HQ0147-09-R-0006 atch 7 Draft AF Plan.docx

Award Fee Plan

1.0 INTRODUCTION

1.1 Purpose

1.1.1 This award fee plan documents the process for the administration of award fee for the Airborne Sensor (ABS) Indefinite Delivery Indefinite Quantity (IDIQ) contract. This award fee plan is intended as a proactive management tool to incentivize the Contractor and reward the Contractor based on performance as specified in this plan. This plan will define the responsibilities, policies, and methodology by which the Government will evaluate Contractor performance and make award fee determinations.

1.1.2 The ABS Program provides Airborne Platforms and Electro-Optical/Infrared (EO/IR) Sensors to support Ballistic Missile Defense System, Elements, and Technology Development Test Programs through collection of radiometrically accurate data. The Contractor supports the High Altitude Observatory (HALO) I/II/III and/or Widebody Airborne Sensor Platform (WASP) aircraft to support the collection of data from these airborne sensors.

2.0 ORGANIZATION AND RESPONSIBILITIES

2.1 Organizational Structure

2.1.1 The Award Fee organization consists of the Fee Determining Official (FDO); an Award Fee Advisory Council (AFAC); an Award Fee Review Board consisting of a chairperson, the contracting officer, a recorder, other functional/component area participants, advisory members, Performance Monitors; and the Award Fee Secretariat (AFS).

2.1.2 The Contractor shall be paid award fee as deemed appropriate by the FDO based upon recommendations of the Award Fee Review Board (AFRB) and the Award Fee Advisory Council (AFAC). The Executive Director, Missile Defense Agency (MDA/DX) is the FDO.

2.1.3 The Contractor’s performance for each period will be evaluated by the AFRB. The Government may unilaterally change the composition of the AFRB as necessary.

2.1.4 The AFRB members are as follows:

a. Deputy, BMDS Program Manager, (MDA/DP) Chairman

b. Program Manager, Airborne Sensors, (MDA/DTR)

c. Director for Acquisition Representative (MDA/DA)

d. Director, Test Resources, (MDA/DTR)

e. Deputy Director, Test Resources, (MDA/DTR)

f. Director of Contracting, Test, Targets and Countermeasures Programs

(MDA/DACT)

g. Deputy Commander, Defense Contract Management Agency

h. Safety, Quality & Mission Assurance (MDA/QS) Representative

i. Cost Estimating and Analysis (MDA/DOE) Representative

j. General Counsel (MDA/GCQ) (advisor) (non-voting)

k. Recorder (non-voting)

l. Contractor Program Manager (non-voting)

2.1.5 The AFAC will review the AFRB fee recommendations and provide advice to the FDO. The AFAC members are as follows:

a. Deputy Director (MDA/DD)

b. Director for Acquisition (MDA/DA)

c. Director for Engineering (MDA/DE)

d. Director for Agency Operations (MDA/DO)

e. General Counsel (MDA/GC)

f. Director for Test (MDA/DT)

2.1.6 At the end of each award fee period and based upon the recommendation from the AFRB, AFAC, and any other pertinent information, the FDO shall determine the amount of award fee, if any, which will be paid to the Contractor for work performed during that award fee period. Any unearned award fee will be removed from the contract.

2.2 Responsibilities

2.2.1 Fee Determining Official (FDO). The FDO: (1) Approves the award fee plan; (2) Approves the appointment of AFRB members; (3) Ensures the award fee decision process is thorough and fair; (4) Determines the amount of fee earned; (5) Provides the contractor a written award fee decision that discusses contractor performance, specifies the amount of fee earned, and reiterates the areas of emphasis included in the expectations letter within thirty-five days after the end of the period; (6) Directs the Contracting Officer to makes changes to the award fee plan, if necessary; (7) Approves award fee expectations letters.

2.2.2 Award Fee Advisory Council (AFAC). The AFAC will: (1) Review and coordinate on the FDO package prior to the briefing; (2) Consult with the FDO on matters pertaining to the consistent application of award fees across the BMDS; (3) Review award fee plan revisions and modifications; and (4) Advise the FDO, providing an alternative recommended rating only when the advisory rating varies more than two percent from the AFRB recommendation.

