SectionH_Rev1.doc

AEDC-H019, DETERMINATION OF INCENTIVE FEE (FEB 2008)

The earned incentive fee shall be determined in accordance with the provisions as set forth in this clause. This incentive fee clause applies to CLINs 0001 through 0006.

A. General. This is a Cost Plus Incentive Fee (CPIF) contract with multiple incentives. Each CLIN is subject to (a) a cost incentive described in the Incentive Fee clause, FAR 52.216-10, and (b) the performance incentive described in this clause, AEDC-H019.

The maximum incentive fee for this effort is 12 percent (not to exceed 12 percent) of the total target cost of the contract at the time of award. The minimum incentive fee for this effort is 3 percent of the total target cost of the contract at time of award. In addition, there are three performance incentives.

The total fee payable for this effort shall be (a) the target fee as adjusted under the Incentive Fee clause, plus (b) the amounts or adjustments provided under this incentive clause as performance incentives, provided that in no event shall the total fee be greater than the maximum fee or less than the minimum fee in the Incentive Fee clause, FAR 52.216-10.

B. Cost. The application of the cost portion of the total incentive fee is covered by FAR 52.216-10, “Incentive Fee (MAR 1997)”. The share ratio for under runs is 70%/30% (Government/Contractor) and overruns is 70%/30% (Government/Contractor).

C. Performance. This paragraph describes the performance incentives established to ensure the contractor meets their proposed System Specification for the natural environment, threat environment, and SOC connectivity. These incentives are negative only and are weighted according to their value to the Government. The contractor’s performance incentive will be evaluated at the Final Operational Capability (FOC).

C-1. Natural Environment Performance (50%) Failure to deliver the natural environment capability values proposed in the system specification to meet all the requirements in Table C-1 will reduce the earned cost incentive fee by 50 percent less the 3 percent minimum fee.

Natural Environment Performance Fee = Earned Fee Dollars x .5

Table C-1 Natural Environment Performance Requirement Set

Atomic Oxygen (4):

Para 2.2.4.1.2 to 2.2.4.1.3

Para 2.2.4.1.4 to 2.2.4.1.5

Para 2.2.4.1.7 to 2.2.4.1.8

Para 2.2.4.1.9 to 2.2.4.1.10

Low Energy Proton System (4):

Para 2.2.4.2.3 to 2.2.4.2.4

Para 2.2.4.2.5 to 2.2.4.2.6

Para 2.2.4.1.8 to 2.2.4.2.9

Para 2.2.4.2.10 to 2.2.4.2.11

Low Energy Electron System (4):

Para 2.2.4.3.2 to 2.2.4.3.3

Para 2.2.4.3.4 to 2.2.4.3.5

Para 2.2.4.3.7 to 2.2.4.3.8

Para 2.2.4.3.9 to 2.2.4.3.10

Solar Simulation System (5):

Para 2.2.4.4.1 to 2.2.4.4.2

Para 2.2.4.4.3 to 2.2.4.4.4

Para 2.2.4.4.5 to 2.2.4.4.6

Para 2.2.4.4.8 to 2.2.4.4.9

Para 2.2.4.4.12 to 2.2.4.4.13

C-2. Threat Environment Performance (40%) Failure to deliver the threat simulation capability values proposed in the classified system specification to meet all the requirements in Table C-2 will reduce the earned cost incentive fee by 40 percent less the 3% minimum fee.

Threat Environment Performance Fee = Earned Fee Dollars x .4

Table C-2 Threat Environment Performance Requirement Set

Laser Blinding

Para 1.1.1.2

Laser Heating

Para 1.1.2.1

Para 1.1.2.3

Radio Frequency

Para 1.1.3.1

Para 1.1.3.2

C-3 SOC Connectivity Performance (10%) Failure to deliver the SOC Connectivity capability values proposed in the system specification to meet all the requirements in Table C-3 will reduce the earned incentive fee by 10 percent less the 3% minimum fee.

SOC Connectivity Performance Fee = Earned Fee Dollars x .1

Table C-3

SOC Connectivity Performance Requirement Set

Connectivity to SOC

Para 2.2.3.1.1

Para 2.2.3.1.2

Para 2.2.3.1.3

D. Modifications. Any modification to this contract will not result in any change to the fee percentages stated herein.

Note: The “SRD Requirement” column will be removed when this clause is placed in the contract for award, as contractors will be evaluated on their proposed system specification.