DRAFT SECTION H Special Contract Requirements.docx

DRAFT

Section H - Special Contract Requirements

SPECIAL CONTRACT REQUIREMENTS

H-1 PERFORMANCE MEASUREMENT FRAMEWORK

1. In order to avoid disruption to CNATRA’s mission, the Government has established three areas critical to performance. These areas are established in the Performance Measurement Framework (PMF). For each area of the PMF, the Government has defined Contract Minimum thresholds that must be met. The Government will evaluate the Contractor’s performance and make incentive fee payments on a quarterly basis. All calculations for Contract Minimum acceptable thresholds and PMF measures assume a three month evaluation period.

2. Contract minimum thresholds:

2.1. Performance Metric (PM). The Contractor shall have an Aircraft Not Available Ratio (ANAR) less than one, and the Training Mission Completion Rate (TMCR) shall be 0.98 (98%) or greater as defined below.

2.2. Quality Metric (QM). The Contractor shall have less than five Major Corrective Action Requests (CARMAJ) and no Cure Notice Corrective Action Requests (CARCURE), Critical Corrective Action Requests (CARCRIT), or Repeated or Uncorrected Corrective Action Requests (CARREP) as defined below.

2.3. Safety Metric (SM). Contractor shall have no maintenance related Mishaps (MHMR), zero Not Safe For Flight Released (SFFR) aircraft incidents, and less than two Government initiated Maintenance Related Hazard Reports (HRMR) for the reporting period, as defined below.

3. Performance Measurement Framework Incentive (PMFI):

3.1. The Contractor is eligible to earn additional funding beyond the Contractor’s proposed costs up to $750,000 per quarter, under the Performance Measurement Framework Incentive CLIN. If the Contractor exceeds Contract Minimums for all three areas of the PMF, then it is eligible for the Performance Measurement Framework Incentive CLIN in accordance with the following formula:

PMFI = [(0.30) PM + (0.35)QM + (0.35)SM] x $750,000

4. Beginning with the second quarter, the Fixed Maintenance for NAS Whiting Field CLIN will be decremented up to $750,000 , per quarter, as a disincentive for not meeting contract performance minimums. The Contractor shall adjust the last invoice of each option period (before submission to the Government) for Fixed Maintenance for NAS Whiting Field CLIN to reflect the incurred decrement, as calculated in accordance with paragraphs 5.1 to 5.3. The Contractor shall attach a detailed worksheet to the DD250 showing all calculations.

4.1. If the Contractor fails to meet any one of the Contract Minimums for the quarter, the Contractor will not be eligible for the Performance Measurement Framework Incentive CLIN for any of the PMF areas.

4.2. If the Contractor fails to meet any two of the Contract Minimums for the quarter, the Contractor will not be eligible for the Performance Measurement Framework Incentive CLIN and will be decremented $375,000 from the Fixed Maintenance for NAS Whiting Field CLIN.

4.3. If the Contractor fails to meet all three of the Contract Minimums for the quarter or any one of the Contract Minimums consecutively for two periods of performance, it will not be eligible for the Performance Measurement Framework Incentive CLIN and will be decremented $750,000 from the Fixed Maintenance for NAS Whiting Field CLIN.

PERFORMANCE METRIC (PM) CALCULATIONS FOR PMF

PM component of the PMF is defined as a quantification of success in meeting CNATRA’s Mission requirements. It is composed of the following:

1. Training Mission Completion Rate (TMCR)

1.1. TMCR measures the Contractor’s performance (expressed as a percentage) in providing aircraft capable to accomplish the assigned missions required by the daily training scheduled. The Contractor shall provide the quantities of aircraft required to meet 100% of the training requirements on a daily basis at NAS Whiting Field. A Training Mission is considered successfully completed if it executes its assigned training mission without launch delays or aborts attributable to maintenance. The Contractor will report the daily, monthly, and quarterly TMCR based on the total training missions achieved. The On-Site Government Representative (OGR) will measure and monitor the reported TMCR. If a training mission is canceled, incomplete, or not launched, due to no fault of the Contractor, the Government will consider it satisfied. In the event of a disagreement between the Government and the Contractor regarding the cause of a training mission cancellation, the decision of the OGR shall be final. Demonstration of the TMCR will start with the date of full performance.

