Section_J,_Attachment_3__-_CWSP_Award_Fee_Plan_(Draft)_(20161212).docx

D R A F T Attachment - Award Fee Plan (AFP) Award Fee Plan (AFP) Framework and Approach The AFP and supporting processes are used to provide incentives in specific areas of the Center Wide Support Program (CWSP) in order to drive high levels of performance on the contract. The AFP will be aligned with the strategic goals and critical outcomes defined by the Government. Each period of performance shall be evaluated using measures that are tailored to that particular timeframe, and consider the priority of desired outcomes, as well as, the capability of the Contractor to achieve specific objectives.

The Contractor shall be evaluated with an AFP for each period of performance that includes objectives and targets developed jointly. However, the Government reserves the right to unilaterally define the award fee measures in the event Contractor concurrence cannot be achieved. The award fee measures for the base period (i.e., the nine month period that begins after contract transition is completed) and the nine subsequent option years will all be organized according the four overarching goals below:

1. Provide outstanding service to the science mission

2. Protect people, property and the environment

3. Be a trusted and valued neighbor and employer

4. Execute sound business practices “Critical Outcomes” will be provided by the Government and aligned with the four overarching goals (see the Critical Outcomes Technical Exhibit for the initial set of defined objectives). Metrics shall be developed by the Contractor and agreed upon such that quantitative and qualitative measurement of performance can be ascertained. The metrics and their relative weights will be reviewed and updated at the beginning of each option year. The aim of each AFP will be to align award fee with the highest priority areas of contract performance during that period. Sample AFP measures for the base period and following option year are included in this attachment and are for demonstration purposes only.

Award Fee Amounts

The Total Proposed CWSP Direct Labor Costs associated with CLIN X001 will be provided by the Offeror in their initial/final proposal and incorporated into this plan, after award. The Total Award Fee Pool will be calculated as the proposed percentage of the Total Proposed CWSP Direct Labor Costs. A base fee of Y% of the of the total proposed direct labor costs of CLIN X001 will also be established, and 1/12th of that value will be paid to the contractor monthly, upon receipt of invoice. Accordingly, the contractor may earn up to X-Y% of the total proposed direct labor as an award for performance against the measures defined by this AFP. Table 1 (below) shows how the anticipated total fee and base fee amounts for the base year and program years (Options) would be presented in the AFP. Note: initial contract values will be estimated and therefore may be subject to change if the contract is modified – the final contract values would be based on the contractor’s latest cost proposal, pending approval and acceptance by the contracting officer (CO).

Table 1 – Award Fee Totals

Other CWSP CLINs that use a fixed fee would not be subject to the award fee process in the AFP.

Adjectival Ratings and Award Fee Table 2 below presents the adjectival ratings and corresponding descriptions that will be used when determining the Contractor’s award fee (Note: the table below is based directly on FAR 16.401).

Table 2 – Adjectival Rating Scale

A sample framework for the base year measures and first option year measures are presented in the next sections. These goals and measures are proposed as examples only – the actual goals, measures and weighting will be finalized with the Contractor after contract award.

Base Year Award Fee Goals and Measures (for demonstration purposes only)

Goal 1: Provide Outstanding Service to the Science Mission (Weight: TBD%) Measure 1.1 Minimize the impact of contract transition on the research mission

· Complete contract transition in a timely manner with a high degree of quality (customer satisfaction)

· Other Metrics TBD Measure 1.2 Other measures TBD

Goal 2: Protect People, Property and the Environment (Weight: TBD%) Measure 2.1 A safe work environment is maintained for all federal and contracted/subcontracted staff as well as visitors and guests.

· Metrics TBD Measure 2.2 Other measures TBD Ratings and Criteria TBD (see generic FAR adjectival descriptions for default ratings and criteria)

Goal 3: Be a Trusted and Valued Neighbor and Employer (Weight: TBD%) Measure 3.1 Employees work in a culture where they are treated fairly, innovation is fostered, learning is valued, and diversity is respected.

