12Dec2019_07_Performance_Incentive_Plan.pdf

Launch Enterprise (SMC/ECL) 1 Systems Engineering & Integration (SE&I) Services 2

OBJECTIVE PERFORMANCE INCENTIVE PLAN 4

Solicitation # FA8811-20-R-0003

Date: 12 December 2019 7

Prepared by: 9

Launch Enterprise (SMC/ECL) 11

Los Angeles Air Force Base, California 90245 12

Revision History 18

Revision Description Date

1.0 dRFP Release 2 December 2019

2.0 dRFP Release 6 December 2019

3.0 Final RFP Release 12 December 2019

Table of Contents 19

1.0 INTRODUCTION ....................................................................................................................................................... 4 20

2.0 GOAL ........................................................................................................................................................................ 4 21

3.0 INCENTIVE STRUCTURE AND INCENTIVE PERIOD ..................................................................................................... 4 22

4.0 FREQUENCY OF INCENTIVE PAYMENT DETERMINATION ......................................................................................................... 5 23

5.0 INDIVIDUAL AND ORGANIZATIONAL RESPONSIBILITIES .......................................................................................... 5 24

5.1 Incentive Approving Official (IAO) ................................................................................................................................ 5 25

5.2 Incentive Reviewing Official (IRO) ................................................................................................................................ 5 26

5.3 Procurement Contracting Officer (PCO) ....................................................................................................................... 6 27

5.4 Performance Monitors ................................................................................................................................................. 6 28

6. INCENTIVE POOLS ............................................................................................................................................................... 7 29

7.0 INCENTIVE CRITERIA ................................................................................................................................................ 8 30

7.1 Compromised Information Incidents ................................................................................................................................ 8 31

7.2 Staffing Stability ............................................................................................................................................................... 9 32

7.3 Customer Satisfaction Ratings ....................................................................................................................................... 10 33

7.4 Option Period Incentive Criteria ..................................................................................................................................... 12 34

8.0 SURVEILLANCE METHODS ...................................................................................................................................... 13 35

8.1 Surveillance ................................................................................................................................................................ 13 36

8.2 Customer Comment: ................................................................................................................................................... 13 37

8.3 Third Party Audits: ...................................................................................................................................................... 13 38

9.0 INCENTIVE PAYMENT DETERMINATION ................................................................................................................ 13 39

10.0 PERFORMANCE INCENTIVE PLAN CHANGE PROCEDURE ...................................................................................................... 13 40

11.0 TERMINATION ........................................................................................................................................................ 15 41 ANNEX A– CONTRACTOR PROPOSED PERFORMANCE INCENTIVE ....................................................................................................... 16 42

1.0 INTRODUCTION 46

This plan establishes SMC/ECL’s performance incentives for the Systems Engineering & Integration-2 48 (SE&I-2) contractor (hereafter referred to as “the Contractor” or “SE&I 2 Contractor”. In addition to fixed 49 fee that will be paid for the CPFF CLINs, the Contractor will have the opportunity to earn a performance 50 incentive for meeting the criteria outlined in this plan. The available objective performance incentives will 51 be in addition to the fixed fee and shall not exceed the statutory limits stated in FAR 15.404-4 when the 52 performance incentive and fixed fee are combined. Fixed fee shall be payable per FAR 52.216-8. The 53 performance incentive earning shall be payable per this incentive plan. Refer to Annex A of this incentive 54 plan for the earnable performance incentive pools for the base and, if exercised, the option years. 55 This plan provides the policies and procedures used to determine the objective performance incentive 57 earning for the SE&I-2 Contract. This Incentive Plan is applicable to the following SE&I-2 CPFF CLINs 58 (0100-0105) and, if exercised, their respective option periods: 59 0100 SMC/ECL Procurement 61 0101 45 Operations Group (OG) Procurement 62 0102 45 OG Operations and Maintenance (O&M) 63 0103 30 OG Procurement 64

0104 30 OG O&M 65

0105 SMC/ECL Research, Development, Technology, and Engineering (RDT&E) 66 The SE&I Contractor’s overall total Objective Performance Incentive percentage shall not exceed 7% of the 68 estimated cost of the CPFF CLINs that excludes the Cost of Money. This document will demonstrate how 69 the total incentive pool is broken down into its component parts and how those parts are calculated. 70

