICAL

SERVICES (J-TECH II)

APPROVED:

J-TECH II AWARD FEE/TERM PLAN COORDINATION SHEET ONLY

i

TABLE OF CONTENTS

1 INTRODUCTION

2 ORGANIZATION, RESPONSIBILITIES, PROCEDURES, AND REVISIONS

2.1 ORGANIZATION

2.1.1 Fee/Term Determining Officials (F/TDOs)

2.1.2 Award Fee/Term Review Board (AF/TRB)

2.2 RESPONSIBILITIES

2.2.1 F/TDO

2.2.2 Award Fee/Term Review Board (AF/TRB)

2.2.3 Performance Monitors

2.2.4 J-Tech II Program Management Office (JPMO)

2.3 PROCEDURES

2.3.1 Use of Electronic Communications

2.3.2 Contractor Self-Assessment

2.3.3 Evaluation Process

2.3.4 Fee/Term Determination

2.3.5 Interim Evaluation Process

2.3.6 Revisions to the Plan

2.3.7 Contract Termination

3 AWARD FEE/TERM PERFORMANCE EVALUATIONS

3.1 SOURCE OF DATA FOR EVALUATIONS

3.1.1 Performance Reports

3.1.2 Contract Data Requirements List (CDRL)

3.1.3 Defense Contract Audit Agency (DCAA), Defense Contract Management Agency (DCMA) . 7 reports, and special audits/inspections

3.1.4 Contractor Inputs

3.1.5. Performance Requirements Summaries (PRS)

3.1.6 Other Data

3.2 AWARD FEE/TERM ALLOCATION

3.2.1 Award Fee Allocation

3.2.2 Award Term Allocation

3.3 AWARD FEE/TERM GRADES, PERFORMANCE CATEGORIES, AND CRITERIA

3.3.1 Award Fee/Term Grades

3.3.2 Award Fee/Term Grade Definitions

3.3.3 Evaluation Categories, Associated Criteria, and the Initial Percentages

3.3.4 Special Interest Category

3.4 AWARD FEE INTEGRITY

ATTACHMENT 1, AWARD FEE/TERM REVIEW BOARD

ATTACHMENT 2, END-OF-PERIOD EVALUATION REPORT

ATTACHMENT 3, PERFORMANCE FOLDER

ATTACHMENT 4, INDIVIDUAL PERFORMANCE MONITORING PLAN

ATTACHMENT 5, PERFORMANCE MANAGEMENT STRATEGIES

ATTACHMENT 6, MONTHLY PERFORMANCE MONITORING REPORT

ATTACHMENT 7, AWARD FEE/TERM ALLOCATION BY EVALUATION PERIOD

ATTACHMENT 8, AWARD FEE/TERM PAY-OUT CHART

ATTACHMENT 9, AWARD FEE APPLICATION CHART

ATTACHMENT 10, AWARD FEE/TERM GRADE DEFINITIONS

ATTACHMENT 11, AWARD FEE/TERM PERFORMANCE CATEGORIES

J-TECH II

AWARD FEE / TERM PLAN

1 INTRODUCTION

1.1 The objectives of this Award Fee/Term Plan (hereafter referred to as the “Plan”) are to: (1) motivate the contractor to improve performance in the rated areas, but not at the expense of minimally acceptable performance in all other areas and, (2) emphasize to the contractor key areas of management concern.

1.2 This Plan implements DFARS 252.216-7005 contained in the J-Tech II Contract and provides the basis for the monthly evaluation of the contractor’s performance and for presenting an assessment of that performance to the Fee/Term Determining Officials (F/TDOs) at the end of the 6-month rating period. This

Plan further implements DFARS 252.216–7004 (that includes DFARS Subpart 216.405-2-70) for Award Fee

Reduction or Denial for Jeopardizing the Health or Safety of Government Personnel, and AFI 63-138

(Acquisition of Services). The specific criteria and procedures described in this Plan are used to assess the contractor’s performance and to determine the amount of award fee and term points earned.

1.3 The award fee and award term will be provided to the contractor through unilateral contract modifications.

The award fee earned and payable, and award term earned, will be at the discretion of and determined by the

F/TDOs based upon a review of the contractor's performance against the criteria set forth in this Plan. When scoring the contractor’s performance, rating and scoring methods translate evaluation findings into recommended performance ratings. For award fee evaluation purposes, the evaluation team should work from the assumption that the contractor begins the evaluation period having earned 0 percent of the available award-fee and works its way up to the earned award fee amount assigned by the F/TDOs based on the quality of its performance during that evaluation period. Contractors do not begin with 100 percent of the available award fee and have deductions taken against that amount.

1.4 The award fee/award term incentives are intended to be motivational tools. The Award Fee/Term Review

Board (AF/TRB) and the F/TDOs shall not hesitate to use significant swings, positive or negative, in the rating from one period to another if performance changes. There is neither a requirement nor a presumption that the rating for a given period will become a baseline for the rating applicable to future periods.

2 ORGANIZATION, RESPONSIBILITIES, PROCEDURES, AND REVISIONS

2.1 ORGANIZATION

2.1.1 FEE/TERM DETERMINING OFFICIALS (F/TDOS)

The F/TDO position is jointly held by the Commander, Air Force Test Center (AFTC) Edwards AFB CA, the

Commander, Air Warfare Center (AWFC) Nellis AFB, and the Commander, Naval Air Warfare Center

Weapons Division (NAWCWD).

2.1.2 AWARD FEE/TERM REVIEW BOARD (AF/TRB)

2.1.2.1 The AF/TRB consists of the Chairperson (Program Manager), Procuring Contracting Officer (PCO), Recorder (Non-voting member), and representatives from the 412 Test Wing, Nevada Test and Training

Range (NTTR), Utah Test and Training Range (UTTR), and NAWCWD Ranges. The AF/TRB members, by position, are listed in Attachment 1.