· Metrics TBD Ratings and Criteria TBD (see generic FAR adjectival descriptions for default ratings and criteria)

Goal 4: Execute Sound Business Practices (Weight: TBD%) Measure 4.1 Minimize the impact of contract transition on facility operations, maintenance activities and personnel

· Complete contract transition in a timely manner with a high degree of quality (customer satisfaction)

· Other Metrics TBD Measure 4.2 The contractor is fully prepared for the initial integrated baseline review (IBR) per timeframe specified in the SOW

· Provide a complete and comprehensive project management plan, integrated master schedule (IMS) and fully functional earned value management system (EVMS) capable of producing contract performance reports (CPRs)

· Submit a fully integrated performance measurement baseline (PMB)

· Other metrics TBD Measure 4.3 Quality Management System (QMS)

· The existing quality management program is maintained

· The QMS is expanded per the SOW

· Other metrics TBD

Option Year Award Fee Goals and Measures (for demonstration purposes only)

Goal 1: Provide outstanding service to the science mission (Weight: TBD%) Measure 1.1The availability and reliability of critical infrastructure and supporting systems and components are maintained to provide uninterrupted services to the PIADC research mission.

· Animal Room availability

· % of completed work orders on time

· Other metrics TBD Measure 1.2 Laboratory spaces and animal areas are clean, safe, compliant, and "research ready" availability is maximized.

· Laboratory PM's completed on-time

· Interim Animal room readiness and availability @ 90% or greater

· No IACUC or safety major non-conformances

· Other metrics TBD Measure 1.3 Animal care is conducted in a manner that conforms to the highest standards for animal care and use practices and meets research demands.

· Animals are delivered to PIADC safely and in compliance

· Water usage and waste minimization is decreased quarterly and so improvements are made

· No Animal care staff injuries are reported

· Other metrics TBD

Goal 2: Protect People, Property and the Environment (Weight: TBD%) Measure 2.1 A safe work environment is maintained for all federal and contracted/subcontracted staff as well as visitors and guests.

· Metrics TBD Measure 2. 2 On-going risk assessments are conducted to minimize the impacts of failures that may affect safety, security, the environment, and animal welfare.

· Metrics TBD Measure 2.3 A high state of readiness is maintained to plan for, respond to, mitigate the consequences of, and recover from a comprehensive range of credible abnormal and emergency conditions.

· Metrics TBD Ratings and Criteria TBD (see generic FAR adjectival descriptions for default ratings and criteria)

Goal 3: Be a Trusted and Valued Neighbor and Employer (Weight: TBD%) Measure 3.1 Employees work in a culture where they are treated fairly, innovation is fostered, learning is valued, and diversity is respected.

· Metrics TBD Ratings and Criteria TBD (see generic FAR adjectival descriptions for default ratings and criteria) Goal 4: Execute Sound Business Practices (Weight: TBD%) Measure 4.1 Cost and Schedule Performance for “Core Services” (Sub-weight: TBD%) Following the availability and validation of the Cost Performance Index (CPI) and Schedule Performance Index (SPI) on a cumulative (contract year) basis, the fee for cost and schedule performance will be determined in accordance with the ranges below.

4.1.1 Cost Performance (Sub-weight TBD%)

4.1.2 Schedule Performance (Sub-weight TBD%)

Measure 4.2 Cost and Schedule Performance for “Special Projects” (Sub-weight: TBD%) Following the availability and validation of the Cost Performance Index (CPI) and Schedule Performance Index (SPI), the fee for cost and schedule performance will be determined in accordance with the scales below.

4.2.1 Cost Performance (Sub-weight TBD%)

4.2.2 Schedule Performance (Sub-weight TBD%)

Measure 4.3 (See Critical Outcomes) (Weight: TBD%)

· Metrics TBD Ratings and Criteria TBD (see generic FAR adjectival descriptions for default ratings and criteria)

AWARD FEE PROCESSES

Contractor Self-Assessment Within 30 calendar days of the completion of the period of performance (defined as each year in the contract), the Contractor shall provide a self-assessment report/briefing to the Award Fee Review Board against the performance areas defined in section 3 of this plan. The briefing material will be provided to the COR not less than 3 business days prior to the briefing.

The self-assessment report shall be objective, robust, and credible and succinct. The briefing presentation materials shall serve as the contractor’s report. Performance against each performance area shall be scored in accordance with section 2 of this plan.

Based on the scores and analysis for each objective, the overall scoring for each performance area is reported by the CWSP project manager.

Fee Determination The Director, Office of National Laboratories (ONL) Science & Technology Directorate, Department of Homeland Security, Washington, DC 20528, or their designee will serve as the Fee Determining Official (FDO). The FDO will consider the report and evaluation provided by the Award Fee Review Board (AFRB) in making the final award fee determination. The Program Manager (PM) will act as the chair of the AFRB. The AFRB reviews the Contractor self-evaluation report and any other applicable information to determine the fee score for each goal. The FDO reserves the right to apply a “managerial adjustment” (upward/downward) to ensure the final evaluation represents any other factors that need to be considered during the performance period (e.g. major unplanned events, emergencies, limitations in the measurement system that are considered unfair to the CWSP Contractor or the Government/public). The FDO and PM also reserve the right to engage other Federal staff and PMO contractor support personnel for technical assistance such that FDO can determine fee. Contractor support staff may not work on the evaluated contract as an employee or consultant.

