Statement_of_Work_Attachment_C_(Incentives).pdf

EDM Delivery Schedule Incentive Arrangement – Northrop Grumman

Maximum possible delivery schedule incentive is $_____K providing total contract cost incurred is at target or below.

EDM Schedule Incentive Incentive pool - $_________

• Applies to 1st 4 EDMs of each configuration (F-22 and E-2D) - 8 units total

• All 8 units 60 days in advance of contract delivery requirement – 100%

• All 8 units 45 days in advance of contract delivery requirement – 75%

• All 8 units 30 days in advance of contract delivery requirement – 50%

• All 8 units 15 days in advance of contract delivery requirement – 25%

• Delivery is defined as DD250 of each the applicable unit(s) after having met requirements of a Government-approved Acceptance Test Procedure (ATP). The incentive will be based on the delivery of all of the 1st four (4) EDMs of each configuration (F-22 and E-2D) being developed under this contract, for a total of 8 units. The acceleration will be measured against delivery of the 8th of the 8 applicable EDM units for determination of the award amount of the EDM delivery incentive.

• The contractor shall not be eligible for any incentives if the contractor fails to meet SRD threshold performance requirements at the conclusion of Formal Qualification Testing (FQT) as defined by the Government’s approval of the FQT report, or if the contract target cost is exceeded.

PRU Delivery Schedule Incentive Arrangement - Northrop Grumman

Maximum possible delivery schedule incentive is $___________ providing total contract cost incurred is at target or below.

PRU Schedule Incentive Incentive pool -

• Applies to 1st PRU of each configuration (F-22 and E-2D) - 2 units total

• Both 1st units 60 days in advance of contract delivery requirement – 100%

• Both 1st units 45 days in advance of contract delivery requirement – 75%

• Both 1st units 30 days in advance of contract delivery requirement – 50%

• Both 1st units 15 days in advance of contract delivery requirement – 25%

• Delivery is defined as DD250 of each the applicable unit(s) after having met requirements of a Government-approved Acceptance Test Procedure (ATP). The incentive will be based on the delivery of both of the 1st PRUs of each configuration (F-22 and E-2D) being developed under this contract, for a total of 2 units. The acceleration will be measured against delivery of the 2nd of the 2 applicable PRU units for determination of the award amount of the PRU delivery incentive.

• The contractor shall not be eligible for any incentives if the contractor fails to meet SRD threshold performance requirements at the conclusion of Formal Qualification Testing (FQT) as defined by the Government’s approval of the FQT report, or if the contract target cost is exceeded.

Conditions:

-The contractor shall not be eligible for any incentives if the contractor fails to meet SRD threshold performance requirements at the conclusion of Formal Qualification Testing (FQT) as defined by the Government’s approval of the FQT report, or if the contract target cost is exceeded. Each incentive is independent.

-Both schedule incentives are based on accelerating unit delivery relative to contract schedule requirements. For each 15 day improvement in schedule the contractor may earn 25% of the applicable incentive pool providing the contract is accomplished at the contract target cost or below.

Cumulative incentive to be earned at contract target cost or below for each of the two schedule incentives:

15 day acceleration 25% 30 day acceleration 50% 45 day acceleration 75% 60 day acceleration 100%

Timing Incentive Arrangement

Maximum possible timing incentive is $__________ providing total contract cost incurred is at target or below.

Incentive pool - $___________

• The timing incentive is to encourage performance for the Maximum Accuracy Error (MAE) of no more than a 500ns degradation over a 2 hour duration in the absence of GPS and external time or data source inputs

• MAE ≤ 100ns – 100%

• 100ns < MAE ≤ 200ns – 50%

• 200ns < MAE ≤ 300ns – 25%

• MAE shall be measured as part of the functional qualification testing for the EGI-M. The incentive evaluation procedure will be included in the functional qualification test plan and the incentive evaluation will be based on test results as documented in the final test report.

• The MAE will be assessed at multiple temperatures, temperature transitions, vibrations level and vibration transients. Temperature and vibration will be as specified in the EGI-M SRD. The incentive awarded will be based on the highest degradation levels observed in any of the EGI-M variants.

• The contractor shall not be eligible for any incentives if the contractor fails to meet all SRD threshold performance and SOW requirements (whether timing or other requirements) or if the contract target cost is exceeded.

Note – To receive the incentive, expected recurring cost should increase by no more than $______/unit based upon actual average cost of PRUs procured during EMD, vendor quotes and analysis.