Fairchild_SubCLIN_Overview_1Oct13_dm.pdf

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Overview of Sub-Contract Line Item Numbers (Sub-

CLINs) in PBRs

23 Oct 2013 Fairchild AFB PBR

Dan Miller, CALIBRE

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AF will utilize a Performance Work Statement (PWS) that identifies the agency’s overarching and site-specific minimum performance objectives (MPOs).

PBR Contractors will then propose the end state (or stretch goal) for each site to be achieved (in order of preference – see Section 1 of the PWS):

Site Closeout (SC) Response Complete (RC) Remedy in Place (RIP)

For all sites that do not achieve SC during the Period of Performance (POP) of this TO:

Conduct an Optimized Exit Strategy – some examples include: optimization studies, and implement solutions to enhance or replace existing treatment systems and monitoring networks; including reduced monitoring, contaminant removal and/or containment, and treatment efficiency.

What’s Different in the New AF PBR Initiative?

Note: Pay particular attention to the definitions of SC, RC and RIP in the Final RFP that you are proposing on! If there is uncertainty on a definition or any aspect of the RFP, please contact the Contracting Officer (CO).

Definitions – Site Closeout

Site Closeout (SC) – Signifies when the Air Force (AF) has completed all active management and monitoring at an environmental cleanup site. No additional environmental cleanup funds will be expended at the site and the AF has obtained regulatory concurrence.

For practical purposes, SC occurs when cleanup goals have been achieved that allow unrestricted use of the property (i.e., no further Long Term Management (LTM), including institutional controls, is required) and that all site decommissioning (ex. monitoring wells, treatment system infrastructure) has been completed.

Pitfall Examples:

Regulatory closure may not equal SC.

No Further Action (NFA) and/or No Further Remedial Action Planned (NFRAP) may not equal unrestricted use.

Simple requirements such as signage or five-year reviews required to ensure protectiveness (even if no monitoring is required) is equivalent to LTM – therefore when these are required, the site is at RC vs. SC.

Definitions – Response Complete and Remedy in Place

Response Complete (RC) –The milestone marking the achievement of all remedial action objectives of the final Decision Document (DD) and the termination of all Remedial Action Operations (RA-O).

Remedy in Place (RIP) – When a final remedial action, approved by the USAF has been installed (or active remediation initiated at the site) has been verified to be operating properly and successfully.

Pitfall examples:

A site in Monitored Natural Attenuation (MNA) that has not achieved specific target cleanup levels would be in RIP. Once target cleanup levels are reached and monitoring is required to ensure protectiveness is maintained (i.e., verification of no rebound), the site would be at RC.

A site that is implementing an interim remedy (i.e. not pursuant to a signed DD) does not satisfy the definition of RIP or RC.

Upon completion of RC, a site may still require Land Use Controls (LUCs) or Institutional Controls (ICs).

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AF will identify minimum performance objectives that all PBR Contractors must meet (referred to as Table 1 of the PWS).

Contractors will be required to propose an end point that is an optimum solution for the Government in the context of expected life-cycle costs beyond the POP for sites not achieving unrestricted SC during the task order POP (i.e. business case analysis).

Sub-CLIN examples provided in the RFP will reflect the minimum performance objectives only.

Contractors shall propose Sub-CLINs pursuant to their proposed end state to meet the MPO or stretch goals (i.e.

overarching objectives).

Minimum Performance Objectives

Table 1: Minimum Performance Objectives (MPO) Minimum Performance Objectives: Minimum Performance

Standards:

Achieve RC within four (4) years from Obligation Date for the following sites:

• LF001 – Waste Disposal South of Tower

• WP003 – Industrial Wastewater Lagoon System

• SS018 – Refueling Pit Area

• SS026 – Spill Site - Flightline

AF approval through the COR and Regulatory approval (e.g., written confirmation of acceptance of RC report).

Achieve Site Closeout (SC) within two (2) years from Obligation Date for the following sites:

• SS033 – SWMU-18 Solvent Storage at Building 2163

• SD034 – Contaminated Soil at Bldg.1012

• ST035 – Contaminated Soil at Bldg.

AF approval through the COR and Regulatory approval of unrestricted use of the site (e.g., written confirmation of acceptance of SC documentation).