2.1.2.2 In the event an AF/TRB member is unavailable to attend a board meeting, an alternate will attend in their place. The alternate shall have the same authority and responsibilities as the appointed member. All J-

Tech II partners will be represented at each meeting.

2.1.2.3 Technical and functional experts may serve in an advisory/consultant capacity. Experts serving in an advisory capacity will not serve as voting members of the AF/TRB. Consultants may be called from the Legal, Contracting, or Engineering offices, etc., as required.

2.1.3 PERFORMANCE MONITORS

2.1.3.1 Functional Area Chiefs (FAC). A FAC has been designated for each of the J-Tech II partner locations

( 412 Test Wing, NTTR (includes STTR), UTTR, NAWCWD, and the AFTC/JT). FACs evaluate and report contractor performance for their respective functional area to the AF/TRB. They are not members of the

AF/TRB. FACs, by position, are listed in Attachment 1.

2.1.3.2 Functional Area Evaluators (FAE). FAEs are Government representatives who monitor, evaluate, and report contractor performance to the FAC. They are nominated by their chain of command and designated in writing by the PCO and are not members of the AF/TRB.

2.1.3.3 Functional Specialists (FS). An individual skilled in a particular function performed by the contractor and responsible for providing input to the FAE. They are nominated by their chain of command and designated in writing by the PCO and are not members of the AF/TRB.

2.1.3.4 Performance Measurement Specialist / Quality Assurance Manager (QAM). An individual resident to the J-Tech II Program Management Office (JPMO), assigned to manage the overall contract Quality and performance processes, appointed by the PCO and is not a member of the AF/TRB.

2.2 RESPONSIBILITIES

2.2.1 F/TDO

The F/TDO is responsible for:

a. Approving this Plan and any significant changes/revisions.

b. Reviewing recommendations of the AF/TRB, considering all pertinent data and determining the earned award fee and/or award term points for each evaluation period. The F/TDOs may not authorize the rollover of fee; however, may allow an award term extension period to remain available in subsequent years.

c. Notifying the contractor in writing of the amount of the fee/term awarded for the evaluation period.

2.2.2 AWARD FEE/TERM REVIEW BOARD (AF/TRB)

2.2.2.1 Chairperson. The AF/TRB Chairperson is the J-Tech II Program Manager, who ensures that the

AF/TRB membership provides representation reflecting all functional areas and ensures that the contractor’s performance against the award fee/term criteria is evaluated in accordance with this Plan. The AF/TRB

Chairperson is responsible for:

a. Leading the AF/TRB meetings, to include reaching a final consensus.

b. Briefing the F/TDOs on the contractor’s overall performance and recommended earned-award fee/term amounts.

c. Recommending significant Award Fee/Term Plan changes to the F/TDOs.

2.2.2.2 AF/TRB. The AF/TRB is comprised of the J-Tech II Range Directors, Program Manager, and PCO;

they will convene at the direction of the AF/TRB Chairperson, and consider information submitted by the appropriate sources to arrive at an Award Fee/Term recommendation for presentation to the F/TDOs. The

AF/TRB is responsible for:

a. Evaluating the contractor’s overall performance for the award fee/term period using the FACs award fee evaluations, the contractor’s self-assessment, if any, and other pertinent information.

b. Arriving at an earned-award-fee/term recommendation to be presented to the F/TDOs.

c. Recommending changes to the Award Fee/Term Plan.

2.2.2.3 Procuring Contracting Officer. The PCO is a voting member of the AF/TRB and the liaison between the contractor and Government. In addition to the responsibilities as a voting member of the

AF/TRB, the PCO is responsible for the following:

a. Appointing the QAM, FACs, FAEs, and FSs

b. Transmitting F/TDOs letter to the contractor.

c. Preparing and distributing the contract modification awarding the fee/term.

d. Ensuring that the award fee amount is certified and administratively reserved.

e. Ensuring that all unearned award fee funds are de-committed after each evaluation period, as required.

f. Notifying the contractor in writing of any change(s) to the Award Fee/Term Plan, after F/TDOs approval as required.

g. Maintaining contract file documentation supporting the F/TDOs decision including Award

Fee/Term Evaluation Reports

2.2.2.4 Recorder. The recorder is a non-voting member of the AF/TRB and is responsible for:

a. Scheduling and facilitating AF/TRB meetings, including documenting and distributing minutes if required.

b. Receiving, processing and distributing evaluation inputs from all required sources.

c. Consolidating the FAC’s award fee assessments and recommendations for presentation to the

AF/TRB for each award fee/term period.

d. Consolidating the AF/TRB’s award fee and award term assessments and recommendations for presentation to the F/TDOs.

e. Maintaining the award fee/term files, including current copies of the Award Fee/Term Plan, any internal procedures, and any documentation having a bearing on the F/TDOs decision.

f. Notifying performance monitors that evaluations are due, and accomplishing other actions required to ensure the smooth operation of the award fee/term process.

2.2.3 PERFORMANCE MONITORS

FACs, FAEs, and FSs will observe and report on contractor performance IAW this Plan.

2.2.3.1 FAC. FACs monitor the contractor’s operations and provide award fee evaluations in accordance with this Plan. Each FAC is responsible for:

a. A functional area in which the contractor performs services.

b. Ensuring qualified personnel are appointed and trained as FAEs.

c. Meeting at least every month with FAEs and contractor counterparts to review and discuss FAE performance inputs.

d. Providing consolidated evaluation reports of the performance meetings to the JPMO by the 15th calendar day of the month.

e. Evaluating contractor performance for each award fee/term period based upon inputs from the

FAEs and the evaluation criteria of this Plan.

f. Providing Award Fee Evaluation Reports (Attachment 2) and briefing inputs to the AF/TRB recorder within 15 calendar days after completion of each award fee/term period.

g. Briefing contractor performance to the AF/TRB.

h. Bringing significant problems promptly to the attention of the Annex Range Director, Annex ACO, and PCO if applicable.

i. Ensuring they have a designation of authority letter on file from the PCO or Annex ACO, as appropriate.

