15_Attachment_10A_EELV_Phase_2_Incentive_Plan.docx

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Attached to
Evolved Expendable Launch Vehicle (EELV) Phase 2 Launch Service Procurement (LSP) Draft Request for Proposals (dRFP) Federal contract opportunity
Solicitation number
FA8811-19-R-0002
Issued by
Department of the Air Force Space Command Space and Missile Systems Center

About this file

This document outlines a cumulative mission success incentive plan for the Evolved Expendable Launch Vehicle Phase 2 Launch Service Procurement contract. The plan defines performance incentives for launch services procured under contract FA8811-19-R-0002. It establishes a structure for earning incentive payments of up to $50 million for every third consecutive successful mission, with mission success determined based on criteria for acceptable launch vehicle and satellite delivery performance. Organizational responsibilities, incentive amounts and payment terms, evaluation procedures for determining mission success or failure, and provisions for plan changes are delineated.

15 Attachment 10A EELV Phase 2 Incentive Plan

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Text version

PRE-DECISIONAL

Evolved Expendable Launch Vehicle (EELV) Phase 2 Launch Service Procurement

FA8811-19-R-0002

Attachment 10a Cumulative Mission Success Incentive Plan

3 December 2018

Revision
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1. INTRODUCTION

This Cumulative Mission Success Incentive (CMSI) Plan defines the performance incentive for the Evolved Expendable Launch Vehicle (EELV) program and governs all National Security Space (NSS) Launch Services that are ordered, launched, and accepted under Contract FA8811-19-R-0002. The CMSI Plan describes performance incentives for those activities occurring after intentional ignition followed by release of the hold-down restraints.

2.0 ORGANIZATIONAL RESPONSIBILITIES

2.1 The CMSI organization consists of the following: The CMSI Plan Approving Official, Incentive Certifying Official (ICO), and the Procuring Contracting Officer (PCO).

2.2 CMSI Plan Approving Official: The Program Executive Officer for Space Systems approves the CMSI Plan and substantial changes upon recommendation from the Incentive Certifying Official.

2.3 Incentive Certifying Official (ICO): The Director, Launch Enterprise Systems Directorate (SMC/LE) will serve as the Incentive Certifying Official. The ICO reviews the CMSI Plan and recommends approval by CMSI Plan Approving Official, considers the Contractor’s reports and other pertinent data, and certifies whether the Contractor has met the criteria for Mission Success as outlined in this performance incentive plan.

2.4 Procuring Contracting Officer (PCO): The PCO is the liaison between Contractor and Government personnel and executes the CMSI Plan. The PCO implements the ICO’s incentive decision with respect to Mission Success, approves and implements minor changes to the CMSI Plan, prepares and distributes contract funding modifications obligating the appropriate incentive amount earned by the Contractor, and maintains appropriate documentation as part of the official Government contract file.

3.0 INCENTIVE STRUCTURE

3.1 Cumulative Mission Success Incentive (CMSI)

Table 1 identifies the CMSI amounts available to be earned for each launch during the contract period of performance. Table 1 contains the total CMSI amount that is available to be earned for the referenced missions (Table 1, Column 2). The CMSI amounts will be paid under the terms of this plan per Table 1, Column 4.

3.2 Earning CMSI

3.2.1 Mission Success. The Contractor shall earn the amount listed in Table 1, Column 2 “CMSI Flight Incentive Credit”, if a mission is deemed a success in accordance with Section 4. This value will accrue as listed in Table 1, Column 3 “CMSI Accrued Incentive.” The incentive is paid after a designated amount of cumulative successful missions and paid per Column 4, “CMSI Payout”. The final mission of this contract will payout its accrued incentive regardless if it is a payout mission as defined in Table 1, Column 4, assuming it is deemed a “Mission Success”.

3.2.2 Mission Failure. The Contractor shall forfeit the CMSI listed in Table 1, Column 3 “CMSI Accrued Incentive” in its entirety if a mission is deemed a Mission Failure as defined in Section 4.4 of this plan. Furthermore, if the Contractor has never achieved the initial three consecutive mission success threshold, the success counter will reset to zero; otherwise, the success counter will reset to the last payout achieved. No payment shall be made in the event a mission is deemed a failure regardless if the satellite is determined to have operational utility.

