HQ085021R0001 Attachment 6 - Tranche 0 Launch Services Notional Payment Plan (Rev 1).pdf

Space Development Agency

Tranche 0 Launch Services Contract

Solicitation No. HQ085021R0001

Attachment 6

Notional Payment Plan

BASIS OF PAYMENT

The launch service shall be paid based on payment milestones. Table 1 outlines a notional payment plan and will be updated once the payment plan has been finalized between the awarded vendor and the Government. Each milestone represents an event or action necessary to successful performance. The payment amounts are broken out as specified percentages for the bottom-line firm fixed price (FFP) associated with the required tasks to meet the SOW requirements. Each payable milestone event will be included in the final Contract as a separately priced Contract Line Item Number (CLIN). These payable milestones shall not be “progress payments based on cost” as described in FAR 52.232-16, but instead reflect the completion of the top level critical performance based milestones traced back to the tasks found in Attachment 1 – Statement Of Work and allows for a successful delivery-to-orbit of all Space Vehicles. Offerors should include proposed changes to the payment schedule within their proposal cost/price volume.

Once payment plan has been finalized between the awarded vendor and the Government, in order to initiate the payment process, the Contractor shall notify the Government upon completion of each milestone. The Government’s Contracting Officer (CO) will determine whether a milestone has been successfully met based on the inputs from Space Development Agency team.

To the maximum extent possible within fifteen (15) business days after the Government has received the Contractor’s notification of completion, the CO will provide concurrence of milestone completion or justification on why the milestone has not been met and specify the issues and/or corrective actions required.

The Contractor shall not receive greater than 90% of the total contract price until after acceptance of the launch services and payloads have reached the required orbit specified in the SOW. If multiple launches are executed, the successful completion of the initial launch milestone will earn 7% and successful completion of the final launch milestone will earn 5%. Given that defects in service for the launch milestone(s) are not suitable for correction by re-performance, the CO has determined that, pursuant to FAR 52.246-4(e), the appropriate relief for the Government in the event(s) of launch failure is to reduce the contract price by the amount of the full Milestone #8 and/or Milestone #9 (as applicable), which reflects the reduced value of the services performed.

Table 1: Milestone Payment Plan

Payment # Timeline Event/Criteria % of Total Price

1 Contract Award

‐ Initiate Early Integration Studies 3%

2 Initial Launch L-11 months

‐ Early integration results 3%

3 L-10 months ‐ Initiate Long-lead hardware purchases 10%

4 L-9 months ‐ Interface Control Document 10%

5 L-6 months ‐ LV As-Built Configuration List

‐ Flight hardware interface checks

50%

6 L-3 months ‐ Launch Campaign Readiness Review (Initial Launch)

5%

7 L-2 months ‐ Pre-shipment review (Initial Launch) 5%

8 L-0 months ‐ Launch Campaign Readiness Review (Subsequent Launch)

2%

9 L+30 days ‐ Mission Orbital Parameter Accuracy Verification (Initial Launch)

‐ Government Acceptance of Launch Service (Initial Launch)

‐ Post-Launch Report

6%

10 Final Launch L+30 days

‐ Mission Orbital Parameter Accuracy Verification (Final Launch)

‐ Government Acceptance of Launch Service (Final Launch)

‐ Post-Launch Report

6%