Attachment_03_-_SAOSS_Objective_Performance_Incentive_Plan.docx

UNCLASSIFIED

FOR OFFICIAL USE ONLY

Space Superiority Systems Directorate (SY) Specialized Acquisition and Operations Security Support (SAOSS) Services

OBJECTIVE PERFORMANCE INCENTIVE PLAN

CONTRACT # FA8819-18-C-0010

Approved By:

SMC/SY Program Director

Revision History

1 INTRODUCTION

In addition to fixed fee described elsewhere in the contract there are Objective Performance Incentives that the contractor can earn. The available Objective Performance Incentives shall be in addition to the fixed fee and the plan is described herein.

The goal of this SAOSS Incentive Plan is to ensure sustainment services result in acceptable or above acceptable levels of performance. This plan provides the policies and procedures used to determine the objective performance incentive fee. This Incentive Plan is applicable to the Fixed Fee Contract Line Item Numbers (CLIN) used in the execution of the SAOSS contract.

The SAOSS contractor’s overall total Objective Performance Incentive percentage shall not exceed 5% of the estimated cost that excludes the Cost of Money, Travel, and ODCs. This document will demonstrate how the total incentive pool is broken down into its component parts and how those parts are calculated.

This incentive plan is applicable to sustainment services under CLINs 0001 through 0020 and the applicable option periods.

2 GOAL

There are four goals to this plan which are derived from the purpose mentioned above:

A. Ensure Timely Hiring: Filling a vacant position within a specified time

B. Limit Key Position Turnover: Ratio of specific positions that must be filled with minimal coverage gaps

C. Limit rate of Overall Position Turnover: Ratio of all position turnover including key positions

D. Security Incident Factor: Reduced security incidents

3 INCENTIVE STRUCTURE AND INCENTIVE PERIOD

The total objective performance incentive pool shall not exceed a total of 5% of the estimated cost that excludes the Cost of Money, Travel, and ODCs. The allocation of percentages are shown in Figure #1. Additionally, the performance incentive pool will be broken down into four (4) components: Timely Hiring, Critical Position Turnover Rate, Turnover Rate, and Security Incident Factor. The four (4) proposed components shall not exceed 2%, 1.5%, 1%, and 0.5%; respectively. The Objective Performance Incentive is designed to achieve the Goals in Section 2.0.

Objective Performance Incentive Fee

Timely Hiring Not to Exceed 2%

Critical Position Turnover Rate Not to Exceed 1.5%

Turnover Rate Not to Exceed 1%

Security Incident Factor Not to Exceed 0.5%

Figure #1 – Objective Performance Incentive Components

4 FREQUENCY OF INCENTIVE PAYMENT DETERMINATION

The performance incentive pool will be calculated and paid annually. Determination will be made in accordance with paragraph 7 of this plan.

5 INDIVIDUAL AND ORGANIZATIONAL RESPONSIBILITIES

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

5.1 Incentive Approving Official (IAO):

SMC/CC will serve as the IAO of this Incentive Plan. Following initial approval, SMC/CC delegates authority for the Incentive Plan to the Director of the Space Superiority Directorate (SMC/SY). The delegation authorizes SMC/SY to approve any subsequent revisions to the plan.

5.2 Incentive Reviewing Official (IRO)

Chief of the Security Division, Space Superiority Systems Directorate (SMC/SYS) will serve as the IRO. The IRO shall review the Contractor’s report(s) to ensure compliance with this plan. The IRO provides a recommendation to the ICO concurring that the criteria of this plan have been met or non-concurring and providing rationale for their non-concurrence.

5.3 Incentive Certifying Official (ICO):

SMC/SY will serve as the ICO. The ICO reviews the IRO recommendation and determines approval/non-approval of the performance incentives based on the compilation of pertinent data affecting the Contractor’s performance in meeting performance incentive criteria.

5.4 Procurement Contracting Officer (PCO):

The PCO is the liaison between the Contractor and government personnel and executes the IFP. The PCO prepares and distributes contract funding modifications obligating the appropriate amount of incentive fee earned by the Contractor, and maintains appropriate incentive assessment documentation as part of the official government contract file. The PCO will determine if changes to the plan are substantive or non-substantive. The PCO approves all non-substantive changes to the plan. The IAO approves all substantive changes to the IFP.

5.5 Performance Monitors:

The SAOSS Program Manager will provide oversight to the performance monitors throughout the evaluation period. Each Government program/project manager will be assigned as a performance monitor for their specific area of expertise. The performance monitor will compile and maintain records of the contractor’s performance throughout the evaluation period.

6. INCENTIVE POOLS

Reference Attachment A to this plan on instructions to complete. When completing, offerors shall only include the Cost Plus Fixed Fee CLINs (excluding cost of money) (XX01-XX20) and exclude any cost reimbursement items.

