Attachment_L-6_CLIN_MPS_IMS_Guidance_Template_and_SubCLIN_Structure_revised_121312.doc

FA8903-12-R-0033

Attachment L-6

Supplemental Instructions to Offerors for the Development of Contract Line Item Number (CLIN) Structures/

Milestone Payment Schedules (MPS)/Integrated Master Schedules (IMS) This guidance is being provided to communicate Air Force expectations for the development of CLIN/Sub-CLIN Structures and the correlation with the subsequent development of the MPS and the IMS. This guidance is not intended to remove Contractor flexibility. The examples provided are for illustration purposes only and are not intended to be inclusive of all acceptable approaches.

When annual Congressional appropriations provide the basis for sourcing these contracts, special consideration must be given to ensure compliance with funding rules concerning period of availability, bona fide need and purpose as they relate to each year of funding applied. This will ensure milestones are developed that support fiscally responsible use of funds. To ensure compliance when establishing milestones, any contingent events that affect the beginning date of any milestone must be considered. Key to proper use of funds in this context is non-severability. A non-severable deliverable is defined as a deliverable item that represents a single end product or undertaking, entire in its nature, that cannot be feasibly subdivided into discrete elements or phases without losing its identity. Milestones must have a clear delineation of final deliverables, as distinct non-severable options to be fully funded in the fiscal year in which the award of the Sub-CLIN is made, even though the performance may extend into future fiscal years. There is no administrative reservation of funds whatsoever until a determination is made to exercise a separate and non-severable Sub-CLIN. Each non-severable Sub-CLIN will be funded in its entirety with funds current at the time the Sub-CLIN is exercised, and any need for prior year funds in the future will be clearly tied back to the specific non-severable Sub-CLIN and associated well defined requirement(s) and associated deliverable(s).

CLIN AND SUB-CLIN STRUCTURE:

CLINs are identified in the contract. A CLIN should be done for each site and one for the Program Management Plan. Sub-CLINs provide a means for funding economically or programmatically viable stages by identifying the items or activities to be acquired as non-severable contract deliverables (performance objectives). The performance period for the Sub-CLIN may be for more than one, but not more than five fiscal years. Sub-CLINs shall provide a firm fixed price for separately identifiable contract deliverables (performance objectives). Each Sub-CLIN shall have its own performance objective expressly stated. Sub-CLINs should identify remediation objectives or activities that relate directly to, and are an integral part of, the CLIN. For example:

· Achieve [performance objective] for [site number]

Sub-CLIN prices and completion dates must not exceed the value or completion date of the CLIN. Sub-CLINs cannot be partially exercised and must be fully funded when exercised in order to avoid violations of the Anti-Deficiency Act. The use of Sub-CLINs provides the Air Force with the flexibility to match options to be exercised with available funding as the amount of available program funding is sometimes unpredictable. The Air Force may restructure the Sub-CLINs with the Apparent Successful Offeror based upon the submitted MPS.

Sub-CLINs shall consist of numeric digits and alpha characters. Once a Sub-CLIN number has been assigned, it shall not be assigned to another Sub-CLIN in the same task order. Under the contract the numeric digits for the CLIN on Performance-Based Remediation (PBR) task orders shall begin with 0001and so forth. Only 24 alpha characters shall be used in the second position before selecting a different alpha character for the first position. Alpha characters I and O should be avoided due to the potential for confusion with numeric digits 1 or 0. The Sub-CLINs must use AA, AB, AC, through AZ before beginning BA, BB, and BC. For example, if the CLIN number is 0001, the first three Sub-CLIN items would be 0001AA, 0001AB, and 0001AC. Each Site should have its own CLIN. For example:

· 0001AA Performance Management Plan

· 0002AA Achieve [performance objective] for [site A]

· 0002AB Achieve [performance objective] for [site A]

· 0003AA Achieve [performance objective] for [site B]

· 0003AB Achieve [performance objective] for [site B]

MILESTONE PAYMENT SCHEDULE:

The Contractor shall propose milestone payments as part of the MPS in its proposal. The Air Force intends to use the Contractor’s proposed MPS to restructure Sub-CLINs, if necessary, to align with projected available funding prior to award. The MPS shall also be included as part of the Project Management Plan (PMP). The MPS is not included in the task order and is not considered final with award of the task order. Changes made to the MPS prior to award are used to finalize the Sub-CLINs, therefore, award of the task order does not equate to final acceptance of the MPS. The MPS will be negotiated during development of the PMP and may require additional changes.

Milestone payments shall be based on the completion of a definable and measurable step considered integral and necessary to the achievement of the performance objective/Sub-CLIN. Completion of milestones shall demonstrate payment is appropriate. Milestone payments shall include the approval requirements in accordance with the performance standards in Table 1 of the Statement of Objectives (SOO) and the requirements of the regulatory structure. Terms of acceptance of milestone payments will be negotiated during development of the PMP.

