SE I award term plan.pdf

FA8811-10-C-XXXX

Attachment 4

DRAFT AWARD TERM PLAN

FOR

LRSW SE&I SERVICES

4 Mar 2009

Date of Approval:

Contractor:

APPROVED:

Award Term Approving Official

1. INTRODUCTION 3

2. GENERAL 3

3. PURPOSE 3

4. OBJECTIVES 3

5. INCENTIVE AWARD TERM REVIEW TEAM 3

6. ELIGIBILITY EVALUATION 5

7. AWARD TERM PROCEDURES 6

8. AWARD TERM INTEGRITY 8

AWARD TERM Eligibility FORM 9

ANNEX 1 10

ANNEX 2 11

AWARD TERM PLAN

1. INTRODUCTION

1.1 This Award Term (AT) Plan (hereinafter referred to as the “Plan”) serves as the charter which will be used to determine whether the incentive award term (hereinafter referred to as the “award term option” or “term”) will be granted. The Launch and Range Systems Wing (LRSW) requires top-level performance to meet program requirements. Hence, this Award Term plan is designed to provide an additional incentive to the contractor for Good quality performance that will benefit

LRSW.

1.2 The intent of this plan is to provide criteria and process for awarding Award Term

Periods: (1) using the contractor's performance during evaluation periods as referenced in paragraph 6.1 and the contract; and (2) furnishing sufficient data to enable the Award Term Approving Official to determine whether the award term will be granted.

2. GENERAL

2.1 Through this plan, LRSW seeks to provide additional incentives for the contractor to perform at a level LRSW considers Good. The award term will only be exercised if overall performance is assessed at a Good level in meeting contractual requirements. The basis for this determination are set forth in paragraph 6.2.

3. PURPOSE

This plan and the specific contract provisions shall serve as a guide to LRSW personnel directly involved in the process of determining incentive Award Terms based upon assessments of contractor eligibility.

4. OBJECTIVES

The objective of this award term feature is to incentivize contractor performance in the areas delineated in the Performance Plan. Therefore, the contractor should emphasize these areas in its performance of this contract.

5. INCENTIVE AWARD TERM REVIEW TEAM

5.1 Organization

The organization of the Team is described in the following paragraphs.

5.1.1. Award Term Approving Official. The Award Term Approving Official is SMC/CV.

5.1.2. Incentive Award Term Review Team membership. The Award Term Approving Official will appoint a Team to assist in assessing the contractor's performance evaluations (Performance Plan, CPARS, and other inputs as available) to determine eligibility for each incentive Award Term. The Award Term Approving Official may appoint a Chairman to the Team or the Award Term Approving Official may serve as the Chairman. The team members will ensure a fair and accurate assessment of the contractor's performance evaluations for the period being evaluated. The Team Chairman may also use non-voting advisors as necessary.

5.2 Duties of the Team.

The duties of the Team are as follows:

5.2.1. Implement the plan and propose timely modifications to the Plan if required, throughout the period of contract performance.

5.2.2. Assess contractor eligibility for the granting of an Award Term based upon the contractor’s performance evaluations for prior evaluation periods.

5.2.3. Prepare and submit to the Award Term Approving Official a written evaluation of the contractor's eligibility.

5.3 Responsibilities.

5.3.1. Award Term Approving Official (ATAO). Approves the award term plan and the evaluation areas and scoring methodology. Approves the composition of the Team. Determines whether the award term period will be granted based on the eligibility assessments of the team along with other inputs as applicable. Advises the contractor in writing of interim annual evaluation results and award term decision and documents the basis for the decision.

5.3.2. Team Chairman. Structures the Team membership to provide representation that reflects all appropriate aspects of contract performance and provides membership to adequately assess whether contractor’s performance evaluations prior to each Award Term decision point meet the criteria for consideration of an award term incentive. Conducts the assessment evaluations under this plan. Schedules Team meetings and assigns a recorder at these meetings. Leads the team in developing a consensus evaluation and in resolving significant differences in ratings.

Provides brief summary documentation for the Award Term Approving Official. May provide feedback to the contractor in order to focus the contractor on areas that would lead to improved performance in subsequent periods as specified in the performance plan.

5.3.3. Incentive Award Term Review Team (IATRT). Assesses contractor Performance using the FAE/COR monthly reports and quarterly letters for AT period(s) utilizing the criteria set forth in the plan. Makes written assessment evaluations, completes the evaluation worksheets (Award Term Eligibility Form- see attachment) and formulates award term recommendations. The assessments will be based upon the evaluations from the LRSW SE&I Performance Plan. Briefs the Award Term Approving Official on evaluations, when requested, and provides supporting data/documentation to support the assessment of performance. Prepares the evaluation report and accompanying narrative justification. Identifies potential improvement areas and areas of emphasis for the next succeeding evaluation period to the Team Chairman for later contractor debriefing.