2.2.3 Award Fee Review Board (AFRB).

2.2.3.1 AFRB Chair. The AFRB Chair will: (1) Present the AFRB’s recommendation to the FDO; (2) Brief final expectations letters and updates to award fee plans to the FDO at least 30 days before the start of the upcoming award fee period; (3) Approve and provide interim award fee assessment to the contractor, notifying the FDO on interim award fee assessments of 80% and below; (4) Appoint performance monitors prior to the evaluation period and notify them of their assigned evaluation area(s); and (5) Recommend AFRB members; (6)

2.2.3.2 Award Fee Review Board Members. The AFRB members (1) Evaluate the Contractor’s performance; (2) Prepare an interim award fee performance briefing or letter to the contractor; (3) Convene no later than 14 days after the close of the award fee period; (4) Recommend an earned award fee amount; (5) Compare fee recommendation to CPARS assessment for the period; and (6) Recommend the criteria, percentages, and emphasis areas for the next award fee period.

2.2.3.3 Recorder. The AFRB recorder is responsible for coordinating the administrative actions required by the FDO, AFRB, AFAC, and the Monitors (if used in the Award Fee Determination process) including: (l) Receipt, processing and distribution of reports and briefings to the FDO, AFRB members and Monitors; (2) Scheduling and preparation of the Chair’s award fee recommendation briefings to the FDO; (3) Assisting the FDO and AFRB with award fee evaluation meetings; (4) Coordinating the Monitors’ efforts, reports and testimony; (5) Maintaining all appropriate files documenting the award fee process and results; and (6) Accomplishing other actions required to ensure the smooth operation of the award fee process.

2.2.3.4 Procuring Contracting Officer (PCO). The PCO is responsible for all contractual actions required by this plan. This includes: (1) Implementing all changes to the Award Fee Plan; and (2) Issuing contract modifications obligating any Award Fee authorized by the FDO within three business days after the decision.

2.2.3.5 General Counsel. The General Counsel will: (1) Advise the AFRB on legal issues relating to AFRB recommendations; (2) Advise the FDO on the legal sufficiency of award fee determinations; (3) Review award fee contract clauses for legal sufficiency and advise the Contracting Directorate accordingly; and (4) Participate in the AFAC.

2.2.3.6 Performance Monitors. The performance monitors will gather and document data into the Award Fee Automated Support Tool (A-FAST) Government website concerning the Contractor’s performance in their area(s) of responsibility that detail specific examples where; (1) improvement is necessary or desired; (2) improvement has occurred; and (3) performance is below, meets or exceeds contract requirements. The performance monitors will also (1) conduct all assessments according to contract requirements and the award fee plan so that evaluations are fair and accurate; (2) maintain written records of the contractor’s performance in their assigned evaluation areas; (3) prepare interim and end-of-period evaluations addressing the contractor’s strengths and weaknesses; (4) brief the AFRB on their specific evaluation area(s); (5) recommend changes to the award fee plan, as needed; (6) understand and measure the contractor’s performance in accordance with the contractor’s corporate best practices; and (7) take refresher training annually.

2.2.3.7 Award Fee Secretariat (AFS). The AFS will: (1) facilitate timely award fee determinations by scheduling all award fee activities to include expectations letter briefings, AFRBs, and FDO briefings; (2) act as the focal point for staffing and coordination of all expectations letters, award fee plan updates, and AFRB recommendations to the FDO; (3) notify the AFRB chairperson to conduct the mid-term award fee assessment; and (4) attend expectations letter briefings, AFRBs, and FDO briefings.

3. 0 AWARD FEE PROCESS

3.1 FDO Expectations Letter. The expectations letter shall be prepared and submitted to the Contractor prior to the start of each evaluation period. The expectations letter shall provide the specific areas of performance to be evaluated and their relative importance. The Contractor can participate in the development of these letters by recommending the performance areas, evaluation criteria and metrics, and amount of fee assigned to each recommended award fee area. These letters shall include the potential award fee pool amounts assigned in the evaluation period. The expectations letter will be a contractual part of the award fee plan by submittal to the Contractor. Conflicts between the expectations letter and the award fee plan will be resolved in favor of the expectations letter.

