Attachment_04_-_GAP_CIE_Incentive_Fee_Plan_v2_(Final).pdf

Attachment 04

GLOBAL ADAPTIVE PLANNING COLLABORATIVE INFORMATION

ENVIRONMENT (GAP CIE) SUSTAINMENT

INCENTIVE FEE PLAN

Solicitation # FA8707-12-R-0014

Date: 31 May 2013

1. OVERVIEW

This Incentive Fee Plan documents the structure and implementation of fee provisions for Cost

Plus Incentive Fee (CPIF) efforts awarded under this contract. The overall intent is to incentivize the Contractor to deliver quality products within cost. The Contractor’s performance in achieving these results will be measured in accordance with the methods detailed in this plan.

The contracting officer will select the appropriate contract type for the effort being contracted for in the Request for Proposal (RFP) for each delivery order. When a CPIF Contract Line Item

Number (CLIN) is selected this incentive fee plan will be applicable.

2. COST INCENTIVE STRUCTURE

A cost incentive will be applicable to all delivery orders containing CPIF CLINs. Each CLIN on the awarded order will specify the estimated cost and fee for contracted effort. Contract clause

‘B057 CONTRACT TYPE: COST-PLUS-INCENTIVE-FEE (DEC 2005)’ will be included in all delivery orders with CPIF CLINs and will reflect the specifics as follows:

Target Cost $ (Will be negotiated for each effort)

Target Fee $ (calculated based on 5% of negotiated Target Cost)

Maximum Fee $ (calculated based on 6% of negotiated Target Cost)

Minimum Fee $ (calculated based on 3% of negotiated Target Cost)

Applicable Share Ratio:

Government 80%

Contractor 20%

The target fee dollar amount may be increased or decreased only by negotiation and modification of the delivery order for added or deleted work.

Unless the Contracting Officer notifies the contractor otherwise, the cost incentive fee will be paid as it accrues in regular installments based upon the percentage of completion of work.

Contractor can bill at the Target Fee rate until such time as an overrun or underrun is formally declared at which point the invoices should change to reflect the appropriate projected fee rate using the applicable Share Ratio.

3. SCHEDULE/PERFORMANCE INCENTIVE STRUCTURE

A per-delivery performance incentive will be applicable to all CPIF CLINs. The performance incentive may also be applied to other CLINs at the discretion of the Contracting Officer. The intent to include a performance incentive will be communicated in the delivery order RFP. The performance incentive will be based upon schedule and the rework rate associated with the CLIN.

Schedule is defined as successful delivery for GDT&E testing by the agreed to date. Rework is defined as all costs to correct all CAT I defects (Software, Configuration Scripts, Security/IA, etc) found during GDT&E including GDT&E integration support, ending when the software has been fielded. Rework Rate will be calculated as follows:

Rework Rate=Total GDT&E actual costs*/Total target cost of the applicable CLIN**

*GDT&E actual costs are captured and tracked under distinct GDT&E WBS element (see WBS)

** Total target cost is taken from the agreed to on contract/delivery order value of the CLIN

The amount of performance incentive earned will be based on the calculated Rework Rate as follows:

Rework Rate Incentive Fee %

0-2.75% 6%*

2.76-3.30% 5.5%

3.31-3.85% 5%

3.86-4.40% 4.5%

4.41-4.95% 4%

4.96-5.50% 3.5%

5.51-6.00% 3%

6.01-6.50% 2.5%

>6.50% 0%

*The maximum incentive fee available for an on-time GDT&E delivery. The incentive fee pool is adjusted for late deliveries as follows:

1-15 Calendar Days late:

Rework Rate Incentive Fee %

0-2.75% 5%

2.76-3.30% 4.5%

3.31-3.85% 4%

3.86-4.40% 3.5%

4.41-4.95% 3%

4.96-5.50% 2.5%

5.51-6.00% 2%

6.01-6.50% 1.5%

>6.50% 0%

16-30 Calendar Days late:

Rework Rate Incentive Fee %

0-2.75% 4%

2.76-3.30% 3.5%

3.31-3.85% 3%

3.86-4.40% 2.5%

4.41-4.95% 2%

4.96-5.50% 1.5%

5.51-6.00% 1%

6.01-6.50% 0.5%

>6.50% 0%

31+ Calendar Days late: No Incentive Fee will be earnable

Contract clause ‘AFLCMC-H022 SCHEDULE / PERFORMANCE INCENTIVE (MAR 2013)’ will be included in all delivery orders with a performance incentive and will reflect the specifics as follows:

Rework Rate Incentive Fee % Dollar Amount

0-2.75% 6%* TBD (Negotiated Cost x Incentive Fee %)

2.76-3.30% 5.5% TBD (Negotiated Cost x Incentive Fee %)

3.31-3.85% 5% TBD (Negotiated Cost x Incentive Fee %)

3.86-4.40% 4.5% TBD (Negotiated Cost x Incentive Fee %)

4.41-4.95% 4% TBD (Negotiated Cost x Incentive Fee %)

4.96-5.50% 3.5% TBD (Negotiated Cost x Incentive Fee %)

5.51-6.00% 3% TBD (Negotiated Cost x Incentive Fee %)

6.01-6.50% 2.5% TBD (Negotiated Cost x Incentive Fee%)

>6.50% 0% TBD (Negotiated Cost x Incentive Fee %)

*The maximum incentive fee available for an on-time GDT&E delivery. The incentive fee pool is adjusted for late deliveries as follows:

1-15 Calendar Days late:

Rework Rate Incentive Fee % Dollar Amount

0-2.75% 5% TBD (Negotiated Cost x Incentive Fee %)

2.76-3.30% 4.5% TBD (Negotiated Cost x Incentive Fee %)

3.31-3.85% 4% TBD (Negotiated Cost x Incentive Fee %)

3.86-4.40% 3.5% TBD (Negotiated Cost x Incentive Fee %)

4.41-4.95% 3% TBD (Negotiated Cost x Incentive Fee %)

4.96-5.50% 2.5% TBD (Negotiated Cost x Incentive Fee %)

5.51-6.00% 2% TBD (Negotiated Cost x Incentive Fee %)

6.01-6.50% 1.5% TBD (Negotiated Cost x Incentive Fee %)

16-30 Calendar Days late:

Rework Rate Incentive Fee % Dollar Amount

0-2.75% 4% TBD (Negotiated Cost x Incentive Fee %)

2.76-3.30% 3.5% TBD (Negotiated Cost x Incentive Fee %)

3.31-3.85% 3% TBD (Negotiated Cost x Incentive Fee %)

3.86-4.40% 2.5% TBD (Negotiated Cost x Incentive Fee %)

4.41-4.95% 2% TBD (Negotiated Cost x Incentive Fee %)

4.96-5.50% 1.5% TBD (Negotiated Cost x Incentive Fee %)

5.51-6.00% 1% TBD (Negotiated Cost x Incentive Fee %)

6.01-6.50% 0.5% TBD (Negotiated Cost x Incentive Fee %)

31+ Calendar Days late: No Incentive Fee will be earnable

The contracting officer will unilaterally obligate the earned Performance Incentive at the conclusion of the applicable effort after all work and rework has been completed and actual costs have been accumulated and accounted for.

4. CHANGE PROCEDURE

Either party may recommend changes to this plan at any time. All changes will be accomplished via bilateral contract modification.

5. CONTRACT TERMINATION

In the event this contract is terminated for the convenience of the Government after the start of an awarded effort, the incentive fee deemed earned and to be paid will be a matter of equitable adjustment in accordance with the termination clause of this contract.