NOTE: The Annex FAC and the Annex Range Director have the authority to require the FAE to accomplish some or all of the duties shown in paragraph 2.2.3.3. The delegation of specific responsibilities will be outlined in the letter of designation of authority.

2.2.3.2 FAE. FAEs are assigned to observe and document the contractor’s performance for specific areas.

Each FAE is responsible for:

a. Being familiar with the contract terms, conditions, Performance Work Statement (PWS), governing specifications, and the Award Fee/Term Plan.

b. Monitoring, evaluating, and reporting contractor performance.

c. Submitting a Monthly Performance Monitoring Report (consistent with the elements of

Attachment 5), by the 10th calendar day of the month, to the FAC for documenting and reporting contractor performance, including details of strengths, weaknesses, deficiencies, and any areas where the contractor does not meet contract requirements.

d. Meeting at least every month with contractor counterparts to discuss performance results.

e. Bringing significant problems promptly to the attention of the FAC, PCO and Annex ACO, if applicable.

f. Ensuring they have a letter of designation of authority on file from the PCO or Annex ACO, as appropriate.

g. Assigning FSs to observe and report contractor performance in assigned areas working with supervisors as appropriate.

2.2.3.3 FSs. FSs are skilled in a particular function performed by the contractor and are responsible for:

a. Being familiar with the contract terms, conditions, Performance Work Statement (PWS), governing specifications and the Award Fee/Term Plan.

b. Maintaining a complete performance folder (Attachment 3).

c. Developing an Individual Performance Monitoring Plan (Attachment 4) to provide guidelines for monitoring, evaluating, and reporting the contractor’s performance. The plan must be approved by the FAE and maintained in the Performance Folder.

d. Observing contractor performance, and providing current, accurate information and assessments.

e. Providing input to the FAE in accordance with the approved Performance Monitoring Plan.

f. Submitting Monthly Performance Monitoring Reports to the FAE by the 5th calendar day of the month.

g. Retaining a copy of the Monthly Performance Monitoring Report in the performance folder.

h. Ensuring they have a letter of designation of authority on file from the PCO or Annex ACO, as appropriate.

2.2.4 J-TECH II PROGRAM MANAGEMENT OFFICE (JPMO)

The responsibilities of the JPMO relative to this Plan are as follows:

a. Interfacing with the Performance Monitors on a periodic basis to review contractor performance.

b. Discussing contractor performance with the contractor Program Manager at least monthly.

c. Providing oversight /management of the award fee/term and performance processes and interpretation of regulations and directives.

d. Providing direction/assistance to all FACs, FAEs, and FSs to include developing performance plans, folders, and reports.

e. Assigning a Performance Measurement Specialist / Quality Assurance Manager (QAM).

f. Developing a training program for the award fee/term and performance processes and trains

FACs FAEs and FSs on the performance, surveillance, and the award fee/term processes.

g. Reviewing and analyzing all FAC performance reports for consistency and completeness.

h. Providing a report of all contract performance activity to the AF/TRB for review on a monthly basis.

2.3 PROCEDURES

2.3.1 USE OF ELECTRONIC COMMUNICATIONS

Electronic communications between members of the Government team and the contractor will be used to the maximum extent possible, including teleconferencing and electronic data exchange. Open access to technical performance and cost databases is to be implemented to facilitate insight into program activities.

2.3.2 CONTRACTOR SELF-ASSESSMENT

Within 5 calendar days after the end of each evaluation period, the contractor may submit a brief written

(page limit 30) self-assessment to include an informal briefing (not to exceed 30 minutes) to the AF/TRB and

F/TDOs at the scheduled meeting times. This written assessment of the contractor’s performance throughout the evaluation period may also contain any information that may be reasonably expected to assist the

AF/TRB in evaluating the contractor’s performance.

2.3.3 EVALUATION PROCESS

2.3.3.1 PERFORMANCE. FSs will monitor the contractor’s performance through one or more performance strategies and methodologies identified in Attachments 4 and 5 and submit a completed Monthly Performance

Monitoring Report (Attachment 6) by the 5 th calendar day of the month to the Functional Area Evaluator

(FAE). This report includes assessed performance as it relates to the performance thresholds set forth in the

Performance Requirements Summary (PRS) and verbally notify the contractor’s management of deficiencies as soon as they are identified. The FAE will meet with FSs and the contractor’s management monthly to discuss performance to include documented strengths, weaknesses, deficiencies, and areas of interest and forward a consolidated report consistent with the elements of Attachment 6 to the FAC by the 10 th calendar day of the month. The FAC will meet with the FAEs and contractor counterparts to review and discuss performance. A full report of assessed performance consistent with the elements of Attachment 6 will be provided to the JPMO by the 15 th calendar day of the month following the end of the evaluation period. After receipt and review, the JPMO will prepare and distribute a consolidated report to the AF/TRB and the contractor. This report provides both the AF/TRB and the contractor with the necessary performance feedback.

2.3.3.2 AWARD FEE/TERM. Each FAC will evaluate the contractor’s performance at their location and recommend their award fee score to the AF/TRB. FACs will use results of the monthly performance reports and meetings as source data for determining the end-of-period award fee and award term evaluation ratings.

The contractor’s performance will be rated in each performance category using the criteria and associated award fee/term scores. FACs will use the award fee and award term evaluation report forms shown in

Attachment 2 for recording the results of the evaluation. The AF/TRB Recorder notifies each FAC 30 calendar days before the end of the evaluation period when evaluations are due. Completed forms will be forwarded to the Recorder within 15 calendar days after the completion of each award fee/term period. The

Recorder will compile and distribute evaluation reports along with any other performance information to the

AF/TRB at least 7 calendar days prior to the scheduled board meeting.

