J.4 - Award Fee Determination Plan.docx

GROW Award Fee Plan

AWARD FEE DETERMINATION PLAN for Contract No. [TBD on award] with [TBD on award]

APPROVED BY:

(Signature) (Date)

Amy McQuade Contracting Officer

A. INTRODUCTION

1. This plan covers the administration of the award fee provisions of Contract No. [TBD on award], dated [TBD on award], with [TBD on award]. The Contract was awarded after completion of negotiations in accordance with the provisions of 72027622R00001.

2. The following matters, among others, are covered in the Contract:

a. The contractor is required to achieve the performance objectives and deliverables or outputs to increase agricultural production, food availability, and farmers’ incomes.

b. The term of the contract is from [TBD on award] through [TBD on award].

c. The estimated cost of performing the contract is [TBD on award].

d. The base fee is [TBD on award].

e. The maximum award fee is [TBD on award].

f. The estimated cost, base fee and award fee pool are subject to equitable adjustments on account of change or other contract modifications.

g. The award fee earned and payable will be determined periodically by the Fee Determination Official (FDO) in accordance with this plan.

h. Award fee determinations are not subject to the Disputes Clause of the Contract.

i. The FDO may unilaterally change the matters in this plan, as covered in Part E and not otherwise requiring mutual agreement under the Contract, providing the contractor receives notice of the changes at least 10 work days prior to the beginning of the evaluation period to which the changes apply.

B. ORGANIZATIONAL STRUCTURE FOR AWARD FEE ADMINISTRATION

The following organizational structure is established for administering the award fee provisions of the contract.

1. Fee Determination Official (FDO)

a. The FDO is Amy McQuade, USAID/Middle East Regional Platform/Regional Contracting Officer.

b. The FDO’s primary responsibilities are:

2. Performance Evaluation Board (PEB)

a. The Chairperson of the PEB is [insert]. The following are voting members:

(3) [TBD on award]

b. The Chairperson may recommend the appointment of non-voting members to assist the Board in performing its functions.

c. Primary responsibilities of the Board are:

C. EVALUATION REQUIREMENTS

The applicable evaluation requirements are attached as indicated below.

The percentage weights indicated in Attachment C-2 for each evaluation period, the Attachment C-3 grading table, and the Attachment C-4 award fee conversion chart are quantifying devices. Their sole purpose is to provide guidance in arriving at a general indication of the amount of fee earned. In no way do they imply an arithmetic precision to any judgmental determination of the contractor's overall performance and amount of award fee earned.

D. METHOD FOR DETERMINING AWARD FEE

A determination of the award fee earned for each evaluation period will be made promptly by the FDO after the end of the period. The method to be followed in monitoring, evaluating, and assessing contractor performance during the period, as well as for determining the award fee earned, is described below. Attachment D-1 summarizes the principal activities and schedules involved.

1. The PEB Chairperson will assign each member of the PEB an area of performance to focus and report on as Performance Monitors. This will be in addition to, or an extension of, regular responsibilities. The PEB Chairperson is not required to inform the Contractor of these assignments and the format of how the Performance Monitors will report to the PEB is at the discretion of the PEB Chairperson and will not be disclosed to the Contractor .

2. The PEB Chairperson will assure that each PEB member receives the following:

· A copy of the contract and all modifications.

· A copy of this plan along with any changes made in accordance with Part E.

· Appropriate orientation and guidance.

3. The PEB, through the use of the Performance Monitors, will monitor, evaluate, and assess contractor performance and discuss the results with contractor personnel as appropriate and the specific instructions and guidance furnished by the PEB Chairperson . As appropriate, the PEB Chairperson will request and obtain performance information from other units or personnel normally involved in observing contractor performance. Periodically, the PEB will consider performance information it obtains and discuss the reports and information with monitors or other personnel, as appropriate. As required, representatives of the PEB will meet with the contractor and discuss overall performance during the period.

4. Within 30 days after the end of each evaluation period, the PEB will meet and consider all the performance information it has obtained. At the meeting, the Performance Monitors and other relevant staff will discuss their evaluation as appropriate. The PEB will summarize its preliminary findings and recommendations in the Performance Evaluation Board Report (PEBR).