Develop an OES to achieve SC and implement the elements of the approved strategy that fall within the POP for the following sites:

• LF002 – Craig Road Landfill

• FT004 – Former Fire Training Area

• ST010 – P-4 Pumphouse 8

Air Force approval of optimized exit strategy and Regulator concurrence with Air Force approved reports confirming implementation of the strategy (e.g. written confirmation of acceptance of documentation).

Business Case Analysis Business Case Analysis – Required for all sites, regardless of proposed end-state objective. Some examples are shown below:

SC is technically impracticable (e.g., contamination lies beneath structure or under an active runway or does not represent a lower life-cycle cost. (Note: For landfills, estimated cost of excavation is required)

RC is the optimal solution to the Government for this site because….

Pitfall examples:

Proposal states SC is cost prohibitive, but does not provide order of magnitude estimate for SC or otherwise quantify why selected end state is in Government’s best interest.

Business case analysis does not include post-POP costs for the non-SC alternative.

Business case analysis does not rule out other alternatives to approach SC more closely (i.e., propose RIP but do not demonstrate why RC was not proposed).

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What are Sub-CLINs?

Sub-CLINs provide a means for funding economically or programmatically viable stages by identifying the items or remediation services to be acquired as non-severable contract deliverables (i.e. performance objectives versus fiscal year).

Sub-CLINs shall provide a firm fixed price for separately identifiable contract performance objectives.

The performance period for the Sub-CLIN may be for more than one (1), but not more than five (5) fiscal years.

Performance period on Sub-CLINs is not the same as performance period in

Table 1 of the PWS (money expiration for Sub-CLINs vs. objective completion date per Table 1 of PWS).

Past performance may be judged by timeliness of completion per PWS Table 1.

CLIN/SUB-

CLIN CLIN/SUB-CLIN DESCRIPTION CLIN/SUB-CLIN

AMOUNT PROJECTED DATE OF EXERCISE

0015 SS018 – Refueling Pit Area

0015AA

Achieve Response Complete (RC) within four (4) years from Obligation Date At Award

0015AB

Mobilize and develop an optimized exit strategy to achieve SC and implement the elements of the approved strategy in an OES Implementation Plan that fall within the POP

Upon completion of 0015AA or upon CO determination of bona fide need

0015AC

Implement the elements of the approved optimized exit strategy in a Final Implementation Completion Report that fall within the POP

Approx. 2 years from 0015AB or upon CO determination of bona fide need

How are Sub-CLINs used?

Sub-CLINs should identify remediation objectives or activities that relate directly to, and are an integral part, of the CLIN.

Include separate Sub-CLINs for Project Management Plan (PMP –

Opening Phase and Closing Phase) and for Environmental Insurance (if used).

The sum of all Sub-CLIN prices and completion dates must not exceed the value or completion date of the CLIN. Milestone Payment Schedule (MPS) values and completion dates must not exceed the value or completion date of the individual Sub-CLIN.

Sub-CLINs cannot be partially exercised (e.g. must be fully funded at time of exercise or violates Anti Deficiency Act).

Because the amount of available program funding is unpredictable, the use of multiple Sub-CLINs provides the AF with the flexibility to match options to be exercised with available funding.

The Government may restructure the Sub-CLINs with Apparent Successful Offeror based upon the submitted MPS.

Example CLINs and Sub-CLINs

CLIN SUB‐CLIN CLIN/SUB‐CLIN/PAYMENT MILESTONE DESCRIPTION

CLIN/

SUB‐CLIN

AMOUNT

PROJECTED EXERCISE

DATE OR RATIONALE

0001 Project Management Plan (PMP) $250,000 0001AA Opening Phase Project Management Plan (PMP) $25,000 At Award

0001AB Closing Phase Project Management Plan (PMP) $25,000

Approx. 4.5 years from 0001AA or upon CO determination of bona fide need

0002 CG025 Management Unit $200,000

0002AA CG025 Management Unit: Achieve RIP in accordance with Table 1 of the PWS. $200,000 3rd Qtr FY14

CLIN (Yellow Row) = 4 digits

Sub‐CLINs (Green/Blue Rows) = 4 digits + 2 letters (started at AA, proceeding alphabetically to AZ, then BA through BZ, etc.) Note: The letters “O” and “I” are intentionally omitted, since they tend to be confused with the numbers “0” and “1”.