2.3.4 FEE/TERM DETERMINATION

2.3.4.1 The AF/TRB will convene at a scheduled time and location within 30 calendar days after the end of an evaluation period. The AF/TRB will review the contractor’s written self-assessment and/or briefing, if presented. Following the contractor’s self-assessment briefing, the FACs will brief their evaluations of contractor performance, relative to Award Fee performance, and provide an award fee score for their functional area, to the AF/TRB. The AF/TRB may accept or modify/amend the recommendations of the FACs based on additional information or AF/TRB consensus. In addition to the functional area evaluations, the

AF/TRB will consider the contractor’s ability to meet the contract level Performance Requirements Summary

(PRS) performance thresholds and any other performance data available. After consideration of all evaluation data, the AF/TRB will arrive at a consensus award recommendation. The AF/TRB will then present the consensus award recommendation to the F/TDOs. The F/TDOs are the final authority to determine the overall rating and amount of award fee and award term points. Written minutes of the AF/TRB meeting and a final award fee/term determination will be provided to the PCO.

2.3.4.2 Within 45 calendar days after each evaluation period, the F/TDOs will advise the contractor and the

PCO, in writing, of the award decision and include an evaluation of the contractor’s performance as measured against the criteria. The notification also summarizes the contractor’s performance assessment, and identifies significant strengths, weaknesses, and deficiencies that influenced the decision.

2.3.4.3 Within 15 calendar days following publication of the F/TDOs decision, the PCO will issue a unilateral modification to the contract to authorize payment of the award fee earned. The contractor may then immediately submit a voucher for the entire award fee earned.

2.3.4.4 Upon the accumulation of sufficient award term points for an award term extension, the PCO will issue a unilateral modification, within 15 calendar days after the F/TDOs decision, authorizing the term extension earned, and converting the earned award term extension period to an option period subject to the clause at FAR 52.217-9.

2.3.5 INTERIM EVALUATION PROCESS

2.3.5.1 Due to the short duration of the award fee/term periods, there will be no formal interim evaluation at the mid-point; however, monthly performance feedback will be provided to the contractor.

2.3.5.2 Each FAC will meet at least every month with the FAEs and the contractor to discuss performance in their functional area. Each of the FACs will provide minutes/report of the meeting (consistent with the elements described in Attachment 6) to the JPMO, who in turn consolidates all FAC inputs and provides those inputs to the AF/TRB and the contractor’s Program Manager. These performance inputs will serve to facilitate the feedback meeting between the Government and Contractor Program Managers.

2.3.6 REVISIONS TO THE PLAN

2.3.6.1 Revisions to the Plan will be in accordance with contract clause AFMC FARS 5352.216-9003.

Administrative changes to this Plan may be made by the PCO without obtaining F/TDOs approval.

2.3.7 CONTRACT TERMINATION

If the contract is terminated for the convenience of the Government after the start of an award fee/term evaluation period, the award fee deemed earned for that period shall be determined by the F/TDOs using the normal award fee evaluation process. After termination for convenience, the remaining award fee amounts allocated to all subsequent award fee evaluation periods cannot be earned by the contractor and, therefore, shall not be paid. Award Term points will not be earned.

3 AWARD FEE/TERM PERFORMANCE EVALUATIONS

3.1 SOURCE OF DATA FOR EVALUATIONS

3.1.1 PERFORMANCE REPORTS

Monthly Performance Monitoring Reports submitted during the period.

3.1.2 CONTRACT DATA REQUIREMENTS LIST (CDRL)

Submissions and contractor reports received during the period.

3.1.3 DEFENSE CONTRACT AUDIT AGENCY (DCAA), DEFENSE CONTRACT MANAGEMENT AGENCY (DCMA)

REPORTS, AND SPECIAL AUDITS/INSPECTIONS

Results of any inspections or audits performed during the period.

3.1.4 CONTRACTOR INPUTS

Inputs provided by the contractor describing their performance in specific areas during the award fee period;

contractor briefings or self-evaluation reports.

3.1.5. PERFORMANCE REQUIREMENTS SUMMARIES (PRS)

Contract and annex-level Performance Requirements Summaries supporting or contained in the metrics

Dashboard).

3.1.6 OTHER DATA

Any other data provided in accordance with the contract, this Plan, or any other source.

3.2 AWARD FEE/TERM ALLOCATION

3.2.1 AWARD FEE ALLOCATION

3.2.1.1 The total award fee pool is broken out by evaluation periods as shown in Attachment 7. A percentage of the maximum available fee for each period by annex (refer to contract Schedule B contract line items for award fee pool by annex) will be paid to the contractor based on contract performance during the respective award fee period.

3.2.1.2 Each FAC will evaluate the contractor’s performance at their location and recommend their award fee score to the AF/TRB. The score is derived by applying a pre-determined formula to the performance rating points assigned. Each FAC will present their scores to the AF/TRB who will come to a consensus on an overall contract-wide enterprise award fee score. Attachment 8 depicts the percentage of award fee pool earned based on the enterprise level performance score. A graph of this relationship is shown in Attachment

9. Each annex will pay the enterprise-level percentage earned out of their award fee pool.

3.2.2 AWARD TERM ALLOCATION

3.2.2.1 The final enterprise-level score awarded by the F/TDOs will determine the award term points earned.

The available points for each evaluation period are shown in Attachment 7. Attachment 8 lists the award term points earned based on the performance score awarded by the F/TDOs. If any Annex rates the contractor performance as less than “Satisfactory”, the contractor will not be eligible to receive award term points for that period. An accumulation over the two evaluation periods within an option year period of 44 award term points is required for a one-year term option extension. Unearned award term points will not rollover from one period to the next. However, at the discretion of the F/TDOs, award term option extension periods may remain available in subsequent years.