1.2. Training Mission Completion Rate (TMCR):

TMCR (%) = TMC / TMS

Where: TMS = Training Missions Scheduled TMC = Training Missions Completed

2. Aircraft Not Available Ratio (ANAR)

2.1. ANAR measures the Contractor’s ability to provide aircraft IAW 5.6.5 of the PWS. ANAR is calculated by dividing the summed number of aircraft not available at each day’s time intervals, IAW with applicable PWS Table(s) 5.6.5.2 to 5.6.5.8 by the number of Fly Days (FD) in the quarter.

Aircraft Not Available Ratio (ANAR): ANAR= MG/FD Where: MG = Missed Gates is the summed number of aircraft not available at each day’s time intervals, IAW with applicable PWS Table(s) 5.6.5.2 to 5.6.5.6.

FD is the total number days with an associated flight schedule (e.g. In the third fiscal quarter of 2010, FD = April (22 days) + May (21 days) + June (22 days) = 64 fly days).

3. Performance Metric (PM) calculation:

3.1. If ANAR is > 1 or TMCR < 0.980 then PM = 0.

3.2. If ANAR is less than one (1) then the Performance Metric (PM) is the TMCR times the quantity one (1) minus Aircraft Not Available Ratio (ANAR) end-quantity squared.

PM = TMCR(1-ANAR)2

3.3. Example: There were 14 Missed Gates (MG) and 16 aircraft cancelled due to maintenance out of 1088 scheduled flights in the third quarter fiscal 2010 = 64 fly days (see above).

TMCR = TMC/TMS = (1088-16)/1088 = 0.985 which is greater than 0.980.

ANAR = 14/64 = 0.219 which is less than 1.

PM = TMCR(1-ANAR)2 = 0.985(1-0.219)2 = 0.60

3.3.1. In the PMFI calculation:

PMFI = [(0.30) (0.60) + (0.35)QM + (0.35)SM] x $750,000

QUALITY METRIC (QM) CALCULATIONS FOR PMF

The QM component of the PMF is defined as the quantification of Quality achieved by the Contractor. It is composed as follows:

1. Government surveillance is comprised of Internal Audits, In-Process Monitors, and Observations conducted by government Quality Assurance personnel. During these quality events deficiencies found may result in a Corrective Action Request (CAR), depending on severity. The QM measurement will be determined only from Government generated CARs. The Contractor is encouraged to identify deficiencies and generate internal CARs. These Contractor initiated CARs will not be used in the below QM calculations (i.e. the Contractor will not be decremented because of their own internal CARs).

1.1. The QM will be determined using the following rules:

1.1.1. CARCURE = Number of Level 3 or 4 Corrective Action Requests

1.1.2. CARCRIT = Number of Level 2 Corrective Action Requests that have been generated in response to a serious maintenance deficiency that are classified as safety of flight

1.1.3. CARMAJ = Number of Level 2 CARs that have been generated in response to a maintenance deficiency that does not impact safety of flight

1.1.4. CARREP = Number of CARs that were previously generated and not corrected by contractor, then found in subsequent quality events