CLIN and Sub-CLINs are included in the awarded contract CLIN = Sum of all Sub‐CLINs

The PMP activities cover more than 5 FY’s, and therefore, are broken into more than one Sub‐CLIN. Be sure to include annual updates in your costs for each PMP Sub‐CLIN.

CLIN (Yellow Row) = 4 digits (each site has a separate CLIN number)

Obligation Date Obligation Date

Table 1 of the PWS establishes the timeframe for completion of performance objectives and often uses a specific duration of time from obligation date. (i.e. “Achieve RIP within two (2) years from obligation date”).

Obligation date in Table 1 of the PWS is equal to the date of the contract award for a Sub-CLIN, unless expressly stated otherwise by the CO.

Pitfall examples:

NTP for construction activities upon demonstration of bonding and obligation date for purposes of Table 1 of the PWS are not the same.

Obligation date starts with exercising the 1st Sub‐CLIN for site (0002AA)

CLIN/

SUB-CLIN CLIN/SUB-CLIN DESCRIPTION CLIN/SUB-CLIN

AMOUNT

PROJECTED DATE OF

EXERCISE TIMING LOGIC

0002AA CG025 Management Unit: Achieve ROD $60,000 At Award

0002AB CG025 Management Unit: Achieve RIP per Table 1 of the PWS $140,000

Upon Completion of 0002AA or upon CO determination of bona fide need

Optimized Exit Strategy (OES)

Sub-CLINs and milestones for OES are required for all sites that do not achieve SC during POP (i.e. OES is required upon reaching RIP or RC).

Milestone for AF Approval of an OES Plan is expected as one of the first deliverables under this objective. This can either be a separate document or incorporated into Work Plans. When OES is required because MPO is RIP or RC, OES plan shall be delivered one year after achieving RIP or RC.

The OES objective may include multiple Sub-CLINs to meet funding availability, not exceeding the five (5) fiscal year funding duration. Sub- CLINs may include specific non-severable activities depending upon proposed approach, or may consist of the following:

The first Sub-CLIN will be “Mobilize and Develop an OES” in which the final deliverable must be an OES Plan.

The second and subsequent Sub-CLINs will be “Implement an OES Strategy” in which the final deliverable must be an OES Implementation Completion Plan.

The last Sub-CLIN will be “Finalize an OES” in which the final milestone expected within the POP will be a Final OES Effectiveness Report.

Optimized Exit Strategy (OES)

CLIN/

SUB-CLIN CLIN/SUB-CLIN DESCRIPTION SUB-CLIN

AMOUNT

PROJECTED DATE

OF EXERCISE

0007 FT004 – Former Fire Training Area

0007AA

Mobilize and develop an optimized exit strategy to achieve SC and implement the elements of the approved strategy in an OES Implementation Plan that fall within the POP

At Award

0007AB

Implement the elements of the approved optimized exit strategy in an Final Implementation Completion Report that fall within the POP

Approx. 2 years from 0007AA or upon CO determination of bona fide need

0007AC

Finalize an optimized exit strategy to achieve SC and implement the elements of the approved strategy in a Final OES Effectiveness Report that fall within the POP

Approx. 3 years from 0007AB or upon CO determination of bona fide need

Performance Model - Defined

The Contractor shall develop a Performance Model that describes the expected course of the remediation process (i.e. how conditions are expected to change over time as measured using appropriate performance indicators from the current state until the response objective is achieved).

Predictive model indicating how concentrations and/or mass will be reduced over time, or how annual costs will be minimized over time with the proposed approach.

A conceptual model is due at the time of proposal

Detailed in work plans or equivalent during task execution

Intended to identify specific effectiveness metrics for milestone payment of the interim activities associated with the optimization approach.

Used to define payable metrics for proposed milestones.

Performance Model - Defined

Performance indicators, decision criteria, and performance models – associated terms with optimizing remedial efficiency, assessing how the remedial technology (and its response) is progressing and demonstrating when the remedial objective has been reached.

Pitfall examples:

Metrics for percentage of time operational provide limited value without also considering effectiveness of the system toward achieving the objectives during that operational period.