3.3 AWARD FEE/TERM GRADES, PERFORMANCE CATEGORIES, AND CRITERIA

3.3.1 AWARD FEE/TERM GRADES

The following award fee/term grades will be applied to assess the contractor’s performance during an award fee/term period:

GRADE AWARD FEE PERCENT AWARD TERM

Excellent (90 - 100 points) 90 to 100 27 - 31 points

Very Good (80 - 89 points) 80 to 89 22 - 26 points

Satisfactory (70-79 points) 70 to 79 12 - 21 points

Unsatisfactory (0 - 69 points) 0 points

3.3.2 AWARD FEE/TERM GRADE DEFINITIONS

The award fee/term definitions describe, in general, the types of performance, which leads to the various ratings assessed by the FACs, and recommended by the AF/TRB to the F/TDOs. The grade-rating definitions in Attachment 10 and the award fee/term categories in Attachment 11 will be used in order to provide an assessment of the contractor’s performance and resultant award fee/term rating.

3.3.3 EVALUATION CATEGORIES, ASSOCIATED CRITERIA, AND THE INITIAL PERCENTAGES

The evaluation categories, associated criteria, and the initial percentages assigned are as follows. To note, all percentages are subject to change throughout the life of the contract through contract modifications.

CATEGORY Percent Weighting by Annex

CRITERIA

1 2 3 4 1 2 3 4

I Mission Capability

85 85 85 85

A Technical Performance

60 60 60 60

B Program Management

40 40 40 40

II Cost Mgt.

15 15 15 15

III Special Interest

3.3.4 SPECIAL INTEREST CATEGORY

During the life of the contract, the Government anticipates that it may want the contractor to devote special emphasis to subjects of particular interest to the Government. Contractor emphasis in these area(s) would be subject to award fee/term considerations;. Additionally, the weighting by annex may change to emphasize performance; however, no additional award fee will be added to the pool to cover these items.

3.4 AWARD FEE INTEGRITY

The award fee process is recognized to be subjective in nature, but every effort will be made to include objective criteria and to ensure fairness. Management and AF/TRB reviews have been incorporated into the process to ensure the award fee process is in accordance with AFMCFARS 5316.405-2 and this Plan.

ATTACHMENT 1, AWARD FEE/TERM REVIEW BOARD

Award Fee/Term Review Board Chairperson: Program Manager, AFTC/JT

Award Fee/Term Review Board Members

Procuring Contracting Officer

AFTC/PZSA Hill AFB

Director 412 TENG/CL 412 TW, Edwards AFB

Director NTTR/RS NTTR (includes STTR)

Director of Operations

Associate Director

UTTR/DO

NAWCWD/CL Ranges

UTTR

NAWCWD (Includes SR)

Recorder AFTC/JT AFTC

Functional Area Chiefs

QA Manager AFTC/JT AFTC

Deputy Director

412 TENG

412 TW, Edwards AFB

Deputy Director NTTR/RSD NTTR (includes STTR)

Contracts Administrator UTTR/DOL UTTR

Contracting Officer Representative

NAWCWD Ranges NAWCWD

ATTACHMENT 2, END-OF-PERIOD EVALUATION REPORT

AWARD FEE EVALUATION REPORT

Page ____ of ____

ANNEX: _________ PERIOD: ______________ DATE: ____________

Excellent (90-100) Very Good (80-89) Satisfactory (70-79) Unsatisfactory (0-69)

CRITERIA NARRATIVE SUBSTANTIATION

NUMERICAL RATING

I. Mission Capability Weight

Award Fee

Rating

Weighted

A. Technical Performance

60%

B. Program Management

40%

Total Composite Rating

TOTAL MISSION CAPABILITY

COMPOSITE RATING

Weight

Total

MISSION CAPABILITY 85%

AWARD FEE EVALUATION REPORT

Page ____ of ____

ANNEX: _________ PERIOD: ______________ DATE: _____________

Excellent (90-100) Very Good (80-89) Satisfactory (70-79) Unsatisfactory (0-69)

CRITERIA NARRATIVE SUBSTANTIATION

NUMERICAL RATING

Weight

II. Cost Management

15%

III. Special Interest

N/A

Total Composite Rating

TOTAL COMPOSITE RATING

MISSION CAPABILITY

COST

SPECIAL INTEREST

TOTAL WEIGHTED SCORE

EVALUATOR SIGNATURE

ATTACHMENT 3, PERFORMANCE FOLDER

The purpose of the Performance Folder is to have a central point to file and maintain numerous documents that contain important performance and contractual information. The Performance Folder may be retained electronically and contains as a minimum:

PCO or Annex ACO designation of authority letter, QAM appointment letter, Performance Monitor

Training Certificate, and Training Check sheet

PWS and any applicable CDRLs

Individual Performance Monitoring Plan

Monthly Performance Monitoring Reports

Award Fee/Term Plan

Other applicable documents and contractor correspondence

ATTACHMENT 4, INDIVIDUAL PERFORMANCE MONITORING PLAN

GENERAL: This Individual Performance Monitoring Plan establishes the procedures for monitoring, evaluating, and reporting the contractor’s performance by individuals at the FAE and FS level. Contract information, method of performance evaluation, performance report, review responsibilities, and reporting requirements, etc., are described below.

1. CONTRACTOR NAME:

2. CONTRACT INFORMATION:

Title: Joint Range Technical Services (J-Tech II) Contract

Contract Number:

Functional Area of Support:

- PWS Paragraph #:

CDRL Requirements (if applicable):

3. MONITORING: Method of Performance Evaluation

At least every month, performance will be evaluated by using one or more of the Performance

Management Strategies in Attachment 5 and one or more of the methods checked below. Check all that apply, or that may be used if deeper levels of scrutiny are required.

A. Performance by walk-through I. Review and analysis of technical reports (CDRL items included).

B. Regularly scheduled meetings J. Tracking of schedules, milestones, accomplishments, and cost reports C. Review of records and reports K. Personal observations of tests and work areas D. Review of standards, plans, procedures and contract for compliance L. Review of customer surveys

E. Random sampling M. Review of maintenance related activity

F. Review of project plans for technical adequacy

N. Contractor metrics

G. 100 Percent Inspections O. Third-party audits or assessments H. Trend analysis and tracking P. Other (i.e., Contractor Productivity, Technical Competence, Quality, etc.)