5.3.4. Contracting Officer. Prepares and distributes contract modifications awarding the term authorized by the Award Term Approving Official.

Maintains term documentation as part of the official contract file. Retains historical files and other documentation relating to term matters for the contract.

5.3.5. Recorder. The recorder is a non-voting member of the IATRT and is responsible for coordinating the administrative actions required by the performance monitors, the IATRT and the ATAO, including: 1) receipt, processing and distribution of evaluation inputs from all required sources; 2) scheduling and assisting with internal evaluation milestones, such as briefings; and 3) accomplishing other actions required to insure the smooth operation of the award term process.

6. ELIGIBILITY EVALUATION

6.1 Performance Evaluation Periods

6.1.1. Assessment of eligibility for each performance evaluation period, as identified in the Performance Plan, will be reviewed at years 2, 3, 4, 5, and 6 with years 3 and 6 being AT Option Decision Points . Performance reviews will be held in accordance with the schedule at the clause of the contract entitled “Award Term." LRSW shall evaluate the contractor's eligibility based upon contractor performance in achieving contract requirements for the AT term periods below:

AT Option period Period Of Performance (Contract year)

AT TERM Period 1

5 1 Oct 13 - 30 Sep 14 6 1 Oct 14 - 30 Sep 15 7 1 Oct 15 - 30 Sep 16

AT TERM Period 2

8 1 Oct 17 - 30 Sep 18 9 1 Oct 18 - 30 Sep 19

10 1 Oct 19 - 30 Sep 20

6.1.2. An interim AT assessment of the contractor’s performance is accomplished approximately mid-way through each AT evaluation period.

An AT interim period of performance letter is sent to the contractor advising them of their strengths and areas for improvement. Additional letters may be sent as required.

6.2 Scoring for Award Term Eligibility

6.2.1. To be eligible for the award term entitlement, the evaluation team’s consensus scoring as discussed in Step 2 of Para 7.1.1 and 7.1.2 shall result in a score of Good (at least 81 pts in Good column) or higher based on the 6 evaluation areas using Annex 2 weights for the annual evaluation period immediately preceding the AT decision point . This eligibility score may be adjusted after the basic year in recognition that efforts to start and transition into the contract may result in a lower score in the first year. If any individual factor is scored Marginal or lower, the contractor may not be eligible for the award term. If Performance evaluation factors areas are added/changed in future periods, the Performance plan will be revised accordingly—the contractor must earn higher than satisfactory scores on the majority of performance evaluation factor areas.

6.2.2. The Award Term Plan evaluation factors will be weighted in accordance with Annex 2 to this Plan.

6.3 PLAN CHANGE PROCEDURES

The Government reserves the right to unilaterally change this Award Term Plan as necessary up to 30 days prior to the beginning of an AT evaluation period. If the PCO does not give specific notice in writing to the contractor of any changes to the weights of the Performance Plan evaluation areas prior to the start of a new evaluation period, then the allocated weights for the preceding period will be used in the next award term evaluation period. Changes in area weightings will be made by revising ANNEX 2 to this plan to apply prospectively, and by the PCO advising the contractor in writing prior to the start of the evaluation period. Subsequent to the commencement of a period, changes may only be made by mutual agreement of the parties.

7. AWARD TERM PROCEDURES

7.1 Step-by-Step Procedures Evaluation Periods

7.1.1 Interim Evaluation Periods

Step 1. Team members shall individually complete their evaluation worksheets (Award Term Evaluation Form) within 20 calendar days after the end of each interim evaluation period. Interim Award Term evaluations will be conducted at the end of the Contract Year 2, Year 4 and Year 5. Team members shall be prepared to brief their evaluations to the Chairman if necessary.

Step 2. The Team will develop a consensus eligibility assessment of contractor performance in the appropriate areas for the period, using the monthly surveillance reports and quarterly feedback reports. The Team shall review all LRSW SE&I Performance Plan evaluation material from the monthly FAE evaluation reports made during the evaluation period along with supporting documentation and may call additional technical and management advisors to provide supporting information as required. Recommendations of the Team, together with supporting justifications, shall be presented to the ATAO. The team shall additionally prepare a letter for the Award Term Approving Official’s signature documenting the contractor’s performance including strengths and weaknesses.