Meeting minutes or field reports that document activities without demonstrating achievement of remedial goals or objectives do not establish appropriate metrics for performance payment.

Statements like “we will actively work with the regulators” do not convey what is being accomplished or how that will alleviate the issue.

Optimized Exit Strategy (OES) based on status quo without providing supporting rationale offers limited value without first indicating why the current remedial operation(s) at the site represent the lowest cost possible under the existing site conditions.

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Expected Duration Net Reduction in Duration

C on ce nt ra tio n o f C on ta m in an t

Years

Current Trend

Proposed OES Performance Model

MCL

Decision Point for Implementation of

Contingency

Performance Model Illustration

Plan B Contingency The Plan B Contingency – used to manage the risks associated with achievement of proposed performance objectives

Pitfall examples:

More of Plan A as the Plan B (e.g. Plan A is to inject a specific compound into the groundwater or soil. If Plan A does not achieve the remedial goals as expected, a Plan B to inject more of the same compound is actually more of Plan A).

A mitigation plan is not the same as a contingency plan.

A mitigation plan is meant to reduce risks by virtue of the design and/or assumptions made (i.e. prevents the need for a Plan B) vs. a contingency plan is for the eventuality that the assumptions in Plan A were not correct (i.e. Plan B)

Decision logic and timing for implementation of the contingency plan is not included, therefore, it is unclear if remedial objectives can still be met within required timeframes.

Integrated Master Schedule & Milestone Payment Schedule

The Contractor shall propose milestone payments as part of the MPS in its proposal.

Milestone payments shall be based on the completion of a definable and measurable step, which is considered integral and necessary to the achievement of the stated performance objectives.

Completion of milestones shall demonstrate payment is appropriate and warranted.

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;

however the MPS is not final with award of the TO.

The MPS shall be included as part of the Project Management Plan (PMP). The MPS will be negotiated during development of the PMP and may require additional changes.

Sub- CLIN Sites Task Name Duration Start Finish

Payment Milestone Amount

% complete

0001AA PMP Opening Phase PMP in accordance with Table 1 of the PWS 971 days Mon 9/19/13 Wed 7/15/17 $200

Prepare Opening Phase Draft PMP 30 days Mon 9/19/13 Wed 10/19/13

Opening Phase Draft PMP Submittal 1 day Wed 10/19/13 Wed 10/19/11

Air Force Review/Approve with Comments of Opening Phase Draft PMP 21 days Wed 10/19/13 Wed 11/9/13

Air Force Approval of Opening Phase Draft PMP 0 days Wed 11/9/13 Wed 11/9/13

Prepare Opening Phase Final PMP 35 days Wed 11/9/13 Wed 12/14/13

Opening Phase Final PMP Submittal 1 day Thu 12/15/13 Thu 12/15/13

Air Force Review of Opening Phase Final PMP 7 days Thu 12/15/13 Thu 12/22/13

Air Force Approval of Opening Phase Final PMP 0 days Thu 12/22/13 Thu 12/22/13 $100 50%

Gantt Chart goes here

EXAMPLE OF INTEGRATED MASTER SCHEDULE SHOWING MILESTONE PAYMENT SCHEDULE

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Milestones shall include approval requirements in accordance with the performance standards in Table 1 in the PWS and the requirements of the regulatory structure.

The Air Force will review draft deliverables to ensure lead agency concurrence before the documents are provided to the regulators. However, milestones payments will only be accepted for final document deliverables (there may be some exceptions on a site-by-site bases depending upon complexity and time to achieve regulatory approval).

Contractors may use a single milestone:

“Air Force and Regulatory Approval of Final____”.

If Regulators do not have authority on the deliverable, it may remain as “Air Force

Approval of Final ___”.