2.0 GOAL 72

The purpose of this plan is to encourage the SE&I-2 Contractor to provide optimal performance and ensure 73 that the Government achieves the following goals: Mission Success, and Assured Access to Space. The 74 following goals for this contract were derived from the SMC/ECL goals and its relation to the performance 75 on this contract: 76

1. Ensure Key personnel with appropriate qualifications are in place in time and minimize their 77 attrition; 78

2. Ensure appropriate level of personnel with appropriate qualifications are in place to fulfill the 79 requirements, and their impact to Government operations is minimized; 80

3. Provide timely, high quality technical support and forge solid working relationships that enable 81 mission success and Assured Access to Space; 82

4. Ensure program and proprietary data is protected and security incidents are eliminated. 83

3.0 INCENTIVE STRUCTURE AND INCENTIVE PERIOD 85

The total objective performance incentive pool shall not exceed a total of 7% of the estimated cost of the 86 CPFF CLINs that excludes the Cost of Money. The allocation of percentages are shown below. The 87 performance incentive pool will be broken down into two components and shall not exceed the associated 88 percentages. The two components were derived from SMC/ECL goals and objectives, and its relation to 89 the performance objectives on this contract. 90

The Compromised Information Incidents criteria is assessed on a 100% - 0% gradation of the earned 92 incentive. The earned incentive in 7.2 – 7.3 will be multiplied by the earned percentage from 7.1. A 0% in 93

7.1 will forfeit the Contractor of any performance incentive for the respective period of evaluation. A sample 94 calculation is provided in Annex A of this document. 95

Incentive Area (Base Year) Percentages Total Percentage of CPFF CLINS

7.1 Compromised Information Incidents 100%-0% of the

Earned Incentive

NTE 7%

7.2 Staffing Stability NTE 4% Total

FOC performance NTE 1% Key personnel retention NTE 1.5% Non-key personnel retention NTE 1.5%

7.3 Customer Satisfaction Ratings NTE 3% Total

Validated formal complaints NTE 1.5% Innovation NTE 1.5%

The Incentive Plan at contract award establishes the incentive criteria for the Base Year and Option Years. 98 The Base Year Incentive plan at contract award is written to emphasize seamless handoff with minimal 99 disruption. The criteria for each option year may change and the Government may provide the revised 100 Incentive Plan prior to each option exercise. SMC/ECL has the unilateral authority to change the incentive 101 criteria prior to the exercise and award of an option period. The decision to revise the incentive criteria shall 102 not be subject to the Disputes Clause or the Contract Disputes Act. 103

4.0 FREQUENCY OF INCENTIVE PAYMENT DETERMINATION 105

The performance incentive pool will be calculated and paid annually. SMC/ECL’s payment determination 106 is expected to be completed no later than 60 calendar days after the conclusion of the base and option periods 107 of performance in accordance with the terms of this performance incentive plan. 108

5.0 INDIVIDUAL AND ORGANIZATIONAL RESPONSIBILITIES 110

The incentive assessment organization consists of an Incentive Approving Official (IAO), an Incentive 111 Reviewing Official (IRO), a Procurement Contracting Officer (PCO), and Performance Monitors. 112

5.1 Incentive Approving Official (IAO) 114

The Director, Launch Enterprise (ECL), is the IAO. The IAO approves all substantive and non-115 administrative changes upon recommendation from both the Program Manager (PM) and PCO. The 116 IAO reviews the IRO recommendation and determines approval/ non-approval of the performance 117 incentives based on the compilation of pertinent data affecting the Contractor's performance in 118 meeting performance incentive criteria. 119

5.2 Incentive Reviewing Official (IRO) 121

The IRO is the SMC/CoS and will serve as the reviewing official. The IRO reviews the Performance 122 Incentive Plan and recommends approval of the performance incentives to the IAO based on his or 123 her compilation of pertinent data regarding the Contractor’s performance in meeting the incentive 124 criteria. 125

The IAO may also review the Contractor’s report(s) in assessing the Contractor’s compliance with 127 this plan. The IRO provides a recommendation to the IAO concurring that the criteria of this plan 128 have been met or non-concurring and providing rationale for their non-concurrence. 129

5.3 Procurement Contracting Officer (PCO) 131

The PCO is the liaison between the Contractor and Government personnel. The PCO prepares and 132 distributes contract funding modifications obligating the appropriate amount of performance 133 incentive earned by the Contractor, and maintains appropriate incentive assessment documentation 134 as part of the official Government contract file. 135 The PCO will determine if changes to the plan are substantive or non-substantive. The PCO 137 approves all non-substantive changes to the plan. The IAO approves all substantive changes to the 138 Performance Incentive Plan. 139