Within 30 calendar days of completing the evaluation, the FDO will provide an award fee report with cover letter to the Contracting Officer. The determination of the FDO is final and not subject to the Disputes clause of the basic contract. No fee will be earned if overall cost, schedule, and technical performance in the aggregate are less than satisfactory.

Unearned award fee does not carry over and is not made part of subsequent award fee pool.

Award Fee Determination Organization, Roles, and Responsibilities The Fee Determination Official (FDO) – The FDO approves the AFP and any significant changes and will make the final fee determination based on recommendations from the AFRB.

The Award Fee Review Board (AFRB) will include representatives from DHS Operations, DHS Science & Technology, and others as deemed appropriate.

At a minimum, the AFRB will include:

· The Program Manager (PM)/Director of Operations (DO) or designee – The PM acts as the Chairperson of the AFRB

· Contracting Officer’s Representative (COR) and/or Alternate COR

· Contracting Specialist (s) (OPO)

· A minimum of two other Federal subject matter experts who are familiar with CWSP performance and deemed appropriate to participate by the PM/DO based on their specific knowledge and experience.

The charge of the AFRB is to determine the overall performance of the contractor against the targets and goals that were established in the award fee plan while also considering other relevant factors. The AFRB will conduct a comparative analysis of the contractor’s self-assessment with their own assessment as the basis for their recommended score.

The PM/DO acts as Chair of the AFRB and in this capacity has the following duties:

1. Calling AFRB meetings, controlling attendance and chairing the meetings;

2. Recommending the appointment of nonvoting members to assist the AFRB in performing its functions, e.g., a recording secretary;

3. Requesting and obtaining performance information from other units or personnel involved in observing contractor performance, as appropriate;

4. Calling on federal personnel from various organizational units to consult, as needed, with the AFRB;

5. Assuming responsibility for the actual preparation and approval of the award fee report and other documentation such as Board minutes; and

6. Ensuring the timeliness of award fee evaluations.

7. Submit a final award recommendation to the FDO with the names, positions and signatures of all the board members.

Process and Schedule for Award Fee Evaluations Table 3 (below) provides the activities, timing, and corresponding responsible parties in the award fee process.

Table 3 – Award Fee Process

Responsible Party

Activity

Timing

COR and Alternate COR

Contractor’s Program Manager

AFRB

FDO

Final score is determined and a letter is prepared and sent to the Contracting Officer to document award fee amount and basis for decision.

15 calendar days after receipt of the AFRB recommendation

Contracting Officer (CO)

Contractor The Contractor will be debriefed at contractor’s request and has 10 business days after receipt of the Award Fee Determination to request a debrief meeting through the CO.

Mutually agreed upon time (NTE 60 calendar days)

Award Fee Integrity The award fee process is recognized as subjective in nature, but every effort will be made to assure fairness. The Government has incorporated checks and balances into the process to safeguard against arbitrary and unfounded evaluations either for or against the Contractor.

Award-Fee Plan Change Procedure All significant changes are approved by the FDO, COR, and CO. Examples of significant changes include changing evaluation criteria, adjusting weights to redirect Contractor’s emphasis to areas needing improvement, and revising the distribution of the award-fee dollars. The Contractor may recommend changes to the CO at least fifteen (15) business days after the receipt of option year planning guidance and award fee metrics, measures and weights. After approval, the CO must notify the Contractor in writing of any change(s) within 10 calendar days of the requested change. Changes made affecting the current evaluation period must be by mutual agreement in writing by of both the contractor and the Contracting Officer.

Contract Termination If the contract is terminated for convenience by the Government after the start of an award fee evaluation period, the award fee deemed earned for that period must be determined by the FDO using the normal award fee evaluation process. The amount of award fee available must represent a prorated distribution associated with the current evaluation period. After termination, the remaining award fee amounts allocated to all subsequent award fee evaluation periods cannot be earned by the Contractor and, therefore, must not be paid. If the contract is terminated for default, no award fee will be provided to the Contractor.

D R A F TDRAFT

image1.emf