3.2 Interim Evaluation Process. At the evaluation midpoint period, the AFRB Chair will determine the interim evaluation results from the Performance Monitors and notify the Contractor of the strength and weaknesses for the current evaluation period, as well as watch items for the second half of the evaluation period. The PCO may also issue letters at any other time when it is deemed necessary to highlight areas of Government concern.

3.3 Award Fee Determination Procedures.

3.3.1 At the end of the award fee evaluation period, the Recorder will call a formal AFRB meeting. Concurrently, the PCO will determine the total maximum award fee available for the current period; this award fee amount is the aggregate sum of award fees for all of the completed Operation and Maintenance, Improvement and Modernization projects, and missions during the award fee period.

3.3.2 The AFRB award fee evaluation meeting will be held within fourteen (14) days after the end of each award fee period. The AFRB will assess the Contractor’s performance in meeting the award fee objectives for each of the evaluation elements. This assessment will be utilized to calculate the award fee earned amount that the AFRB Chair will include in his/her recommendation to the AFAC and the FDO.

3.3.3 The AFRB Chair will present the AFRB’s summary of the meeting and its recommendation to the FDO. The FDO will determine the award fee earned and payable upon review of the Contractor's performance against the criteria set forth in this plan. The AFRB Chair will present a performance evaluation letter to the Fee Determining Official for review and signature. The FDO Award Fee Decision letter will inform the Contractor of the amounts of award fee earned, fee to be rolled over (if any), and include evaluation scoring and a written summary for each evaluation category.

3.3.4 The PCO will issue unilateral delivery order modifications to those affected Delivery Orders authorizing payment of the earned award fee.

4.0 FINAL DECISION

Determinations of the Fee Determining Official, with respect to the amount of the award fee to be paid to the Contractor and the methodology for determining the award fee, are unilateral decisions made solely at the discretion of the Government.

5.0 PAYMENT OF AWARD FEE

The award fee shall be provided to the Contractor through Delivery Order modifications. The Contractor shall be paid award fee, if any awarded during the period, upon submittal of a proper invoice or voucher to DCAA (to be forwarded to the cognizant Payment Office), together with a copy of the unilateral modification to the contract authorizing payment of award fee for the applicable award fee period. The Contractor’s invoice must cite the appropriate accounting data in order for payment to be effected.

6.0 PROVISIONAL AWARD FEE PAYMENT

Payment of provisional award fee is at the discretion of the Fee Determining Official and is intended to be authorized. The payment process is set forth in Section B of the contract.

7.0 AWARD FEE BASE AND STANDARD FEE

The base fee for this effort is zero (0). The standard award fee for the ABS Program is _____________. In the event that the Contractor does not perform in accordance with the performance objectives, the FDO has discretion to award zero (0) award fee.

8.0 CONTRACT/DELIVERY ORDER TERMINATION

In the event the contract or delivery order is terminated in whole, or in part, for convenience of the Government, the Contractor will be entitled to retain all award fee previously determined to be earned by the FDO prior to the effective date of such termination. Invoices in process for award fee earned, but not paid as of the effective date of termination, will be paid by the Government as if the termination for convenience had not occurred. If the Government elects to terminate for convenience after the start of an award fee period, the award fee deemed earned and to be paid for this period will be determined by the FDO. The remaining award fee dollars for all periods subsequent to this termination, including mission success payments, shall not be considered available or earned, and therefore, shall not be paid.

9.0 AWARD FEE EVALUATION CRITERIA

9.1 Evaluation Criteria. The ABS program shall be evaluated on the following criteria. The criteria and relative weighting for each element is listed below.

9.2 Evaluation Criteria Amendment. The award fee plan describes those specific evaluation criteria for the ABS Program. The award fee plan, to include the evaluation criteria and element weights, may be unilaterally amended by the Government provided that they are transmitted by the FDO to the Contractor prior to the start of the new award fee period. Changes affecting the current evaluation period must be by mutual agreement of the parties. If there are no changes to the evaluation criteria or element weights, it is assumed the previous period criteria will be used. Because ABS funding is provided by multiple MDA elements, ABS award fee funding will be provided on individual task orders; however, the ABS program is evaluated at the program, and not the task order, level.