5.4 Performance Monitors 141

Performance monitors are assigned to observe and maintain records of the Contractor’s performance. 142 The performance monitors are assigned to specific criteria while they are responsible for monitoring 143 and briefing the status to the IRO. 144 The performance monitor will compile and maintain records of the Contractor’s performance 146 throughout the evaluation period. The Contracting Officer Representative (COR) in conjunction with 147 the Program Managers in performing offices will maintain oversight of the performance monitors 148 throughout the evaluation period. 149

6. INCENTIVE POOLS 152

Reference Annex A to this plan on instructions to complete. When completing, Offerors shall only 153 include the Cost Plus Fixed Fee CLINs (excluding cost of money) (XX01-XX05). 154

Period Estimated Cost

(Excluding COM) for all CPFF CLINs

7.2 Staffing Stability

7.3 Customer

Satisfaction Ratings

Total Available Pool

Base Year

(BY)

Option Year

1 (OY1)

Option Year

2 (OY2)

Option Year

3 (OY3)

Option Year

4 (OY4)

Option Year

5 (OY5)

Option Year

6 (OY6)

Option Year

7 (OY7)

Option Year

8 (OY8)

Option Year

9 (OY9)

Six month extension Option

Total $ $ $ $

7.0 INCENTIVE CRITERIA 158

7.1 Compromised Information Incidents 160

As defined in DFARS 252.204-7008, 252.204-7009, and 252.204-7012: 162

“Compromise” means disclosure of information to unauthorized persons, or a violation of 164 the security policy of a system, in which unauthorized intentional or unintentional disclosure, 165 modification, destruction, or loss of an object, or the copying of information to unauthorized 166 media may have occurred. 167 “Contractor attributional/proprietary information” means information that identifies the 169 contractor(s), whether directly or indirectly, by the grouping of information that can be traced 170 back to the contractor(s) (e.g., program description, facility locations), personally identifiable 171 information, as well as trade secrets, commercial or financial information, or other 172 commercially sensitive information that is not customarily shared outside of the company. 173 “Controlled technical information” means technical information with military or space 175 application that is subject to controls on the access, use, reproduction, modification, 176 performance, display, release, disclosure, or dissemination. Controlled technical information 177 would meet the criteria, if disseminated, for distribution statements B through F using the 178 criteria set forth in DoD Instruction 5230.24, Distribution Statements on Technical 179 Documents. The term does not include information that is lawfully publicly available without 180 restrictions. 181

The Contractor shall ensure that no controlled technical information or Contractor 183 attributional/proprietary information (e.g. Launch Service Contractors’ information) is 184 compromised in violation of DFARS 252.204-7008, 252.204-7009, 252.204-7012 or the SE&I-2 185 Contractor Non-Disclosure Agreements or Associate Contractor Agreements. Compromising 186 controlled technical information or Contractor attributional/proprietary information can potentially 187 cause litigations and expose the US Government to liabilities. 188 To earn the performance incentive on this contract, the SE&I-2 Contractor shall report directly to 190 the PCO and Program Manager (in addition to any reporting requirements under this contract) all 191 compromised information in accordance with DFARS 252.204-7008, 252.204-7009, 252.204-7012 192 and shall have: 193

A. Zero (0) compromised information incidents – 100% of the potential performance 195 incentive is available for 7.2 – 7.3 criteria 196

B. One (1) compromised information incident – 80% of the potential performance incentive 197 is available for 7.2 – 7.3 criteria 198

C. Two (2) compromised information incident – 50% of the potential performance incentive 199 is available for 7.2 – 7.3 criteria 200

D. More than two (2) compromised information incident – 0% of the potential performance 201 incentive is available for 7.2 – 7.3 criteria 202

The Contracting Officer is the final arbitrator of whether or not an event will be assessed as an 204 incident. Furthermore, should any incident rise to such a significant level that the Government is 205 exposed to serious liability and litigation risk, then the Contracting Officer can apply any multiplier 206 to the potential performance incentive available for 7.2 and 7.3 criteria. 207

Per the SE&I-2 PWS, Section 2, Applicable Documents, Compliance, the SE&I-2 Contractor shall 208 comply with all security requirements as described in the DD Form 254. Any security violations will 209 result in Corrective Action Report (CAR). 210

