Section J Attachment 9 SECTION H PROS VI OBJECTIVE PERFORMANCE INCENTIVE OPI 23 NOV 2021 REV 1.pdf

[AFMC] NONSTANDARD CLAUSE CONTROL TEMPLATE

FULL TEXT OF CLAUSE

SOLICITATION/CONTRACT NUMBER: FA8630-22-R-4000

CLAUSE TITLE: AFLCMC/WFK SECTION H PROS VI OBJECTIVE PERFORMANCE INCENTIVE (OPI)

(OCT 2021)

DATE: 11/23/2021

FULL TEXT OF CLAUSE:

AFLCMC/WFK SECTION H PROS VI OBJECTIVE PERFORMANCE INCENTIVE (OPI) (OCT 2021)

The contractor may earn up to $16,200,000 over the life of the contract if all Option Years are exercised. Each OPI will be evaluated at the conclusion of each semiannual time period in the OPI Schedule Matrix (schedule). At Contract Award the schedule shall incorporate actual dates. Failure to deliver Full Operational Capability shall not cause schedule modification. Contractor performance shall be continually monitored. The Contractor shall accept downward adjustment on earned OPI for any defective supply, maintenance, service, or Task Order as validated through the SDR process or by the Contracting Officer.to provide the Government a remedy for a Partner Nation’s validated SDR and to satisfy the limitation at FAR 46.504 which provides Acceptance on the basis of the Contractor’s Certificate of Conformance. Contractor’s OPI schedule shall start once Government Approval for Contractor’s Test Report demonstrates the full operational capability to begin receiving all PROS Commercial Transactions. Contractor shall receive all PROS Commercial Transactions to begin the OPI schedule and become eligible to meet or exceed the thresholds.

1. OPI 1- The Contract Competition Index (CCI) evaluates the top 100 vendors that exceed $25,000.00 in competitively awarded contracts during the semester. The CCI is a measure of market concentration and market competitiveness. It is calculated by squaring the market share of each of the top 100 vendors competing in the market, competitively awarded contract value determines the market, and then summing the resulting numbers. Unconstrained it can range from close to zero to 10,000 and with the top 100 vendors constraint it can range from 100 to 10,000. This OPI becomes available when 100 vendors are active with at least $25,000.00 competitively awarded per vendor in the evaluated semiannual period.

A lower CCI indicates increased competition and a higher CCI indicates decreased competition.

The CCI formula is:

CCI= s1

2+s2 2+s3

2+…sn

Where:

Sn = the contract competition market share percentage of a vendor firm n expressed as a whole number, not a decimal.

2. OPI 2 – Increasing numbers of Commercial Transactions terminating in Beyond Economical Repair (BER) or

Beyond Physical Repair (BPR) results in lower customer satisfaction, as the customer pays for a service and has perceived limited value in return. OPI 2 applies an incentive to reward low occurrence of BER and BPR and in the event of BER and BPR, more value is provided to the customer by incentivizing an alternative termination to the BER or BPR Commercial Transaction through the delivery of Market Research Report, Failure Report, and

Rough Order Magnitude that provides the customer a new supply Commercial Transaction. This OPI becomes available when 1 Commercial Transaction Terminates as BER or BPR in the evaluated semester. The formula will utilize totals for the life of the contract. This OPI is available during all semiannual time periods and measured for the evaluated semiannual time period.

The BER or BPR Conversion Rate formula is:

BER or BPR Conversion Rate = CRTB / RTB

CTB = Commercial Transaction Terminated BER or BPR & Converted to New Commercial Transaction Awarded

TTB = Total Terminated BER or BPR

3. OPI 3 – The Cancellation Rate (CR) evaluates total Commercial Transactions canceled out of the total

Commercial Transactions during the semiannual time period. This OPI is available during all semiannual time periods and measured for the evaluated semiannual time period.

The Cancellation Rate formula is:

CR = TC/TCT

TC = Total Contractor Canceled TCT = Total Commercial Transaction ____________________________________________________________________________________Objective Performance Incentive (OPI) Payment

The OPI is not subject to the allowable cost and payment or termination clauses of this contract.

Contractor may bill for the OPI immediately upon receipt of the Contracting Officer's (CO) authorization for payment of the earned OPI amount. This authorization will be in the form of a task order issued after the Program Management Office (PMO) has determined the amount the contractor has earned. PMO will make the final decision of the OPI amount paid based on contractor performance during the OPI evaluation period and IAW the OPI Matrix provided below for the Semi-Annual Incentive for OPI-1, OPI-2, and OPI-3.

OPI Incentive Range thresholds are provided below and are not to be combined within the same OPI.

Semi-Annual OPI Matrix

PERFORMANCE

CRITERIA

PERFORMANCE

OBJECTIVE

SURVEILLANCE INCENTIVE RANGE

OPI-1 Contract Competition Index top 100 vendors by awarded values

X = s1 2+s2

2+s3 2+…sn

2 100% surveillance reported through SAMIS, CTS, and supported by sampling

X ≤ 350 = $450K X ≤ 550 = $300K X ≤ 750 = $200K

OPI-2 Beyond Economical Repair and Beyond Physical Repair

X = CTB / TTB 100% surveillance reported through SAMIS, CTS, and supported by sampling

X ≥ 50% = $180K X ≥ 30% = $120K X ≥ 10% = $ 80K

OPI-3 Contractor Cancellation Rate

X = TC/TCT 100% surveillance reported through SAMIS, CTS, and supported by sampling

X ≤ 5% = $180K X ≤ 8% = $120K X ≤ 10% = $ 80K