Atch 6. Tunner OH Incentives.docx

ATTACHMENT 6

29 August 2024 Tunner Overhaul Incentive Fee Arrangement

General: This is a Fixed Price Incentive Firm target (FPI(F)) contract with cost and schedule incentives. The maximum total price paid on each task order, including incentives earned, shall not exceed the established ceiling price (120% of target cost). Total Price Paid = Cost (adjusted for over/underrun share) + Normal Profit + Schedule Incentive Profit earned. 50% of the task order profit will be payable to the Contractor as normal profit subject to adjustment IAW FAR Clause 52.216-16, Incentive Price Revision – Firm Target. 50% of the task order profit will be placed in the schedule incentive pool (see Table 1 below).

Table 1

I. INCENTIVE ARRANGEMENT FOR OVERHAUL FPI(F) CLINs

1. Cost: The cost incentive will be subject to a share ratio of 50%/50% (Government/Contractor).

2. Schedule: The schedule incentive to be earned will be based on “on-time” delivery of each of the overhauled loaders. The Contractor will earn the schedule incentive for each "on-time" delivery as set forth in the Schedule, based on the due dates established therein. Although the schedule incentive may be obligated at time of task order award, the Contractor is not authorized to invoice for the schedule incentive earned for the "on-time" delivery until all of the following conditions are met:

a. The Contractor has completed the loader overhaul in accordance with the terms of this delivery order on or before the delivery date set forth in the Schedule, with acceptance as documented on a DD Form 250 (see table 3),

b. The Contractor submits a request for payment of the "on-time" schedule incentive along with the signed DD Form 250 as documentation that delivery of the overhauled loader occurred on or before the delivery date set forth in the Schedule of each task order,

c. The Government reviews the submitted documentation and the Contractor provides any additional information necessary to support the Contractor's request for schedule incentive payment, and

d. The Contractor's request for payment of the schedule incentive is approved by the cognizant Contracting Officer as evidenced by the signed request for payment on the "on-time" schedule incentive.

3. Schedule Incentive adjustment: Beginning with this contract, the Government will assess the Contractor’s past Tunner overhaul delivery performance. If the Government determines the Contractor is capable of continuing on-time overhaul deliveries, the Government may, at its sole discretion, remove the schedule incentive and add all schedule incentive fee dollars to the Cost Incentive profit pool distribution in (table 2) below. The Government will unilaterally reinstate the schedule incentive on any future task order if the Contractor fails to meet contractual overhaul delivery dates.

Table 2

Table 3 Schedule Incentive Milestone Dates

Schedule Incentive Milestones Target Completion Date

· Note: Loader delivery dates will be filled in at time of task order award