4. EVALUATING: PERFORMANCE REPORT

A Monthly Performance Monitoring Report will be completed by the 5 th calendar day of the month by the

FS. The Functional Area Evaluator (FAE) will consolidate all Monthly Performance Monitoring Reports for their area and forward their consolidated Monthly Performance Monitoring Report to the Functional Area

Chief (FAC) by the 10 th calendar day of the month.

ATTACHMENT 4, PERFORMANCE MONITORING PLAN, CONT’D

5. EVALUATION FACTORS: The contractor will be evaluated in the following areas (see Award Fee/Term

Grade Definitions listed in Attachment 10 of the J-Tech II Award Fee/Term Plan:

Technical Performance

Program Management

Cost Management

Special Interest (as applicable)

6. REPORTING/TIMELY FEEDBACK TO CONTRACTOR: The FAE will provide timely feedback regarding any deficiencies or substandard work for contractor corrective action. All corrective action will be documented in the Monthly Performance Monitoring Report.

7. PERFORMANCE MONITORING ACTIVITY: Contractor’s performance will be monitored and assessed using the methods shown in Paragraph 3 above. The report shall detail the strengths, weaknesses, deficiencies and any areas where the contractor does not meet contract requirements. A copy of the Monthly Performance Report will be retained in the Performance Folder. The contractor’s management chain of command will be used to report significant deficiencies, immediately upon discovery. All performance monitors are required to attend Performance Monitor Training before they are assigned as Performance Monitors, so they are familiar with contract and Government performance monitoring requirements.

8. Definitions:

Strength – An aspect of the contractor’s performance that has merit or exceeds contract requirements in a way that will be advantageous to the Government during contract performance.

Weakness – A flaw in the contractor’s performance that increases the risk of unsuccessful contract performance to an unacceptable level.

Deficiency – A failure of the contractor to meet a Government requirement.

PREPARED BY: APPROVED BY:

Name: Name:

Organization: Organization:

Phone: Phone:

Date: Date:

ATTACHMENT: Performance Requirements Summaries (if applicable)

ATTACHMENT 5, PERFORMANCE MANAGEMENT STRATEGIES

The following strategies will be used by Government performance evaluators in tandem with the 16 methods of surveillance contained in the Individual Performance Monitor Plan to aid in monitoring, evaluating, documenting, and reporting the contractor’s performance.

Insight

Insight is an assurance process that uses performance requirements and metrics to ensure process capability, product quality and end-item effectiveness to name a few. Insight relies on gathering a minimum set of product or process data that provides adequate visibility into the integrity of the product or process.

The data may be acquired from contractor records, usually in a non-intrusive parallel method for the

Government’s review. Insight as applied to each contract will result in lower levels of Government performance monitoring and allow the contractor to assume increased responsibility and accountability for the integrity of processes. Insight will rely heavily on evaluating planned contract deliverables and existing contractor processes, procedures and working documents. The Government’s goal is to follow an insight-driven performance-monitoring strategy; however, the Government reserves the right to use an oversight or hybrid approach (mentioned below) to monitor questionable areas, actual or perceived poor contractor performance.

Oversight

Oversight is an assurance process that uses customer-imposed product specification and process controls, such as MIL-Specs/Standards-type of mandatory inspections to direct the development and production of a product or process. Oversight is in-line involvement with an activity, principally through inspection, with review and approval authority implicit to the degree necessary to assure that a process or product’s key characteristics are stable and in control. As applied to each contract, the Government will strive to limit the use of oversight to significant problem areas or in which mission support may be impacted due to safety concerns, critical tasks, etc. The level and extent of oversight will be a function of the seriousness of the problem(s) discovered, and will be determined by the Government.

Hybrid

A hybrid performance monitoring approach combines elements of insight and oversight and may be levied upon the contractor’s ability to identify, manage and control programmatic risks. This may occur when a serious technical problem occurs, for example, with existing or new hardware that affects mission support, when new technology is acquired, or when the contractor employs unproven processes. In this situation, oversight performance monitoring is used selectively where required until sufficient data exist that demonstrate the contractor has all critical problems or processes under control. The oversight activities usually impose mandatory Government inspection points in series with the contractor’s processes. Only after the contractor’s demonstration of risk mitigation capabilities will the Government consider transitioning to insight activities that rely predominately on internal contractor data. The transition period from oversight to insight activities is hybrid and accomplished incrementally, depending on contractor performance.

ATTACHMENT 6, MONTHLY PERFORMANCE MONITORING REPORT

1. A consolidated Monthly Performance Monitoring Report is completed by each FAE by the 5 th calendar day of the month (See attachment 4 para 4.) for their specific area IAW this Plan. The purpose of the report is to document the results of the contractor's performance and provide documented and timely feedback to the contractor and Government representatives. FAEs evaluate the contractor’s performance, based on various inputs, and enter the results into the Monthly Performance Monitoring Report.

2. FAEs will prepare and submit Monthly Performance Monitoring Reports to the FAC by the 10 calendar day of the month. The final monthly report, for the award fee/term period will be submitted to the FAC by the th calendar day of the month after the end of the award fee/term period. After receipt of Monthly

Performance Monitoring Reports, the FAC will hold a meeting with the FAEs and contractor to discuss performance. The FAC will provide consolidated evaluation reports of the performance meeting to the JPMO by the 15 calendar day of the month.

3. Any special conditions, which may have influenced that month’s performance, will be described. Special conditions will consider the technical, economic, and schedule environment under which the contractor was required to perform and what effect it had on the contractor’s performance. The contractor shall not be held accountable for conditions that are outside their span of control.