5. Within 75 days after the end of each evaluation period, the PEB will share its preliminary findings and recommendations with the contractor in any manner that the PEB Chairperson finds appropriate. The contractor can request a meeting to discuss its preliminary findings and recommendations within 3 days of receiving this information or receiving the preliminary findings and recommendations. Any such meeting should be held within 85 days after the end of the evaluation period and shall include any personnel determined by the PEB Chairperson to be appropriate. At this meeting or at any time preceding it, the contractor will be given an opportunity to submit any relevant information. After this meeting, the PEB will consider the information provided and finalize the PEBR no later than 95 days after the end of each evaluation period.

6. Upon completion, the PEB Chairperson will submit the PEBR to the FDO for use in determining the award fee earned. The report will include a recommended range of award fee with supporting documentation. When submitting the report, the Chairperson will inform the FDO whether the contractor desires to present any matters to the FDO before the award fee determination is made.

7. The FDO will consider the PEBR and discuss it with the PEB Chairperson or other personnel, as appropriate. If requested by the contractor, or if the FDO considers it appropriate, the FDO will meet with the contractor for discussions. If requested by the FDO, the PEB Chairperson and any other personnel involved in performance evaluation may be required to attend the meeting with the contractor.

8. The FDO will determine the amount of award fee earned during the period. The FDO's determination of the amount of award fee earned and the basis for this determination will be stated in the Award Fee Determination Report (AFDR). The report will be signed by the FDO and provided to the contractor no later than 120 days after the end of each evaluation period (the contractor should use it as an attachment to its voucher requesting payment of the award fee).

9. Reallocation is the process by which the Government moves a portion of the available award fee from one evaluation period to another due to such things as Government-caused delays, special emphasis areas, changes to the Performance Work Statement (PWS), etc. Reallocation is not normally associated with the contractor’s performance. Reallocation may be done unilaterally if projected before the start of the affected award-fee evaluation period. Within an award-fee evaluation period, reallocation can only be done by mutual agreement of both parties.

E. CHANGES IN PLAN COVERAGE

1. Right to Make Unilateral Changes

Any matters covered in this plan not otherwise requiring mutual agreement under the contract, except the designated FDO, may be changed unilaterally by the FDO prior to the beginning of an evaluation period by timely notice to the contractor in writing. The changes will be made without formal modification of the contract.

2. Method for Changing Plan Coverage

The method to be followed for changing plan coverage is described below. Attachment E-1 summarizes the principal actions and schedules involved.

a. Personnel involved in the administration of the award fee provisions of the contract are encouraged to recommend changes in plan coverage with a view toward changing management emphasis, motivating higher performance levels, or improving the award fee determination process. Recommended changes should be sent to the PEB for consideration and drafting.

b. Prior to the end of each evaluation period, the PEB will submit changes applicable to the next evaluation period for approval by the FDO with appropriate comments and justification, or inform the FDO that no changes are recommended for the next period.

c. 10 work days before the beginning of each evaluation period, the FDO will notify the contractor in writing of any changes to be applied during the next period, or that there are no changes. If the contractor is not provided with this notification, or if the notification is not provided within the agreed-to number of work days before the beginning of the next period, then existing plan coverage will continue in effect for the next evaluation period.

ATTACHMENT C-1 to GROW for Contract No. [insert]

EVALUATION PERIODS AND AVAILABLE AWARD FEE

The following table sets forth the maximum award fee that Contractor can earn for each of the five evaluation periods.

ATTACHMENT C-2 to GROW for Contract No. [TBD on award]

PERFORMANCE AREAS AND EVALUATION CRITERIA

The performance areas to be evaluated are identified below. The evaluation criteria for each evaluation period are set forth in the tables below, as indicated.

Evaluation Period 1

Evaluation Period 2

Evaluation Period 3

Evaluation Period 4

Evaluation Period 5

ATTACHMENT C-2.1 to GROW for Contract No. [TBD on award]

EVALUATION CRITERIA FOR PERFORMANCE AREA NO. 1

Description of Area: Management and Business Relations – this area covers a broad spectrum of contractor’s management practices and relationships with USAID and other key actors.