7.1.2 Award Term Evaluation Periods

Step 1. Team members shall individually complete their evaluation worksheets (Award Term Evaluation Form) within 20 calendar days after the end of each Award Term evaluation period. The first Award Term evaluation for eligibility will be conducted at the 2nd quarter of Contract Year 3 and again at the 2nd quarter of Contract Year 6 (see Figure 1 below). Team members shall be prepared to brief their evaluations to the Chairman if necessary.

Step 2. The Team will develop a consensus assessment of contractor AT eligibility in the appropriate areas for the AT period, using the using the monthly surveillance reports and quarterly feedback reports. The Team shall review all LRSW SE&I Performance Plan evaluation material from the monthly reports made during the AT evaluation period along with supporting documentation and may call additional technical and management advisors to provide supporting information as required. Recommendations of the Team, together with supporting justifications, shall be presented to the Award Term Approving Official for final decision on the contractor eligibility rating.

Eligibility assessment activities need to be completed at a point no later than 50 calendar days after the end of each AT period being evaluated in order for the AT decision to be made and announced no later than 90 days after the AT period being evaluated.

Step 3. No later than 10 calendar days after the Award Term Approving Official receives the Team’s recommendations, the Award Term Approving Official shall make a determination of the contractor's evaluation rating for the AT period. A brief summary narrative report highlighting contractor strengths and weaknesses shall be prepared. The announcement of Award Term Approving Official’s decision will be made no later than 90 days after the end of each period being evaluated as indicated in Step 4.

Step 4. The Contracting Officer shall provide the Award Term Approving Official notice or announcement to the contractor of the evaluation rating assigned. The notice shall be forwarded to the contractor not later 90 days after the end of the applicable AT evaluation period and the modification adding the award term entitlement will follow as soon as practicable following the notification.

In addition to the award term evaluations, the Award Term Approving Official will also consider, when making the award term decision, the annual Contractor Performance Assessment Report (CPARS) that were completed or is in the process of being completed on the contractor. Any inconsistencies between the award term assessment evaluation and the CPARS shall be addressed in the Award Term Approving Official’s narrative report and decision regarding the award term.

8. AWARD TERM INTEGRITY

The AWARD TERM process is recognized to be somewhat subjective in nature, but every effort will be made to assure fairness. The written records of the PMs, the inputs from other pertinent sources (e.g. DCAA, GAO, IG) and the contractor’s self-assessment (if provided) assist in providing the checks and balances necessary to assure AWARD TERM integrity.

The Contractor’s self assessment, at the discretion of the ATAO, may be presented as a briefing (limited to 35 minutes, maximum 50 slides) prior to 60 days after the end of the AT period or up to a 20 page written report submitted NLT 45 days after the end of the AT period.

Figure 1

1 2 3 4 5 6 7 8 9 10 Year

Contract Period

AT Decision 1

AT Decision 2

AT

ATATI

AT Option Decision Point

Interim AT EvaluationI

II

Contract Length

AT Decision 1 (Option Years)

AT Decision 2 (Option Years)

Option Years

- Contract Base Year

- Original Option Years

- AT Decision 1 Option Years

- AT Decision 2 Option Years

ATTACHMENT— 1

AWARD TERM Eligibility FORM

Contract: FA8811-10-C-XXXX

PREPARED BY:

Estimated Labor Hours (if applicable)

TERM PERIOD BEING ASSESSED FOR ELIGIBILITY:

Award Term Scores

ASSESSMENT AREAS UNSAT MARGINAL SATISFACTORY GOOD EXCEPTIONAL

Quality of Service

Schedule Cost Control Business Relations Management of Key Personnel Information Assurance and Security

*COMMENTS (Explain how Exceptional and Good ratings benefited LRSW)

AT TEAM MEMBER NAME Signature of AT TEAM MEMBER Date

ANNEX 1

INCENTIVE AWARD TERM REVIEW TEAM MEMBERS

Voting Members Office

LRSW/CC or CV(Chair) LRSW

LRSW/CD LRSW

LRRSW/EN LRSW

30th OG/CC 30th OG 45th OG/CC 45th OG Chief of Program Control LRSW/PC Procuring Contracting Officer LRSW/PK Staff Judge Advocate SMC/JA LRSW Chief of Contracting LRSW/PK

Non-Voting Member(s) or Advisor(s)

Aerospace Corporation General Manager AEROSPACE Aerospace Corporation Principal Director AEROSPACE Recorder LRSW/EN

ANNEX 2

The Award Term Plan evaluation areas will be weighted as follows for Award Term Eligibility:

Table 1 Award Term Plan Area Weights

Performance Plan Area (Para 2.2)

Weight pts

UNSAT MARGINAL SATISFACTORY GOOD EXCEPTIONAL

Quality of Service

Schedule 20 Cost Control 20 Customer Relations

Management of Key Personnel

Information Assurance and Security