4. The report will highlight the contractor’s performance relative to each of the award fee evaluation criteria.

It will include strengths, weaknesses, deficiencies, performance trends, areas requiring improvement, any areas that could result in potential negative impact to the program if not appropriately addressed, and notable achievements (areas where the contractor exceeded requirements; particularly if yielding cost, time, energy, or process related savings or efficiencies to the Government). Specific examples of contractor performance that substantiate the overall narrative are required. Contractor’s progress in showing demonstrated performance improvement from previous Monthly Performance Reports should be indicated.

MONTHLY PERFORMANCE MONITORING REPORT

Organization: Report Month:

FAE/FS (Name/Phone No): Date Submitted:

Name of Contractor Representative Notified:

PWS Para #: PWS Area of Support/Title:

Performance Assessment Rating:

SPECIAL CONDITIONS:

Describe any special conditions, which may have influenced contractor monthly performance. Special conditions may include aspects of the technical, economic, and schedule environment under which the contractor was required to perform and the effect they had on contractor performance.

CRITERIA:

Describe contractor performance relative to each of the award fee evaluation criteria (as applicable) using

Attachments 10 (Award Fee/Term Grade Definitions) and 11 (Award Fee/Term Performance Categories) of this Plan. Include strengths, weaknesses, deficiencies or areas where the contractor has failed to meet requirement, performance trends (i.e., worsening, steady, or improving), and any areas requiring improvement. Include specific examples of contractor performance that substantiate the overall narrative.

Under previous areas of concern, indicate the contractor’s progress in showing demonstrated performance improvement, as applicable, from previous Monthly Performance Monitoring Reports.

Technical Performance

Program Management (includes Personnel Attraction/Retention and Security)

Cost Management

Special Interest (as applicable)

NOTABLE ACHIEVEMENTS:

Briefly describe any areas where the contractor exceeded contract requirements; particularly if yielding cost, time, energy, or process related savings or efficiencies to the Government.

DEFICIENCIES:

Identify contractor performance deficiencies. Discuss any areas where repeated Government intervention was required, particularly if such intervention still failed to resolve the problem.

AREAS FOR IMPROVEMENT/PREVIOUS AREAS OF CONCERN:

Briefly describe any areas where the contractor’s performance needed improvement, follow-up, etc. Be specific; cite areas that could result in potential negative impact to program execution if not addressed.

Include specific examples of contractor performance that substantiate the overall performance assessment rating. Indicate the contractor’s progress in showing demonstrated performance improvements (as applicable) from previous Monthly Performance Monitoring Reports.

ATTACHMENT

Attach the Monthly Performance Requirements Summary, to include actual performance information and supporting data, to the Monthly Performance Monitoring Report.

ATTACHMENT 7, AWARD FEE/TERM ALLOCATION BY EVALUATION PERIOD

The award fee/term earned by the contractor will be determined at the completion of the evaluation periods shown below. The percentage and dollars shown corresponding to each period is the maximum available award fee amount that can be earned during that particular period. The award term points shown corresponding to each period are the maximum available award term amount that can be earned during that particular period.

The award term arrangement will continue using the designated evaluation periods during any additional years awarded up to a maximum of 15 years (plus the transition/phase-in period). For every year that the contractor fails to earn an award term extension period, the total length of the contract is reduced by one year

(i.e., if the contractor fails to earn one award term extension period, the award term arrangement will continue using the designated evaluation periods during any additional years awarded up to a maximum of 14, instead of 15, years, etc.). However, at the discretion of the F/TDOs, the contractor may be allowed to earn those extensions in subsequent years. If at any time after the end of option year two (2) of the contract, the performance period does not extend more than three (3) years from the F/TDOs decision, the operation of the award term feature will cease and the performance period will not extend beyond the term set at that time.

