Attachment J-5 TPharm5 Award Fee Plan 20191122.docx

Attachment J-5 Award Fee Plan Version 1.0 November 22, 2019

1. PURPOSE. This Award Fee Plan (AFP) establishes the organization, responsibilities, processes, criteria, and rating standards which will be used in administering contract Section H.8., Award Fee.

2. SCOPE. This AFP, in conjunction with the assessment of the Award Fee Board (AFB), will be considered by the Award Fee Determining Official (AFDO) in determining the award fee amount.

3. DEFINITIONS.

“Award Fee” (AF) is a dollar amount that the Contractor may earn in whole or in part, from the available Award Fee Pool, based on Government-developed and administered award fee criteria and other data as appropriate to motivate and reward the Contractor for contract performance excellence. The amount of the AF to be paid is based upon the Government's subjective evaluation of established award fee criteria. The methodology for determining the AF and the AF amount earned are unilateral decisions, made solely at the discretion of the Government.

“Award Fee Pool” is the maximum total dollar amount available at the end of each period, as specified in the contract schedule, that the Contractor may earn and be awarded. Since the AF must be earned, the Contractor begins each evaluation period with 0% of the available award fee and may earn up to the maximum available award fee for each evaluation period.

4. ORGANIZATION.

4.1. The AF is administered by Government personnel within the Defense Health Agency. The assigned personnel may change from time-to-time; however, the organization and responsibilities described herein are expected to continue during the term of this contract.

4.2. The AFDO is the individual responsible for administering the AF process and making the final determination regarding the amount of the AF earned by the Contractor during the evaluation period. The AFDO for this contract will be the Chief, Pharmaceutical Operations Division, Defense Health Agency (DHA).

4.3. The AFB will be comprised of the following personnel who will have an equal vote in determining the recommended award fee. Membership is based on position and is not delegable.

5. RESPONSIBILITIES.

5.1. The AFDO is responsible for determining the final amount of AF based on this AFP, the recommendations and findings of the AFB, information of which the AFDO is aware, as well as other mitigating factors. The AFDO will attend AFB meetings as a non-voting member in order to hear reports and briefings first hand and participate in discussions. The AFDO, in coordination with the CO, should notify and debrief the Contractor of the earned award fee and the basis for the decision.

5.2. The AFB Chairperson is responsible for ensuring the integrity of the process; managing the AFB; ensuring training of all AFB participants; and ensuring all relevant information and documentation is provided to the AFB. The AFB Chairperson will chair AFB meetings and brief attendees on relevant performance reports, surveys, and data. AFB Chairperson is responsible for coordinating recommended changes to the AFP.

5.3. The COR is responsible for scheduling and arranging all AFB meetings. The COR will compile any AFB requested information, documentation, and data, together with appropriate subjective evaluations and recommendations of subject matter experts for presentation to the AFB and the AFDO.

5.4. The AFB is responsible for reviewing and evaluating information presented for review, plus any mitigating factors, and making AF recommendations for the consideration of the AFDO. The AFB will ensure that the AF recommendations accurately reflect the subjective evaluation and analysis of the information presented for review by the AFB and are in accordance with this AFP and the Award Fee Rating Standards (see Section 9 of this AF). The deliberations and recommendations of the AFB shall be recorded and maintained as part of the contract file.

5.5. The CO shall have administrative responsibility for managing the award fee process in accordance with applicable policy and guidance and shall serve as the official recorder to AFB. The CO is the liaison between the Government and the Contractor. The CO receives Contractor submitted self-assessments, coordinates the written notice of the award fee determination, to include the basis for the determination, and coordinates any Contractor debriefing with the AFDO.

5.6. The Legal Advisor is a non-voting member of the AFB and will provide advice to the AFB and AFDO and review all documents created for legal sufficiency prior to their release.

6. AWARD FEE PROCESSES:

6.1. The AF periods and the Award Fee Pool available for each AF period are defined at Sub-Line Item Number (SLIN) X019AA and X019AB of the contract Schedule of Supplies or Services, subject to the exercise of the options.

6.2. The maximum award fee (AKA award fee pool) available shall be the amount stated in Schedule B. Unearned portions of the award fee pool shall NOT “roll over” or be available for any future award fee period.