The ABS Program Award Fee Pool shall include the award fee associated with missions, improvements and modernization efforts, and operations and sustainment support during the award fee period. Those missions that are awarded within 15 calendar days of the mission launch (L-15) shall be considered Critical Timeline Missions and shall not be included in the ABS Program Award Fee Pool. Critical Timeline Missions will be evaluated separately on a case by case basis, using the same evaluation criteria and weightings as listed above.

9.2.1 Contract Performance (30%)

10.2.1.1 Program Management. The contractor’s performance will be evaluated in terms of its effectiveness in performing overall program management. This area evaluates program management effectiveness in administering the contract requirements, effectively coordinating and managing the efforts performed by all of the subcontractor(s), and applying day-to-day management attention in working program management issues and action items. The contractor’s performance will also be evaluated in terms of its compliance with the Service Provider’s best practices, as numbered in Annex B. Aspects of management performance that may be considered are:

· Program execution via thorough integrated plans, schedules, and activities with effective flow-down throughout the organization including suppliers;

· Methodologies for identifying cost, schedule, performance and risk management issues and tradeoffs;

· Establishment and proper maintenance of viable contract baselines as demonstrated through Integrated Baseline Reviews (IBRs) and baseline maintenance reviews;

· Establishing clear and effective team responsibilities and interrelations;

· On time, responsive and complete proposals with understandable basis of estimates and evaluation tools that facilitate review;

· Effective communication between the Contractor and the Government;

· Ensuring on time mission support; effective scheduling of O&M, and I&M projects to ensure ready availability of the aircraft for mission support.

10.2.1.2 Cost Management. The contractor’s performance will be evaluated in terms of its overall effectiveness in managing cost and schedule. This area evaluates effectiveness in financial administration; maximizing value accrued from the funds expended, and the achievement of program affordability goals in compliance with the Service Provider’s best practices as numbered in Annex B. Aspects of cost and schedule that may be considered are:

· Proactive and innovative pursuit of program cost control to include introducing concepts or initiatives which produce demonstrable reductions in program cost without adding risk;

· Contractor anticipation of possible sources of cost growth and implementation of solutions to maintain cost at current or below program baseline;

· Proactive notification to the program office of projected cost overruns or underruns with documented rationale;

· Accurate, complete, timely, consistent, understandable, traceable cost and schedule data (Contract Funds Status Reports, Contract Performance Reports, etc.).

10.2.1.3. Small Business Utilization (Will be evaluated under Program Management). The contractor’s performance under this element will be evaluated in terms of successful initiatives that improve the BMDS capabilities through the utilization of small businesses. Aspects of small business initiatives that may be considered are:

· Increases in small business utilization and initiatives that provide enhancement to the program and to the overall BMDS.

· Innovative transition of technologies from MDA Small Business Innovative Research/Small Business Technology Transfer, MDA Historically Black College and University/Minority Institutions Program designed to improve and grow the MDA and BMDS supporting industrial base.

· Utilizing new sources of supplies and services to promote competition and lower costs to MDA.

10.2.2 Key Event Performance Element (20%). The contractor’s performance under this element will be evaluated in terms of its timely and effective completion of performance milestones scheduled during the specific award fee period of performance. Performance milestones for delivery orders will be defined in the individual delivery order. Those aspects of key events that may be considered are:

· Successful completion of pre-mission events to include Flight Readiness Reviews (FRRs), Mission Readiness Reviews (MRRs), local simulation flights, dress rehearsal flights, and any other pre-mission preparation. Satisfactory: Pre-mission planning including subcontractor data, is logically organized and provides adequate visibility to the government to support technical review. When greater detail is requested, the contractor provides it to the government in a timely manner. Excellent: Pre-mission planning data is traceable and provides visibility to the Government to support a detailed technical review. Less than 15% work breakdown structure clarification required.

