J-12_Determination of SBSIF.pdf

Attachment J-12 N00024-25-R-4103 Determination SBSIF

PAYMENT OF SMALL BUSINESS SET-ASIDE INCENTIVE FEE

Fee payable under this contract shall be issued under CLIN 0004.

SBSIF DETERMINATION (Applicable to CLIN 0001)

The incentive fee determination covers the Contractor’s subcontracting performance over a range of all repair and alteration work, to give the Contractor flexibility in exceeding the Small Business Subcontracting Requirement. The incentive will only be available to be earned, if the Contractor meets one of the below criteria (at the delivery order level) sent by PEO Carriers, as determined by the ACO

• 25% Small Business Utilization = 0.5% Incentive

• 30% Small Business Utilization = 1.0% Incentive

• 35% Small Business Utilization = 1.5% Incentive

• 40% Small Business Utilization = 2.0% Incentive

PEO Carriers is committed to increasing small business participation in development, production and support efforts consistent with cost/benefit considerations and attainment of acquisition objectives. Evaluation and payment (by the ACO) of the incentive fee based on the utilization of Small Business Subcontracting opportunities will be conducted to the extent which the prime contractor meets the defined Small Business Subcontracting requirement above, of the direct cost per delivery order.

1. Evaluation Criteria:

a. Small Business Subcontracting Goals:

The Government desires a maximum of forty (40%) overall small business participation goal to be set by the Offeror, inclusive of the congressionally mandated five percent (5%) minimum for Small Disadvantaged Business (SDB) concerns.

The application of the subcontracting categories and percentages shall be proposed by the Contractor for each respective delivery order, if applicable for SBSIF earnings.

The following example provided in the table below identifies percentages for the purposes of demonstrating how the SBSIF may be accomplished for the evaluation period under each respective CLIN per delivery order.

b. SBSIF Available:

The SBSIF pool contingency in each of these periods will be one half (0.5%), one (1%), one point five

Table 5- SBSIF Goal Subcontract Category Goal*

Small Business (SB) overall 30.0% HUBZone Small Business (HUBZone) 10.0% Service-Disabled Veteran-Owned Small Business (SDVOSB) 10.0% Small Disadvantaged Business (SDB) 10.0% Women-Owned Small Business (WOSB) 5% Historically Black Colleges & Universities and Minority Institutions (HBCU/MI)** 5%

* Base for measurement is total subcontract dollars, SBSIF may be earned for meeting these goals.

** HBCU/MI obligations above 5% may be counted toward the SDB goal.

(1.5%) or two percent (2%) of the total cost obligated for CLIN 0001.

The incentive fee under this clause will be earned or not earned on an order basis. Failure to earn the amount available under one (1) CLIN does not preclude the Contractor from earning fee available under the remaining CLINs of the respective delivery order (should multiple CLINs be established on any one delivery order).

2. Procedures:

a. Within one (1) month of the end of each evaluation period identified in paragraph (c), the Contractor shall submit to the Contracting Officer’s Representative (COR) and ACO of each delivery order a Subcontracting Program Performance Report that includes the information required for the Government to determine the amount of SBSIF earned. At a minimum, the Contractor’s report shall include the total amount obligated against target cost for the applicable CLIN, the total labor hours worked during the evaluation period by CLIN, and any other data required for the Government to evaluate the Contractor’s Small Business Subcontracting performance.

b. Within fifteen (15) working days of receipt of the Contractor’s Report, the COR for each DO will review and evaluate the Contractor’s report to determine if all required data was provided and if any SBSIF was earned. If the Contractor’s input is inadequate, the COR will ask the Contractor to correct the inadequacies of their report and to submit a revised report.

c. Within thirty (30) working days of receipt of the Contractor’s report, the COR of each DO will meet with the ACO to make a final determination of whether any such special incentive has been earned. The ACO will issue a unilateral modification providing earned special incentive.

3. Finality of ACO’s Determination:

The parties agree that determinations of the ACO with respect to the amount of special incentives to be paid to the contractor are unilateral decisions made solely at the discretion of the Government.

Notwithstanding other terms or conditions of the contract, a payment under this incentive is not incurred or earned until the effective date of a written contract modification.

4. Payment of Special Incentive:

The Contractor will be paid the special incentive amount(s) earned upon submittal of proper invoices to the cognizant payment office. The Contractor’s invoice shall show the amount of special performance incentives payable by CLIN. The Contractor’s invoice must cite the appropriate accounting data in order for payment to be effected.

5. Single Point of Contact.

The Contractor shall establish a single point of contact to deal with the Government on its small business subcontracting activities relating to this contract. The Government encourages the Contractor to pursue activities that will support increasing the level of small business subcontracting participation under this contract including, but not limited to, internal education and training, participation in matchmaking conferences and other outreach efforts to post subcontracting opportunities.

Fee Adjustment Computation: The Government will evaluate actual performance for the fee evaluation period using the information in paragraphs (a) and (b) below reported by the Contractor IAW Contract Data Requirements List (CDRL) Data Item A005 and applying the formula in paragraph (c) below.

a. Direct costs related to all efforts within the fee evaluation period,

b. Total dollars, with corresponding percentages of direct cost during the fee evaluation period will be determined for the following:

1. Small business concerns;

2. VOSB;

3. SDVOSB;

4. HUBZone;

5. SDB;

6. WOSB, and

7. HBCU/MI.

c. Divide (b) by (a) to compute a percentage of subcontracted work (e.g., $2,025,000/$4,000,000 = .40 X 100 = 40.0%).

NOTE: FEE EVALUATION PERIODS WILL BE PROMULGATED FOLLOWING CONTRACT AWARD.