If a compromised information incident occurs, the SE&I-2 Contractor can provide evidence that the 211 incident is not due to SE&I-2 Contractor negligence, faulty processes, or other factors within the 212 SE&I-2 Contractor’s control, and a mitigation effort/strategy for Government’s consideration. The 213 Government will consider the SE&I-2 Contractor’s written justification and determine if the incident 214 is or is not counted against the Performance Incentive criteria. 215

7.2 Staffing Stability 216

The performance incentive for this section shall be earned through the accomplishment of the below 218 criteria. The maximum performance incentive that can be earned in this section is 4% out of the 7% 219 reserved. 220 All performance levels in between tiers of performance incentive criteria will be awarded at the 222 lower criteria. For example, 97% staffed on day 31 after ATP, which falls between 95% staffed and 223 98% staffed (B and C tiers below) will earn the 95% tier which is 0.25% of the performance incentive 224 pool. 225

1) FOC is defined as day 31 from ATP. Criterion to earn the performance incentive in “FOC 227

Performance” area – for the Contractor to be eligible to earn the performance incentive in this 228 area, the following criteria shall be met: 229

A) 100% staffed at FOC on day 31 after ATP – 1% of the performance incentive pool 231 B) At least 98% staffed at FOC on day 31 after ATP – 0.75% of the performance incentive 232 pool 233 C) At least 95% staffed at FOC on day 31 after ATP – 0.25% of the performance incentive 234 pool 235 D) Less than 95% staffed at FOC on day 31 after ATP – 0% of the performance incentive pool 236

Note: The staffing level will be calculated as a percentage of the positions in the Contractor 238 proposed staffing matrix (Attachment 8, Staffing Plan to the contract). 239

For areas 2 and 3 below, all Key personnel and all Non-Key personnel shall have qualifications and 241 experience equivalent to that in Contractor’s proposed staffing matrix (Attachment 8, Staffing Plan to the 242 contract) in order to be considered for the performance incentive unless COR and PCO have in writing 243 exempted/relaxed the requirement for certain positions. The PCO will be the final decision authority for 244 considering exigent circumstances on a case-by-case basis. Exigent circumstances do not include turnover 245 due to other employment opportunities. 246 Attrition is defined as negative (reduction) change in personnel during the period of performance 248 from the staffing plan. The Government considers attrition to have occurred on the day following 249 the last day that the employee is present to perform on the requirements of this PWS. 250

Retention will be calculated as: 252 ((# proposed personnel – # of positions turned over) / (# proposed personnel)) * 100 253

2) Criterion to earn the performance incentive in “key personnel retention” area – for the 256 contractor to be eligible to earn the performance incentive in this area, the following criteria 257 shall be met: 258

A) Zero Key personnel attrition – 1.5% of the performance incentive 260 B) One Key personnel attrition – 1% of the performance incentive 261 C) More than One key personnel attrition – 0% of the performance incentive 262

Note. During the calculation for retention of key personnel, the following will be excluded and not 264 counted against the Contractor’s retention rates: 265

1. Disability or death; or, 266

2. Planned employee development and rotations, management decision to reassign 267 personnel (to other programs or lateral), retirements and other management decisions that 268 result in change in key personnel that are communicated to the Government at least 30 269 calendar days in advance, and an equivalent (to that in Contractor’s proposed staffing 270 matrix) replacement is provided 5 business days prior to the outgoing employee departing 271 to allow for transition 272

3) Criterion to earn the performance incentive in “Non-key personnel retention” area – for the 274

Contractor to be to earn the performance incentive in this area, the following criteria shall be 275 met: 276

A) At least 95% retention – 1.50% of the performance incentive 278 B) At least 90% retention – 0.75% of the performance incentive 279 C) Less than 90% retention – 0% of the performance incentive 280

Note. During the calculation for retention of non-personnel, the following will be excluded and not 282 counted against the Contractor’s retention rates: 283

1. Disability or death; or, 284

2. Timely replacements, equivalent to that in Contractor’s proposed staffing matrix, that are 285 provided within 10 business days of attrition will not be counted against the Contractor’s 286 performance. 287

7.3 Customer Satisfaction Ratings 289

Customer satisfaction will be rated in the following sub-areas: 290

1. Validated formal complaints 292 The Contractor shall collaborate with the Government, including other contractors and Federally 294 Funded Research and Development Contactor (FFRDC) (e.g. Aerospace) providing direct support 295 to the Government, and industry partners (collectively called mission partners) to monitor 296 Government activities and identify integration opportunities to support the Government in 297 achieving and maintaining Assured Access to Space. To receive credit in this area, the Contractor 298 should minimize incidences of non-cooperation with mission partners resulting in degradation of 299 relationships, delay in schedule, or reduction in performance of any kind. The PCO will have 300 unilateral authority to determine if a mission partner’s complaint is valid. 301