Sub-CLIN Sites Task Name Duration Start Finish Payment Milestone Amount

% complete

0031AA TU500 TU500 – West Defuel Site - Complete RI/Characterization Report in accordance with Table 1 of the PWS. 132 days Tue 5/8/13 Mon 5/8/16 $100

Prepare Draft RI Workplan 14 days Fri 6/29/13 Thu 7/19/13 Submit Draft RI Workplan 1 day Fri 7/20/13 Fri 7/20/13 Air Force review of Draft RI Workplan 10 days Fri 7/20/13 Mon 7/30/13 Air Force approval of Draft RI Workplan 0 days Mon 7/30/13 Mon 7/30/13 Prepare Draft Final RI Workplan 9 days Tue 7/31/13 Fri 8/10/13 Submit Draft Final RI Workplan to AF and Regulator 1 day Mon 8/13/13 Mon 8/13/13 Regulator Review of Draft Final RI Workplan 32 days Tue 8/14/13 Thu 9/27/13 Prepare Final RI Workplan 9 days Fri 9/28/13 Wed 10/10/13 Submit Final RI Workplan 1 day Thu 10/11/13 Thu 10/11/13 Air Force and Regulator review of Final RI Workplan 22 days Fri 10/12/13 Mon 11/12/13 Air Force and Regulator approval of Final RI Workplan 0 days Mon 11/12/13 Mon 11/12/13 $20 20%

EXAMPLE

Gantt Chart goes here

Integrated Master Schedule & Milestone Payment Schedule

Milestone Payment Schedule

Milestone payments shall not include items such as program/project management, monthly reporting, or mobilization. These do not provide measureable program advancement.

Milestones shall not represent a “progress” payment or a monthly payment for level of effort expended. Completing site mobilization/demobilization, accomplishment of field activities, or submittal of a monthly/annual status report are examples of unacceptable milestones.

Terms of acceptance of milestones will be negotiated during the PMP. The Government will document agreements for payment within the Surveillance Plan that will be a living document throughout the life of the task order.

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At the time of proposal, it’s best practice to include:

Description of the milestone including standard of acceptance and deliverable associated (e.g. AF and Regulator acceptance of Final ROD).

Amount of proposed payment associated with completed milestone.

Date at which milestone is to be completed, which should align with the per Integrated Master Schedule (month/year).

During post award, it’s best practice to also include:

Projected date (month/year) for Sub-CLIN to be exercised to maintain schedule – continue to update with project acceleration or delays during life of contract.

Date Sub-CLIN exercised.

Date Sub-CLIN expires (ex. for ERA funds, end of FY, 5 years from date of exercise).

Percent complete for each milestone.

Integrated Master Schedule

Consistency in IMS/MPS Details

Integrated Master Schedule/Milestone Payment Schedule (IMS/MPS) consistency with the proposed remedial approach to achieve the performance objective

Pitfall examples:

Deliverables inconsistent with end state definitions

A milestone for achievement of RIP is shown prior to demonstration of a remedial system operating properly and successfully.

Unclear understanding of relationships of Federal and State oversight agencies relative to deliverables and adherence with agreements (e.g.

Federal Facilities Agreement (FFA), Corrective Action Permits, etc.)

Timeframes for regulatory review that are not aligned with the FFA.

Timeframes for AF and/or regulatory review that are unreasonable.

Deliverables inconsistent with regulations relative to the approach Explanation of Significant Differences or Record of Decision Amendment not included.

Inclusion of a DD without the proposed plan and public comment period.

Consistency in IMS/MPS Details (continued)

Pitfall examples:

PMP milestones should include Annual Time-Phased updates as required per Table 1 of the PWS.

Additional Sub-CLINs should not be included in the proposed Sub- CLIN/MPS that do not directly support a specific site (with the exception of the PMP), unless otherwise noted in the RFP.

For sites with an OES objective, appropriate OES milestones should be included within the MPS per Section 1.2 of the PWS.

Mobilize and Complete OES Plan Implement and Complete Implementation Completion Report Finalize and Complete OES Effectiveness or Confirmation Report

Milestones should be tied to the performance model as in achievement of a specified level of removal or restoration. For example:

Annual Report Demonstrating X Mass Reduction OR Annual Report Demonstrating Achievement Per Approved Performance Model

Best Practices for Integrated Master Schedules (IMSs)

When built correctly, the IMS can provide automatic updates used for programmatic planning and oversight:

Build as a hierarchy or Work Breakdown Structure (WBS) in outline levels aligned with the Sub-CLIN numbers, descriptions, and amounts in the awarded contract.

Include negotiated payment milestone amounts per the approved MPS.

Define predecessor/successor relationships and constraints associated with activities based on Sub-CLIN timing logic.