Pool Security Incident Factor Pool Total Available Pool

7 INCENTIVE CRITERIA

7.1 Objective Performance Incentive

The Objective Performance Incentive is comprised of the four (4) service summary entries, identified in table 1 below, which will be used to incentivize the Contractor to achieve the Goals in section 2 of this plan. The four (4) service summaries, their relative weights, and their associated maximum fee percentage (relative to the estimated cost) are shown in Table 1.

Table 1: Service Summaries and Weights

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Weighting by the Service Summary Pool)

* Not to Exceed Estimated Percentage ** To be completed by Contractor

The evaluation criteria for each service summary is shown in Table #2. Failure to meet the criteria in one section, applies only to that section. All sections stand as independent criteria with the exception of a security violation reference paragraph 7.2.

Table 2: Service Summary Evaluation Criteria

*Note: There cannot be any security violations, if a security violation occurs the incentive value will be set to zero for all areas.

7.2 Security Violation

The Contractor will receive zero Objective Performance Incentive Fee for any year in which a fully adjudicated security violation is attributed to one of their employees on this contract, in the event of a security violation in accordance with the PWS, para 6.1.1. In the event that a security incident has not be fully adjudicated by the cognizant security authority in the year of performance, any incentive is withheld until a final determination has been made as to the severity of the incident (infraction versus violation).

7.3 Methods of Surveillance That May Be Used

7.3.1 Surveillance: The Government may inspect and evaluate, up to 100%, the contractor’s results and overall performance to determine acceptability.

7.3.2 Periodic Surveillance: The Government will inspect and evaluate the contractor’s results and overall performance every month to determine contractor’s overall performance.

7.3.3 Customer Comment: A customer is defined as supported government organizations/units. Any customer that observes unacceptable services, either incomplete or not performed, for any of the above performance objectives should immediately contact the Government Program Manager (GPM) via e-mail. A meeting with the contractor will follow to address the complaints and review the proper procedures within the PWS. If a deficiency is observed, a Customer Complaint Record (in memo format acceptable) shall be annotated and forwarded to the GPM and PCO on the day of the infraction. If the deficiency requires immediate correction, a phone call may be necessary. When a complaint is received, the GPM validates the complaint by checking the PWS. The GPM must evaluate the complaints on a case-by-case basis. If any Government action or lack of action caused unacceptable performance, the complaint is not valid. If further action is required, the GPM will follow up with necessary corrective actions. At the end of each month, the Customer Complaints are attached to the Certificate of Services and forwarded to the PCO. All validated complaints will be counted to determine if performance is acceptable or unacceptable.

7.3.4 Third Party Audits: contractor evaluation by a third party organization that is independent of the Government (i.e. DFAS, DCAA, DCMA) and the contractor. All documentation supplied to, and produced by, the third party should be made available to the government by the third party.

8 INCENTIVE PAYMENT DETERMINATION

When the Contractor believes that it has successfully completed all applicable success criteria for a period, the Contractor shall provide a written statement to the PCO. This statement shall address each criterion with evidence of successful completion. If, due to factors beyond its control or which otherwise might contribute to a schedule delay, the Contractor is unable to satisfy any criteria, then it is incumbent upon the Contractor to document such situations in writing to the Government pursuant to paragraph 6.1 above.

Within twenty (20) working days of receipt of the Contractor’s written statement, the IRO will assess whether or not the Contractor has successfully met the success criteria and provide the findings in writing to the ICO. The ICO shall unilaterally determine the amount the Contractor earns, if any. Within ten (10) working days of the PCO’s receipt of the ICO’s written determination, the PCO will issue; (1) a contract modification obligating the appropriate amount of incentive, and/or (2) issue formal notification to the contractor advising of the government’s determination.

9 INCENTIVE EARNED

Table 3: Incentive Earnings

Mod # and Date

10 INCENTIVE PLAN CHANGE PROCEDURE

All substantive changes to this incentive plan shall be by bilateral modification of the contract, signed by both the Contractor and the Government.

11 TERMINATION FOR CONVENIENCE

In the event the contract is terminated for the convenience of the Government, the Contractor shall submit a Termination Proposal subject to negotiation and agreement of the parties. Any incentive payment determinations made by the IAO prior to the termination for convenience shall not be affected by the termination for convenience decision.

Attachment A to Attachment 3

Offeror shall complete tables for each option period and input Service Summary Pools in paragraph 6 of this incentive plan.

OPIP Pool for Base Year (XX01-XX20):

Total Estimated Cost (excluding cost of money) (All CPFF CLINs) : $____________

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 01 (XX01-XX20):

Total Estimated Cost (excluding cost of money) (All CPFF CLINs) : $____________

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 02 (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 03 (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 04 (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 05 (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 06(XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 07 (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 08 (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for Option Year 09 (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

OPIP Pool for six month option (XX01-XX20):

(as percentage of Service Summary Pool) Estimated Percentage not to be exceeded by Offeror Service Summary Weighting (as percentage of Service Summary Pool) To be completed by Offeror Service Summary Pools (Calculated by multiplying the Service Summary Weighting by Total Estimated Cost)

FA8819-18-C-0010, Attachment 3