A consolidation of completed milestone payments is to be submitted monthly, however milestone payments shall not represent a “progress” payment or a “monthly” payment for level of effort expended. In addition, milestone payments shall not include management or overhead type costs (program/project management, monthly reporting, mobilization/demobilization, etc.) that do not provide measurable project advancement. For any performance objective, a milestone payment shall be for completion of a definable and measurable point considered integral and necessary to completion of the performance objective. For example, if the performance objective is to achieve Remedy-in-Place (RIP) and the work required to achieve RIP includes Feasibility Study (FS), Proposed Plan (PP), Record of Decision (ROD), Remedial Design (RD), and Remedial Action (RA), then potential interim milestone payments could be:

· Air Force approval of Draft FS;

· Air Force and Regulator approval of Final FS;

· Air Force approval of Draft PP;

· Air Force and Regulator approval of Final PP;

· Air Force approval of Draft ROD;

· Air Force and Regulator approval of Final ROD;

· Air Force approval of Draft Remedial Action Work Plan (RAWP)/RD;

· Air Force and Regulator approval of Final RAWP/RD;

· Air Force approval of Remedial Action Completion Report (RACR);

· Air Force and Regulator approval of Final RACR signifying achievement of RIP.

Contractor proposed milestone payments for Air Force approval of draft documents require sufficient funds to remain associated with the final document to ensure completion of the performance objective. Milestone payments shall not exceed 80% of the total payment for that Sub-CLIN prior to achievement of the final deliverable (performance objective). The Sub-CLIN’s final deliverable may include the combination of the draft and final versions. The final Sub-CLIN milestone for each site must be a minimum of 20% of the total Sub-CLIN cost. Air Force acceptance of Contractor proposed draft milestones, or the proposed percentage of the milestone payment as compared to the total payment for that Sub-CLIN, is discretionary and negotiated on a case-by-case basis between the Air Force and selected Offeror. These negotiations may occur prior to award and/or during development of the PMP.

The Air Force will use performance indicators and performance models in addition to the PMP to establish and execute a Surveillance Plan. The Surveillance Plan will highlight key quality control activities or events. The Contracting Officer’s Representative (COR) will use the Surveillance Plan to determine when Air Force (COR and/or Contracting Officer (CO)) surveillance activities can be conducted to assess progress toward and/or completion of milestone payments.

INTEGRATED MASTER SCHEDULE:

The Contractor shall prepare and submit an activity-based IMS that is consistent with the MPS. The Contractor must include and identify all performance milestones at the appropriate level of detail and logically sequenced to support and manage achievement of the proposed performance objectives. The IMS shall identify completion of the performance objectives in the time designated and shall include identification of any critical path items. The IMS shall include incorporation of Air Force and Regulatory review periods for deliverables while meeting or exceeding any applicable agreements or regulatory schedule requirements.

Sites associated with each milestone/task must be noted in the schedules using the Site IDs and referencing all site aliases noted in Table 1 of the SOO. The schedule shall be provided in hardcopy and electronic format consistent/compatible with Air Force software, currently Microsoft( Project, Microsoft( Excel, and in Adobe Acrobat portable document file (.pdf). Updated and revised schedules shall be submitted with monthly status reports with changes clearly identified by the Contractor.

An example illustrating the progression of CLIN/Sub-CLIN Structure to MPS and IMS follows:

EXAMPLE CLIN/SUB-CLIN STRUCTURE

(Air Force approval required prior to Contract Award)

EXAMPLE MILESTONE PAYMENT SCHEDULE

(Negotiated between the Air Force and the selected Offeror and approved by the Air Force)

Air Force Approval of Draft FS

Air Force and Regulatory Approval of Final FS

Air Force Approval of Draft ROD

Air Force and Regulatory Approval of Final ROD

Air Force Approval of Draft Remedial Action Work Plan/Remedial Design

Air Force and Regulatory Approval of Final Remedial Action Work Plan/Remedial Design

Air Force Approval of Draft RACR

Air Force and Regulatory Approval of Final RACR signifying achievement of RIP

Note: Payment milestone shall not exceed 80% of the total payment for the CLIN/Sub-CLIN prior to achievement of the final deliverable. In the example above, 80% of $200,000 = $160,000; therefore, RACR (draft + final) = $40,000 or 20% of the Sub-CLIN 0002AA. Air Force approval of the "Draft" is defined as Contractor resolution of Air Force comments on the Draft deliverable.

EXAMPLE Integrated Master Schedule (Air Force approval required as part of the PMP)

Note: Air Force surveillance activities precede all milestone payments.

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[additional Sub-CLINs beyond minimum performance objectives to be proposed consistent with the contractor's approach]

*NOTE: If additional Sub-CLINs are created prior to award pursuant to Sub-CLIN restructuring, some or all could be re-numbered to be sequential

**Projected Dates of Exercise are the anticipated award dates for the Sub-CLINs, but will be subject to the availability of funding and to the bona fide needs rule. Note that prior to task order award, the Government may restructure the Sub-CLINS based on the Offeror's proposal.