Subareas to Consider: The subareas that will be considered include, but are not limited to:

· Responsiveness, and the effectiveness of the responses, to USAID/START requests and directions;

· Quality and timeliness of contract deliverables (e.g. work plans, MEL Plan, reports etc.);

· Success in recruiting and retaining appropriate staff; and

Basis or Standard for Measuring Performance: The basis for measuring performance will be the judgment of the PEB and FDO based, in part, on the actual dates deliverables are accepted.

ATTACHMENT C-2.2 to GROW for Contract No. [TBD on award]

EVALUATION CRITERIA FOR PERFORMANCE AREA NO. 2

Description of Area: Cost Control – this area relates to the contractor’s ability to limit costs to achieve the maximum results for the lowest cost.

Subareas to Consider: The subareas that will be considered include, but are not limited to:

· Comparison of contractor’s actual expenditures with planned costs;

· Contractor’s efforts and processes to avoid unnecessary costs; and

· Contractor’s demonstrated ability to deliver outputs and results at the lowest reasonable cost.

Basis or Standard for Measuring Performance: The basis for measuring performance will be the judgment of the PEB and FDO based, in part, on submitted documents such as the Contractor’s pre-award budget, quarterly financial reports and accruals and requests for approvals for purchase of equipment and international travel.

ATTACHMENT C-2.3 to GROW for Contract No. [TBD on award]

EVALUATION CRITERIA FOR PERFORMANCE AREA NO. 3

Description of Area: Achievement of Results – this area relates to contractor’s success in achieving key Contract results and outputs.

Subareas to Consider: This subarea will focus on achievement of the results specified in the Contract.

Basis or Standard for Measuring Performance: While the judgment of the PEB and FBO will be applied as appropriate, the main basis for measuring performance under this sub area will focus on contractor's verifiable success in meeting the targets for the relevant evaluation period for the following indicators specified in the approved Monitoring and Evaluation Plan:

[Insert Performance Standards/Indicators/Outputs based on Contractor’s PWS]

The PEB and FDO can, at their discretion, rely on other information that is relevant to the contractor's success in achieving results.

ATTACHMENT C-3 to GROW for Contract No. [TBD on award]

GRADING TABLE

The following grading table should be used to determine the performance points for each evaluation area.

Evaluators will determine which Adjectival Grade best fits the Contractor’s performance in the relevant area during the relevant performance period. After the assignment of an adjectival grade is established, the evaluator will determine the appropriate number of points to be assigned to that evaluation area for that period from within the range established above.

ATTACHMENT C-4 to GROW for Contract No. [TBD on award]

AWARD FEE CONVERSION CHART

Once individual evaluators have determined their scores, the PEB will use the following quantifying device to convert evaluator performance points into percentage of available award fee.

Management and Business Relations

Cost Control

Achievement of Results

The PEB, after following the procedures and methods specified above in Section D, will determine the performance points assigned to each evaluation area for that rating period. The PEB can do this by the use of averages or through consensus, at its discretion. Once performance points have been assigned for each evaluation area, the PEB will use the table above to determine the recommended award fee for that period. This calculation will be based on the performance points times the weight specified in Attachment C-2 times the available award fee specified for the period specified in Attachment C-1.

ATTACHMENT D-1 to GROW for Contract No. [TBD on award]

ACTIONS AND SCHEDULES FOR AWARD FEE DETERMINATIONS

The following is a summary of the principal actions involved in determining the award fee for each evaluation period.

The PEB will establish appropriate lists of subsidiary actions and schedules to meet the above schedules, although these activities and schedules will be subject to the discretion of the PEB and will not be disclosed to the Contractor.

ATTACHMENT E-1 to GROW for Contract No. [TBD on award]

ACTIONS AND SCHEDULES FOR CHANGING PLAN

The following is a summary of the principal actions involved in changing the plan.

The PEB will establish appropriate lists of subsidiary actions and schedules to meet the above schedules, although these activities and schedules will be subject to the discretion of the PEB and will not be disclosed to the Contractor.

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