Include a notice to proceed (NTP)/obligation date milestone as the first activity for each Sub-CLIN Define start dates of Sub-CLINs with actual or projected NTP/obligation dates based on contract award documents.

Record percent complete of activities in the MPS (0% or 100%) based on

Contracting Officer’s Representative (COR) approval

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Relating Sub-CLIN Timing Logic to MS Project Predecessors

CLIN/

SUB-CLIN CLIN/SUB-CLIN/PAYMENT MILESTONE DESCRIPTION

CLIN/

SUB-CLIN

AMOUNT

PROJECTED DATE OF EXERCISE

0001AA Opening Phase Project Management Plan (PMP) $38,000 At Award

0001AB Closing Phase Project Management Plan (PMP) $25,000 Approx. 4 years from 0001AA or CO determination of bona fide need

0002AA CG025 Management Unit: Achieve DD $60,000 At Award

0002AB CG025 Management Unit: Achieve RC in accordance with Table 1 of the PWS. $140,000 Upon completion of 0002AA or CO determination of bona fide need.

0002AC

CG025 Management Unit: Mobilize and develop an optimized exit strategy/plan to achieve SC while maintaining compliance with current regulatory and binding agreements

$50,000 Upon completion of 0002AB or CO determination of bona fide need.

0002AD

CG025 Management Unit: Deliver Final OES Effectiveness Report to achieve SC documenting the completion of elements of the approved strategy that fell within the POP while maintaining compliance with current regulatory and binding agreements

$25,000 Approximately 2 years from 0002AC or CO determination of bona fide need.

0003AA TU510 – Bldg. 920: Achieve SC in accordance with Table 1 of the PWS. $30,000 2nd Q FY14

Examples of Predecessor/Successor Relationships Example of Start No Earlier Than Constraint

IMS Predecessor Illustration No predecessors defined between Sub-CLINs

Start dates do not correspond to logical execution

Sub-CLIN 0001AC was exercised at Award (9/19/11).

Sub-CLIN 0001AD would follow approximately 1 year later once RFI completed. With no predecessor indicated, delay or acceleration in achievement of 0001AC will not “push” the 0001AD date.

Sub-CLIN 0001AE should not occur until RC achieved (Spring 2013). If extracted as is, approximately $152,000 would show under 4th Q FY11 versus 2nd Q FY14. Also, any delay or acceleration in achievement of 0001AD will not affect

0001AE.

Illustration of a an Integrated IMS/MPS

Well Defined Hierarchy or WBS with NTP/ obligation date milestone

Start and Finish Dates

Integration of MPS

Complete

Established Predecessor Relationships

Example #1: CLIN, Sub-CLINs and Payment Milestones

EXAMPLE

(Sub‐CLIN portion re‐structured between the Air Force and the selected Offeror prior to award.

MPS finalized during the PMP development and approved by the Air Force when the PMP is approved.)

CLIN/

SUB‐CLIN CLIN/SUB‐CLIN/PAYMENT MILESTONE DESCRIPTION

CLIN/

SUB‐CLIN

AMOUNT

PAYMENT

MILESTONE

AMOUNT

DATE

COMPLETE

0001AA Opening Phase Project Management Plan (PMP) $25,000 $25,000 0001AB Closing Phase Project Management Plan (PMP) $25,000 $25,000 0002AA CG025 Management Unit: Achieve RIP in accordance with Table 1 of the PWS. $200,000

Air Force and Regulatory Approval of Final Feasibility Study $50,000 MONTH/YR Air Force and Regulatory Approval of Final Record of Decision $10,000 MONTH/YR Air Force and Regulatory Approval of Final Remedial Action Work Plan/Remedial Design $100,000 MONTH/YR

Air Force and Regulatory Approval of Final Remedial Action Completion Report

(RACR) $40,000 MONTH/YR

Total $250,000 $250,000

Note: Payment milestone ranges could be as low as 60%; but shall not exceed 80% of the total payment for the CLIN/Sub‐CLIN prior to achievements of the final deliverable.

Pa ym en t M ile st on es

Sub‐CLINs are included for the Opening Phase PMP and the Closing Phase PMP; but the PMP is to be updated and maintained over the life of the task order with a minimum of annual updates per the PWS. The terms “Opening Phase” and “Closing Phase”, as used in the sub‐CLIN description, do not equate to only two (2) versions of the document; but rather are used as terms to bridge the PMP, which is greater than five (5) FY’s worth of activities.