· Schedule milestone tracking and projections are accurate and prevent program impact;

· Successful and timely execution of mission and I&M performance milestones within the award fee period prescribed;

· Completeness of preparation and level of detail for design review events;

· Accurate, complete, and timely Mission Assurance briefings provided to the Government. Satisfactory: Mission Assurance briefing process includes review of operator training, a plan to achieve all customer provided primary and secondary mission objectives, deployment timeline, fulfillment of logistics support requirements, ABS platform build-up, test support position planning all in a logically organized format that provides adequate visibility to the government to support technical review. When greater detail is requested, the contractor provides it to the government in a timely manner. Excellent: Pre-mission planning data as described above is traceable and provides visibility to the Government during a detailed on-site technical review. Less than 15% work breakdown structure clarification required.

· Mission Checklists provided to the Government for each mission event. Satisfactory: Mission checklists are detailed enough and are fully filled out at the completion of the mission to provide adequate visibility to the government to support technical review of individual operator’s actions in flight. When greater detail is requested, the contractor provides it to the government in a timely manner. Excellent: Individual actions of the aircrew mission team are adequately documented in the completed Mission Checklist so that required actions are traceable and provide visibility to the Government to support a detailed technical review. Less than 15% of the mission checklist items require clarification.

· Proactive scheduling and completion of maintenance to minimize system downtime and ensure readiness to meet MDA Mission Requirements. Satisfactory: Contractor develops a reliable aircraft scheduled maintenance and routine inspection schedule that includes work scope, schedule, and cost. Aircraft are available for scheduled evolutions in support of a mission at least 95% of the time. This includes stellar calibration, required communication tests, dry run, dress rehearsal or mission day. Excellent: Contractor is flexible enough to anticipate and accommodate major changes to mission schedules, experiences positive schedule variances, employs early corrective action and planning and anticipate delays in the schedule and works them before they can become a problem, proactively manages schedule risks, taking steps as part of their risk management process to rectify the problem's root cause. Aircraft are available for scheduled evolutions in support of a mission at least 99% of the time. This includes stellar calibration, required communication tests, dry run, dress rehearsal or mission day.

· Aircraft/crew and ground crew readiness for test events. Satisfactory: Contractor develops a reliable aircrew and ground crew availability schedule that includes work scope, schedule, and cost. All required air and ground crew personnel are available for all scheduled evolutions in support of a mission 100% of the time. Excellent: Contractor is flexible enough to anticipate and accommodate major changes to mission schedules, experiences positive schedule variances, employs early corrective action and planning and anticipate delays in the schedule and works them before they can become a problem, proactively manages schedule risks, taking steps as part of their risk management process to rectify the problem's root cause. Air and ground crew personnel are available for scheduled evolutions in support of a mission at least 100% of the time.

10.2.3 Mission Success Element (50%). For ABS missions, the contractor’s success will be measured as follows:

· Completion of Primary test objectives;

· Completion of Secondary test objectives;

· Post-data deliverables provided to Government customer in a timely period as described in mission documentation;

· Effective communication between the ABS Government representative before, during, and after each test event.

Specific technical objectives and schedule window for mission success will be determined for each mission by the Government and provided in the mission support documentation. The Government shall determine which technical objectives are applicable and their weighting for any given mission. The Government will verify that the mission's technical objectives were met based on data provided by the Contractor and other independent sources.

10.3 Special Emphasis Areas

For each award fee period the FDO may identify special emphasis areas requiring the contractor’s focus.

10.0 AWARD FEE RATINGS

10.1 Rating and Definition. The FDO will determine a rating for the Contractor’s performance for the ABS program that will be related to the percentage of award fee paid. The relationship between rating and percent of award fee earned is shown below. Annex A provides the Award Fee Formulae.

The basic (minimum essential) requirement is meeting the conditions set forth in the Contract Statement of Work (Attachment 1).

ANNEX A

AWARD FEE FORMULAE

Formulae:

$ Fee = 0, for final performance scores < 50%

$ Fee = [(final performance score/100) x available fee pool during period], for final scores > 50

HQ0147-09-R-0006

Attachment 7

HQ0147-09-R-0006

Attachment 7

ANNEX B