4. EVALUATION

4.1 Mission Success Determination

In accordance with Attachment 4, Launch Service Acceptance Criteria, within 30 days of the Government Post Flight Review, the ICO will use the data specified in Section 4.2 and the criteria in Section 4.3 to provide the PCO with a Launch Service mission success determination, and the PCO will notify the contractor in writing whether a mission launched has been deemed a Mission Success or a Mission Failure as it is defined in this incentive plan. For missions with a Government-directed secondary and/or auxiliary payload(s), the CMSI mission success determination will be based on successful delivery of the primary mission, regardless of the success or failure of the Government-directed secondary and/or auxiliary payload(s). In the event the Contractor does not concur with the PCO’s written decision, it shall be considered a dispute within the meaning of the clause FAR 52.233-1, “Disputes-Alternate 1” as included by reference in clause FAR 52.212-4(d).

4.2 Data Reliance. Mission Success will be determined in part by using the data items outlined in Attachment 4, Launch Service Acceptance Criteria.

4.3. Mission Success Criteria. A Launch Service shall be scored a “Mission Success” if the mission is accepted per Attachment 4, Launch Service Acceptance Criteria.

4.4 Mission Failure. A Launch Service shall be scored a “Mission Failure” as defined per Attachment 4, Launch Service Acceptance Criteria.

4.5 Requirement for Data. In the event a mission is not scored a Mission Success, all data including but not limited to telemetry, tracking, and ephemeris data (including supporting accuracy analysis) used by the Government to determine performance will be furnished to the Contractor upon request.

5.0 CMSI PLAN ADDITIONS/DELETIONS:

5.1 CMSI PLAN SUBSTANTIAL CHANGES

If during the contract period of performance, the intent of this CMSI Plan substantially changes, either party may request in writing, a re-negotiation of the plan. Changes to this plan can only be made by mutual agreement.

5.2 CMSI PLAN MINOR CHANGES

Changes to the CMSI Plan that are clerical or administrative in nature shall be approved and implemented by the PCO.

6.0 TERMINATION FOR CONVENIENCE OR DEFAULT

CMSI payments apply only if a mission is launched. Accordingly, in the event the subject contract is terminated for default or for the convenience of the Government, no CMSI payments will apply to any performance under the contract associated with missions or items not launched as of the date the contractor receives the Notice of Termination required by FAR 49.102.

7.0 PAYMENT

Within 60 days of the PCO’s written decision that a mission has been deemed a Mission Success and the contractor has accumulated the required consecutive missions per Table 1, the PCO shall execute a unilateral contract modification obligating the appropriate amount of CMSI for that missions allowing the contractor to invoice for 100% of the incentive earned. The CMSI will be obligated to a newly established CLIN within the CLIN Series YY06XX of the contract.

Table 1: Cumulative Mission Success Incentive

Cumulative Successful Flights Achieved
Flight Incentive Credit
Accrued Incentive
Payouts
1st
$10 Mil
$10 Mil
2nd
$10 Mil
$20 Mil
3rd
$10 Mil
$30 Mil
$30 Mil
4th
$10 Mil
$10 Mil
5th
$10 Mil
$20 Mil
6th
$10 Mil
$30 Mil
7th
$10 Mil
$40 Mil
8th
$10 Mil
$50 Mil
$50 Mil
9th
$10 Mil
$10 Mil
10th
$10 Mil
$20 Mil
11th
$10 Mil
$30 Mil
12th
$10 Mil
$40 Mil
13th
$10 Mil
$50 Mil
$50 Mil
14th
$10 Mil
$10 Mil
15th
$10 Mil
$20 Mil
16th
$10 Mil
$30 Mil
17th
$10 Mil
$40 Mil
18th
$10 Mil
$50 Mil
$50 Mil
19th
$10 Mil
$10 Mil
20th
$10 Mil
$20 Mil
21st
$10 Mil
$30 Mil
22nd
$10 Mil
$40 Mil
23rd
$10 Mil
$50 Mil
$50 Mil
24th
$10 Mil
$10 Mil
25th
$10 Mil
$20 Mil
26th
$10 Mil
$30 Mil
27th
$10 Mil
$40 Mil
28th
$10 Mil
$50 Mil
$50 Mil
29th
$10 Mil
$10 Mil
30th
$10 Mil
$20 Mil
31st
$10 Mil
$30 Mil
32nd
$10 Mil
$40 Mil
33rd
$10 Mil
$50 Mil
$50 Mil

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