All complaints shall be reported to a COR by the Government representatives with minimum rank 304 of O-5 or GS-14 equivalent. PCO determination of the validity of complaint will be final. Criterion 305 to earn the performance incentive in this area is listed below: 306

A) 0 valid complaints – 1.50% of the performance incentive pool 308 B) 1 valid complaint – 1.25% of the performance incentive pool 309 C) 2-3 valid complaints – 1.00% of the performance incentive pool 310 D) 4-5 valid complaints – 0.5% of the performance incentive pool 311 E) More than 5 valid complaints – 0% of the performance incentive pool 312

2. Innovative Solutions 314 The Government defines innovation as any effort which significantly improves a process, 316 methodology, or staffing mechanism that results in reduction to cost, schedule, or enhances 317 performance. 318 The Contractor shall provide a list, no later than two weeks prior to expiration of the base and 320 option year, of all action(s) that they have accomplished during the period of performance that they 321 perceived to be innovations. 322 The Contractor’s input will be sent to the Government customers for validation through a survey of 324 all Government customers (O-5 or GS-14 equivalent or higher Government employee) on the 325 contract. Government customer validation must be obtained prior to considering any Contractor 326 input as innovation. 327 The survey method and documentation of the results shall be at the discretion of the Government. 329 The Government will have unilateral authority to determine if the Contractor’s effort resulted in an 330 innovation. Criterion to earn the performance incentive in this area is listed below: 331

A. More than 5 innovations – 1.50% of the performance incentive pool 333 B. 4 – 5 innovations – 1.25% of the performance incentive pool 334 C. 2 – 3 innovations – 0.75% of the performance incentive pool 335 D. 1 innovation – 0.25% of the performance incentive pool 336 E. 0 innovations – 0% of the performance incentive pool 337

7.4 Option Period Incentive Criteria 339

Prior to the exercise of each of the yearly option periods, the Government may unilaterally establish 341 incentive criteria different from the above-listed incentive criteria. After the exercise of each of the 342 yearly option periods, the Government may propose for bilateral modification incentive criteria that 343 differs from the above-listed incentive criteria. 344 Incentive for all Option periods are expected to be consistent with the above with the exception of 346 the FOC Performance criteria. 347

Incentive Area (Option Years) Percentage Total Percentage of CPFF CLINS

7.1 Compromised Information

Incidents

100%-0% of the Earned Incentive NTE 7%

7.2 Staffing Stability NTE 4% Total

Key personnel retention NTE 2% Non-key personnel retention NTE 2%

7.3 Customer Satisfaction Ratings NTE 3% Total

Validated formal complaints NTE 1.5% Innovation NTE 1.5%

8.0 SURVEILLANCE METHODS 350

8.1 Surveillance 352

The Government may inspect and evaluate, up to 100%, the Contractor’s results and overall 353 performance to determine acceptability. 354

8.2 Customer Comment: 356

A customer is defined as supported Government organizations/units. Any customer that observes 357 unacceptable services, either incomplete or not performed, for any of the above performance 358 objectives should immediately contact the SMC/ECL, 30th OG and 45th OG Program Manager. 359 Customer comments and complaints will be considered in assessing the appropriate performance 360 incentive earned by the Contractor. 361

8.3 Third Party Audits: 363

Contractor evaluation by a third party organization that is independent of SMC/ECL (i.e. DFAS, 364 DCAA, DCMA) will be considered in assessing the appropriate performance incentive earned by 365 the Contractor. All documentation supplied to, and produced by, the third party should be made 366 available to SMC/ECL by the third party. 367