Evaluation Period From To Available

Available Award Term

Base Year, Period 1 01 OCT 2016 31 MAR 2017 See Section B Not Applicable

Base Year, Period 2 01 APR 2017 30 SEP 2017 See Section B Not Applicable

Opt 1, Period 1 01 OCT 2017 31 MAR 2018 See Section B 31 Points

Opt 1, Period 2 01 APR 2018 30 SEP 2018 See Section B 31 Points

Opt 2, Period 1 01 OCT 2018 31 MAR 2019 See Section B 31 Points

Opt 2, Period 2 01 APR 2019 30 SEP 2019 See Section B 31 Points

Opt 3, Period 1 01 OCT 2019 31 MAR 2020 See Section B 31 Points

Opt 3, Period 2 01 APR 2020 30 SEP 2020 See Section B 31 Points

Opt 4, Period 1 01 OCT 2020 31 MAR 2021 See Section B 31 Points

Opt 4, Period 2 01 APR 2021 30 SEP 2021 See Section B 31 Points

Opt 5, Period 1 01 OCT 2021 31 MAR 2022 See Section B 31 Points

Opt 5, Period 2 01 APR 2022 30 SEP 2022 See Section B 31 Points

AT 1 (Opt 6), Period 1 01 OCT 2022 31 MAR 2023 See Section B 31 Points

AT 1 (Opt 6), Period 2 01 APR 2023 30 SEP 2023 See Section B 31 Points

AT 2 (Opt 7), Period 1 01 OCT 2023 31 MAR 2024 See Section B 31 Points

AT 2 (Opt 7), Period 2 01 APR 2024 30 SEP 2024 See Section B 31 Points

AT 3 (Opt 8), Period 1 01 OCT 2024 31 MAR 2025 See Section B 31 Points

AT 3 (Opt 8), Period 2 01 APR 2025 30 SEP 2025 See Section B 31 Points

AT 4 (Opt 9), Period 1 01 OCT 2025 31 MAR 2026 See Section B 31 Points

AT 4 (Opt 9), Period 2 01 APR 2026 30 SEP 2026 See Section B 31 Points

AT 5 (Opt 10), Period 1 01 OCT 2026 31 MAR 2027 See Section B Not Applicable

AT 5 (Opt 10), Period 2 01 APR 2027 30 SEP 2027 See Section B Not Applicable

AT 6 (Opt 11), Period 1 01 OCT 2027 31 MAR 2028 See Section B Not Applicable

AT 6 (Opt 11), Period 2 01 APR 2028 30 SEP 2028 See Section B Not Applicable

AT 7 (Opt 12), Period 1 01 OCT 2028 31 MAR 2029 See Section B Not Applicable

AT 7 (Opt 12), Period 2 01 APR 2029 30 SEP 2029 See Section B Not Applicable

AT 8 (Opt 13), Period 1 01 OCT 2029 31 MAR 2030 See Section B Not Applicable

AT 8 (Opt 13), Period 2 01 APR 2030 30 SEP 2030 See Section B Not Applicable

AT 9 (Opt 14), Period 1 01 OCT 2030 31 MAR 2031 See Section B Not Applicable

AT 9 (Opt 14), Period 2 01 APR 2031 30 SEP 2031 See Section B Not Applicable

ATTACHMENT 8, AWARD FEE/TERM PAY-OUT CHART

Performance Rating (r)

Percentage Of Award Fee Pool Earned

Award Term Points Earned

0 To 69 0 0

70 70 12

71 71 13

72 72 14

73 73 15

74 74 16

75 75 17

76 76 18

77 77 19

78 78 20

79 79 21

80 80 22

81 81 22

82 82 23

83 83 23

84 84 24

85 85 24

86 86 25

87 87 25

88 88 26

89 89 26

90 90 27

91 91 27

92 92 28

93 93 29

94 94 30

95 95 31

96 96 31

97 97 31

98 98 31

99 99 31

100 100 31

ATTACHMENT 9, AWARD FEE APPLICATION CHART

0 10 20 30 40 50 60 70 80 90 100

F e e P e rc e n ta g e

Performance Rating

ATTACHMENT 10, AWARD FEE/TERM GRADE DEFINITIONS

I MISSION CAPABILITY

IA TECHNICAL PERFORMANCE

This criterion evaluates the contractor’s understanding of technical support and engineering services for each range; their implementation of sound technical approaches to ensure system operability and maintainability;

and their ability to recognize and address range interoperability and security issues. This criterion evaluates contractor performance against planned schedules. The evaluation will measure contractor ability to identify potential schedule problems early and project the impact of near-term schedule changes on long-term events.

The contractor’s ability to deliver technical reports and other deliverables on time and in a format that is complete, clear, concise, and technically accurate will be evaluated here.

IB PROGRAM MANAGEMENT

This criterion evaluates the contractor’s ability to: 1) Establish an effective and efficient team (to include meeting a small business subcontracting requirement of 25 percent of total dollars obligated) , which reflects strong, open lines of communication, and maintains effective liaison with Government counterparts and other associate contractors. 2) Provide appropriate resources to accomplish the mission. 3) Identify problems before any adverse impacts have resulted, and implement corrective actions that result in minimal impacts.

4) Notify the Government of impending key/critical personnel changes in advance of any potential impact to the program. 5) Address short-term requirements for unique skills and capabilities (surge), as well as flexibility, efficiency, and soundness of approach in reacting to new situations, including coordination, communication, and timely reallocation of resources, as required. 6) Attract, retain, and motivate a workforce with the critical technical, engineering and management knowledge, skills, expertise, and experience necessary to support the unique mission at each range. 7) Establish, maintain, and adhere to an effective security program that includes a keen awareness of security plans and procedures. The contractor will be evaluated on their ability to comply with all applicable security requirements and instructions as specified in the DD Form 254. It is critical that the contractor not have any serious or major incidents involving classified material or operations. 8) The contractor shall ensure that the J-Tech II Enterprise Mission is supported in the safest means practicable. The contractor shall ensure effective environmental, safety, and health (ES&H) management processes are developed, followed, and inherent in all aspects of executing the J-Tech II mission to protect human, natural, and test resources. It is paramount that the contractor’s ES&H Program is sound, preventative-based, and built on industry-wide, best practices to minimize the potential for serious incidents from occurring. 9) Manage subcontracted efforts, with an emphasis on consistency with the small business mandatory goals identified in the Subcontracting Plan of the contract. The contractor will be evaluated on its ability to implement and track approved effectiveness improvements without compromising employee retention, morale, incentives, quality or technical performance.

II COST MANAGEMENT

This criterion evaluates contractor actual cost performance compared to the established budget baseline, and the effective use of the cost control system in the day-to-day management of the contract. Causes and impacts of variances and implementing corrective action planning will be assessed. This criterion evaluates the timely and thorough development of cost estimates, which serve to communicate anticipated contract-funding requirements. The assessment includes the quality and timeliness of cost reporting. Contractor adherence to their cost processes and procedures and continued improvement of the cost accounting system will also be evaluated. This criterion evaluates contractor progress toward demonstrating and implementing indirect cost control management to preclude, where possible, indirect cost growth.

III SPECIAL INTEREST ITEM

During the life of the contract, the Government anticipates that it may want the contractor to devote special emphasis to subjects of particular interest to the Government. Contractor emphasis in these area(s) would be subject to award fee/term considerations;. Additionally, the weighting by annex may change to emphasize performance; however, no additional award fee will be added to the pool to cover these items.

ATTACHMENT 11, AWARD FEE/TERM PERFORMANCE CATEGORIES

Excellent Performance (90 - 100):

Provides timely and comprehensive assessments of cost, schedule, technical performance, and risk management activities for the Government’s insight. Demonstrates strong leadership and develops a proactive, effective, and efficient contractor team. Meets or exceeds established PRS performance thresholds resulting in only minor impact to the mission (if any) and no adverse effect on overall performance.

The contractor's technical performance, program management, cost management and special interest items

(as applicable) are of exceptional merit, clearly exceeding mission objectives, and consistently provides significant benefit to the Government in an efficient and economical manner. The few areas for improvement noted are minor with no recurring problems.