1.1.5. QM is calculated by the following:

1.1.5.1. IF CARCURE =0 AND CARCRIT = 0 AND CARREP= 0 AND CARMAJ = 0

THEN QM = 1.0

1.1.5.2. IF CARCURE =0 AND CARCRIT = 0 AND CARREP= 0 AND CARMAJ = 1

THEN QM = 0.8

1.1.5.3. IF CARCURE = 0 AND CARCRIT = 0 AND CARREP= 0 AND CARMAJ = 2

THEN QM = 0.6

1.1.5.4. IF CARCURE = 0 AND CARCRIT = 0 AND CARREP= 0 AND CARMAJ = 3

THEN QM = 0.4

1.1.5.5. IF CARCURE = 0 AND CARCRIT = 0 AND CARREP= 0 AND CARMAJ = 4

THEN QM = 0.2

1.1.5.6. IF CARCURE > 0 OR CARCRIT > 0 OR CARREP > 0 OR CARMAJ > 5

THEN QM = 0

2. Example: Contractor receives two Level 2 CARS not impacting safety of flight in the quarter. In accordance with 1.1.1.3, a non-safety of flight Level 2 CAR translates to CARMAJ. In accordance with 1.1.2.3, two CARMAJ equates to a QM value of 0.6.

2.1. In the PMFI calculation:

PMFI = [(0.30) PM + (0.35)(0.60) + (0.35)SM] x $750,000

SAFETY METRIC (SM) CALCULATIONS FOR PMF

The SM component of the PMF is defined as the quantification of Safety realized by the contractor. It is composed of the following measures:

1. MISHAPS (MH)

1.1. MHMR = Number of maintenance related mishaps per quarter.

2. SAFE FOR FLIGHT (SFF)

2.1. SFFR = Number of not Safe For Flight aircraft released by the Contractor per quarter.

3. HAZREPS (HR)

3.1. HAZREPs are defined in accordance with OPNAVINST 3750.6R CH-4.

3.2. HRMR = Number of maintenance related HAZREPs generated by the Government due to deficiencies of the maintenance Contractor.

3.2.1. Contractor generated HAZREPS are not calculated in the HRMR.

4. Safety Metric

4.1. IF SFFR >0 or MHMR >0 or HRMR >1 THEN SM = 0

4.2. IF SFFR = 0 and MHMR =0 THEN

4.2.1. IF HRMR = 0 during the quarter THEN SM = 1.0

4.2.2. IF HRMR = 1 during the quarter THEN SM = 0.40

4.2.3. IF HRMR = 2 or greater during the quarter THEN SM = 0.0

5. Example: There are zero Not Safe For Flight Released aircraft and zero Maintenance Related Mishap events and one HRMR event during the quarter then, in accordance with 4.2.2, the Safety Metric equates to 0.40 or a Safety Metric of 40%.

5.1. In the PMF Incentive calculation:

PMFI = [(0.30)PM + (0.35)QM + (0.35)(0.40)] x $750,000

H-2 ADJUSTMENT OF PAYMENT FOR AIRCRAFT NOT RECEIVED

The Contractor shall provide aircraft to meet the requirements of the Fixed Maintenance for NAS Whiting Field CLIN. Failure to meet the requirements of the Fixed Maintenance for NAS Whiting Field CLIN will result in the Contractor incurring a disincentive reduction in the amount invoiced to the Fixed Maintenance for NAS Whiting Field CLIN. The amount of reduction will be determined by the formula below and rounded up to the next dollar.

Invoice Reduction = (Fixed Maintenance For 119 Aircraft/ Quantity Aircraft Required, Per the Fixed Maintenance for NAS Whiting Field CLIN/Fly Days Per Quarter) X Quantity of Aircraft Not Provided

NOTE: The number of fly days per quarter is the total number of weekdays in the quarter (regardless of whether the Navy chooses to fly those days or not) minus the number of federal holidays that occur on weekdays during the quarter. Saturdays and Sundays are not included in this calculation.

EXAMPLE

Assume:

Fixed Maintenance for NAS Whiting Field extended price, SUBCLIN XX01AC, = $1,213,071.00 Quantity Aircraft Required per SUBCLIN XX01AC = 88 Fly Days in the third fiscal quarter of 2010 = April (22) + May (21) + June (22) – Memorial Day (1) = 64 fly days.

Quantity of Aircraft Not Provided = 17

Invoice reduction = ($1,213,071.00 / 88 / 64) X 17 = $215.39 X 17 = $3,661.63 rounded up = $3,662