9.0 INCENTIVE PAYMENT DETERMINATION 369

Incentive payments shall be made at the end of the base or option periods in accordance with the terms of 371 this performance incentive plan. The Contractor shall submit a written statement to the PCO justifying any 372 potentially earned performance incentive. This statement should include all applicable evidence needed for 373 the Government to determine if the Contractor has met the performance incentive plan. 374 In the event the Contractor satisfied all of the of the incentive criteria, the full performance incentive amount 376 shall be earned. If, due to factors beyond the Contractor’s control or factors that might otherwise contribute 377 to a schedule delay and the Contractor is unable to meet any of the criteria, the Contractor shall document 378 such situations in writing to the SMC/ECL PCO and PM. The PCO will consider the Contractors written 379 justification and determine if the justification warrants that the Contractor will not be penalized. 380 After considering all criteria noted in this performance incentive plan and inputs from the PM, PCO, IRO, 382 germane Contractor written reports, and other relevant information, the IAO will unilaterally determine 383 whether the Contractor met or failed to meet the criteria established herein. Within ten (10) business days 384 of the PCO’s receipt of the IAO’s determination, the PCO will issue: (1) a contract modification obligating 385 the appropriate amount of incentive or (2) issue formal notification to the Contractor advising of 386 SMC/ECL’s determination. 387

10.0 PERFORMANCE INCENTIVE PLAN CHANGE PROCEDURE 389

Prior to the exercise of an option period, SMC/ECL may unilaterally change any provision of the 391 performance incentive plan. The decision to change the incentive criteria shall not be subject to the Disputes 392 Clause or the Contract Disputes Act. All substantive changes to this performance incentive plan following 393 the exercise of an option period shall be via bilateral modification of the contract. 394

11.0 TERMINATION 397

Termination for Cause will be governed by FAR Clause 52.249.6, Termination (Cost-Reimbursement). 399 Upon Termination for Cause, SMC/ECL will not pay an incentive for partially completed criteria. 400 In the event SMC/ECL terminates this contract for convenience, the Contractor shall submit a Termination 402 Proposal subject to negotiation and agreement of the parties. Any incentive payment determinations made 403 by the IAO prior to the termination for convenience shall not be affected by the termination for convenience 404 decision. 405

ANNEX A– CONTRACTOR PROPOSED PERFORMANCE INCENTIVE 407

The Offeror shall complete tables for the base period and each option period and insert the information in 409 paragraph 6 of this incentive plan. 410 Base Period Pool 412 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0100-0105): $____________ 414

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 1 Pool 418 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0200-0205): $____________ 420

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 2 Pool 425 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0300-0305): $____________ 427

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 3 Pool 432 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0400-0405): $____________ 434

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 4 Pool 439 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0500-0505): $____________ 441

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 5 Pool 446 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0600-0605): $____________ 448

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 6 Pool 453 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0700-0705): $____________ 455

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 7 Pool 459 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0800-0805): $____________ 461

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 8 Pool 466 Total Estimated Cost (excluding cost of money) (CPFF CLINs 0900-0905): $____________ 468

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Option Year 9 Pool 473 Total Estimated Cost (excluding cost of money) (CPFF CLINs 1000-1005): $____________ 475

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Performance Incentive for Extension of Services Period Pool 480 Total Estimated Cost (excluding cost of money) (CPFF CLINs 1100-1105): $____________ 482

Incentive Criteria

Incentive Criteria Weighting Percentage not to be exceeded by Offeror

Incentive Criteria Weighting

To be Proposed by Offeror

Incentive Criteria (Calculated by multiplying the Weighting by the Incentive Pool)

Staffing Stability 4% **_____% **$______

Customer Satisfaction Ratings

3% **_____% **$______

Total 7% **_____% **$______

Sample Performance Incentive Calculation: 487

Incentive Criteria Incentive Criteria

Weighting Percentage (Max Pool %)

Incentive Criteria Pool (Max Pool $)

Example % Pool Earned (met defined criteria)

Example Performance

Incentive Earned

7.1 Compromised

Information Incidents

100%-0% of the Earned Incentive N/A 80% of the Earned

Incentive N/A

7.2 Staffing Stability

Total 4% Total $400K

3.5% $350K

(75% of Total)

FOC 1% $100K 1% $100K

Key Personnel 1.50% $150K 1% $100K Non-Key Personnel 1.50% $150K 1.5% $150K

7.3 Customer

Satisfaction Ratings

Total 3% Total $300K

3% $300K

(100% of Total)

Valid Complaints 1.50% $150K 1.50% $150K Innovative Solutions 1.50% $150K 1.50% $150K

Total Earned Incentive 7% $700K 6.00% $650K

Total Incentive after accounting for 7.1 80% X 500K = $520K $520K

Assumptions: Total incentive pool is $700K, the Contractor earned 87.5% in 7.2 and 100% in 7.3 and has 490 one compromised information incident which reduced total incentive to 80% of the earned incentive. 491 Therefore, the Contractor earned $520K for this incentive period. 492