6.3. The Contractor may provide written self-assessments for the consideration of the AFB and AFDO. Any Contractor self-assessment shall be submitted to the CO within 20 calendar days following the end of the evaluation period. The Contractor may submit written information of its choice for the Government’s consideration, within the page limitations stated herein. However, the AFB and AFDO will not consider Contractor submitted surveys or survey results. The rating and amount of award fee earned is in the sole discretion of the AFB and AFDO. The rating and amount of award fee are not subject to dispute by the Contractor.

6.3.1. Contractor self-assessments for each AF period shall not exceed 20 pages total and should address each of the AF criteria stated in the AFP separately (see section 8. of this AFP).

6.4. The AFB will meet no later than 70 calendar days following the end of each award fee period to make its award fee recommendations for the consideration of the AFDO.

6.4.1. When determining its award fee recommendations for each evaluation period, The AFB will consider the results of Government conducted Beneficiary Satisfaction Surveys, information provided by the AFB Chairman regarding the Contractor’s performance, any Contractor submitted self-assessment, and all other information the AFB deems appropriate in preparing and recording its recommendations and rationale for each Award Fee Criteria.

6.5. The AFDO will issue an award fee determination within 10 calendar days of the AFB meeting. When determining the award fee, the AFDO will consider the AFP, the recommendations of the AFB, and all other information the AFDO deems appropriate, except that AFDO will not consider any survey results provided by the Contractor. When issuing the award fee determination, the AFDO shall include the rationale for the determination decision. This rationale shall be shared with the Contractor.

6.6. The Contracting Officer will issue a modification for the award fee determination within 10 calendar days of receipt of the AFDO determination.

7. BASIC (MINIMUM ESSENTIAL) OBJECTIVES OF THE CONTRACT. The Contractor is prohibited from earning any award fee when it’s overall cost, schedule, and technical performance in the aggregate is below satisfactory as outlined via the following basic, minimum essential, objectives of the contract:

1. Maximize patient safety through the utilization of best practices.

2. Apply the prescription drug benefit consistently and comprehensively in an effective, efficient, and accurate manner.

3. Execute a fiscally responsible pharmacy program.

4. Establish and maintain a high level of customer and beneficiary satisfaction.

5. Provide flexible, effective collaborative management and quality control for all services and functions.

8. AWARD FEE EVALUATION CRITERIA. In advance of each AF evaluation period, the Government will provide notice to the Contractor those AF Criteria which will receive emphasis during the coming AF evaluation period. The areas of potential emphasis are listed below:

1. Customer service--Design and conduct the experience of and interactions with TRICARE beneficiaries in a manner which clearly communicates the most efficient and cost-effective options for delivery of pharmacy services while fostering superior beneficiary satisfaction

2. Management--Manage the TPharm5 contract in a manner which achieves highly efficient and cost-effective delivery of required pharmacy services

3. Transition--Achieve frequent and meaningful coordination among many parties to ensure uninterrupted performance of services across contracts

4. Innovation—Maintain a world class pharmacy benefit for TRICARE beneficiaries through adoption of industry best practices and incorporation of commercial innovations

5. Quality Control-- Achieve a superior quality pharmacy program through an effective quality control program, including but not limited to superior level patient safety.

9. AWARD FEE RATING STANDARDS. In accordance with FAR 16.401,the Contractor’s performance will be measured against the AF Criteria selected during each AF evaluation period as detailed below in the following rating standards:

Table-1

10. CHANGES TO THE AWARD FEE PLAN.

10.1. The Government may make unilateral changes to the award fee plan if the Contractor is provided written notification by the CO before the start of the upcoming evaluation period. Both the Contractor and the Government must agree to changes to the Award Fee Plan that will affect the current evaluation period.

10.2. Potential changes to the AFP may be initiated by the AFDO, or any AFB member. The AFB Chairperson shall coordinate changes with the AFB members and present the recommended changes to the AFDO, in coordination with the CO, for final concurrence.

10.3. The CO shall coordinate approved changes to the AFP in advance with the Contractor, and will provide to the Contractor, in writing, the approved and coordinated changes to the AFP in sufficient time to allow the Contractor to adjust performance to reflect the AFP changes for the evaluation period in which the changes will be implemented.

11. CONTRACT TERMINATION. If the contract is terminated for the convenience of the Government after the start of an award fee evaluation period, the award fee deemed earned for that period shall be determined by the AFDO using the normal award fee evaluation process. After contract termination, the remaining award fee amounts allocated to all subsequent award fee evaluations periods cannot be earned by the Contractor.

End of Award Fee Plan HT9402-20-R-0002 Page 1 of 5 22 Nov 2019