Example #2: Re-Structuring with Apparent Successful Offeror

EXAMPLE

(Sub‐CLIN portion re‐structured between the Air Force and the selected Offeror prior to award.

MPS finalized during the PMP development and approved by the Air Force when the PMP is approved.)

CLIN/

SUB‐CLIN CLIN/SUB‐CLIN/PAYMENT MILESTONE DESCRIPTION

CLIN/

SUB‐CLIN

AMOUNT

PAYMENT

MILESTONE

AMOUNT

DATE

COMPLETE

0001AA Opening Phase Project Management Plan (PMP) $25,000 $25,000 0001AB Closing Phase Project Management Plan (PMP) $25,000 $25,000 0002AA CG025 Management Unit: Achieve ROD $60,000

Air Force and Regulatory Approval of Final Feasibility Study $48,000 MONTH/YR Air Force and Regulatory Approval of Final Record of Decision $12,000 MONTH/YR

0002AB CG025 Management Unit: Achieve RIP in accordance with Table 1 of the PWS. $140,000 Air Force and Regulatory Approval of Final Remedial Action Work Plan/Remedial Design $100,000 MONTH/YR

Air Force and Regulatory Approval of Final Remedial Action Completion Report

(RACR) $40,000 MONTH/YR

Total $250,000 $250,000

Pa ym en t M ile st on es

Values illustrated are the original values per the Offeror’s proposed milestones. The AF should communicate their desire to restructure, then allow the Offeror to adjust their values, if appropriate, for sufficient cash flow provided the final deliverable is at least 20% of the sub‐CLIN.

What Changed in Example 1 versus Example 2?

Sub-CLIN 0002AA for $200,000 to achieve RIP was sub-divided into 0002AA for $60,000 to achieve ROD and 0002AB for $140,000 to achieve RIP.

Total price for site CG025 did not change from $200,000 but sub-division allows progress of work at this site to proceed with smaller amount of available dollars.

Requires completion of the ROD prior to execution of the remedial action (e.g. bona fide need).

Provides float in funding expiration in the event of unforeseen delays:

Each Sub-CLIN can extend up to 5 years from date of exercise to complete prior to funding expiration.

Extension of time for expiration of funds does not equate to extension of performance objective delivery date in contract unless a no cost modification to Table 1 dates was also provided.

Payment milestone values will need to be adjusted by the apparent successful Offeror and submitted with the revised PMP.

Understanding the Types of Sub-CLIN Options

Anything not exercised at the time of award in inherently an “option”:

May not have sufficient funding to exercise at task order award.

May require completion of prior activities before there is a bona fide need to exercise an option.

May include unit pricing in which case you only exercise the number of units necessary.

The Government reserves the right not to exercise options.

Best practice to maintain a list of options that can be accelerated (i.e. no predecessor activity and agreement with AFCEC, PBR Contractor, and Regulator) in the event additional funding becomes available.

Contractual Timelines for Exercising PBR Sub-CLINs

AFCEC’s C-contract allows for a period of performance (POP) of 10-years.

Final Deliverables should be completed 2-Months prior to end of POP in order to allow sufficient time to invoice and pay prior to the POP expiration.

Ensure activities cover entire POP but final deliverables complete approximately 2 months prior to end of POP

The default definition of obligation date is the date of contract action for the first Sub-CLIN associated with a site, unless expressly stated otherwise in the RFP. If there are multiple Sub- CLINs associated with a single site, the obligation date would be the start of the first Sub-CLIN in that grouping.

Other Observations Do not act or depend solely on Industry Day briefings/information. Briefings are often more generic and specific RFPs may adjust requirements.

Do not assume evaluators are familiar with installation(s), sites or proposed remedies.

Contractor changes in Technical Approach mid-stream do not require contract modifications in the PBR construct (i.e.

contracted for end objective versus how to get there).

However, MPS re-negotiation is necessary.

Cash flow as defined by contractors and the Air Force differs Contractors = date at which the milestone payment is received and includes the value for only the completed milestone(s).

Air Force = date at which the Sub-CLIN is to be exercised and includes the value of the entire Sub-CLIN.