J-6_Attachment_Award_Term_Plan.pdf

ATTACHMENT J-6

Award Term Plan

For

THIRD PARTY ADVANCED PLANNING IN

SUPPORT OF DDG 51/ CG 47 CLASS SHIPS

AWARD TERM PLAN

i

TABLE OF CONTENTS

Section Title Page

1.0 Introduction 1

2.0 Organization 1

3.0 Responsibilities 1

4.0 Award Term Processes 2

5.0 Award Term Plan Change Procedure 3

ANNEXES

Annex Title

1 Award Term Allocation by Evaluation Periods

2 Evaluation Criteria

1.0 INTRODUCTION

Under this contract, the Contractor has the ability to earn conversion of up to two (2) otherwise un-exercisable award terms (See CLINs in Annex 1) into options that the Government retains the unilateral right to exercise at the Government’s sole discretion. This Award Term Plan (ATP) provides the basis for evaluation of the Contractor’s performance to determine whether the Contractor has earned the conversion of award terms into exercisable options.

This contract consists of one (1) one-year base period, two (2) one-year options, and two (2) one-year award term options. Each of the award term options has an associated evaluation period as shown in Annex 1. After each of the evaluation periods, the Government will review the Contractor’s performance against the performance parameters outlined in Annex 2, Evaluation Criteria, and determine whether the Contractor’s performance is adequate to earn a conversion of an award term into an exercisable option.

The evaluation criteria of this plan may be changed during contract performance by following the procedures detailed in paragraph 5.0.

Conversion of an award term into an exercisable option does not guarantee that the resulting option will be exercised by the Government. In order to exercise an option, the Contracting Officer shall follow the procedures stated in FAR 17.207. These procedures apply equally to option line items established at the time of contract award as well as to converted award terms. Decisions to exercise options are at the sole discretion of the Contracting Officer.

If at any time the Government does not exercise an option, that option and any subsequent options shall be considered void. For example, if the Contractor has earned conversion of the first award term, but the Government fails to exercise such option, then the contract shall end upon completion of the third year’s period of performance. Declining to exercise an option is not a termination of the contract. As such, the Contractor shall not be entitled to any costs arising out of or related to any unexercised options or any award terms.

2.0 ORGANIZATION

The award term organization includes the Term Determining Official (TDO) and an Award Term Review Board (ATRB), which consists of a Chairperson, the Contracting Officer’s Representative (COR), functional area participants, advisory members, and selected performance monitors.

3.0 RESPONSIBILITIES

a. Term Determining Official. The TDO (typically the Program Manager) reviews the recommendations of the ATRB, considers all pertinent data, and determines whether the Contractor’s performance earned the conversion of an award term into an exercisable option. All TDO decisions are unilateral actions made solely at the discretion of the Government. The TDO may designate an alternate to act in his/her place should the need arise.

b. Award Term Review Board Chairperson. The ATRB Chairperson (typically the COR) chairs the meetings of the ATRB and appoints the non-mandatory members of the board. The ATRB Chairperson briefs the TDO on Contractor’s overall performance and recommends whether the Contractor’s performance earned the conversion of an award term into an exercisable option. He or she may also recommend award term plan changes to the TDO.

c. Award Term Review Board Members. ATRB members review the performance monitors’ evaluation of Contractor’s performance, consider all information from pertinent sources, including Contractor’s self-assessments, and prepare a summary report supporting the recommendation to the TDO as to whether the Contractor’s performance earned the conversion of an award term into an exercisable option. The ATRB may also recommend award term plan changes to the ATRB Chairman.

d. Procuring Contracting Officer (PCO). The PCO provides written award term conversion notifications to the Contractor and modifies the contract to reflect the TDO’s decision, which will be based on the ATRB’s recommendations. The PCO may also issue written notifications to the Contractor when it is deemed necessary to highlight areas of Government concern.

e. Performance Monitors (Optional). Performance monitors maintain written records of Contractor’s performance so that a fair and accurate evaluation is obtained. Monitors prepare interim and formal evaluation reports, and submit them as requested by the ATRB.

4.0 AWARD TERM PROCESS

a. Evaluation Criteria. Evaluation criteria and rating/performance standards are provided in Annex

2. Evaluation criteria and their relative weight may change during the life of the contract.

Changes to evaluation criteria will be made in accordance with paragraph 5.0 below.

b. Interim Evaluations. Interim evaluations will be conducted within the first twelve (12) months after contract award. At the discretion of the TDO, interim evaluations may take place more frequently. Interim evaluations are advisory, providing performance feedback, and, while not resulting in the conversion of an award terms, will be used by the Government to identify performance trends. The ATRB Chairman or designee notifies ATRB members and performance monitors at least two (2) weeks before the interim evaluation date. Performance monitors submit their interim evaluations to the ATRB by the interim evaluation date. The ATRB determines interim evaluation ratings and prepares a brief summary report of the strengths and weaknesses of the Contractor. The ATRB Chairman provides the applicable summary report to the TDO and the PCO who will then forward the report to the Contractor no later than fourteen (14) calendar days from the date of the report. TDO approval of interim evaluations is not required. Contractor self-assessments may be required for interim evaluations. Changes to the award term plan may be proposed at this time.

c. Formal Assessments. The ATRB Chairman will notify ATRB members and performance monitors thirty (30) calendar days prior to the scheduled assessment date. Performance monitors will submit their assessments to the ATRB no later than fifteen (15) calendar days prior to the formal assessment date.

d. Self Evaluation. The Contractor shall submit a written self-assessment to the Contracting Officer Representative (COR) with a copy to the ATRB Chairman and the PCO no later than thirty (30) calendar days prior to the assessment date. Self-assessments should address applicable evaluation criteria and should also contain information to demonstrate the validity of this self-assessment.

The self-assessment may not exceed twenty (20) pages or one (1) page per technical instruction, whichever is greater. If the Contractor is a large business, this self-evaluation must include the most recent Standard Form 294, Subcontracting Report for Individual Contract, for the contract.

This self-assessment will be used in the ATRB's evaluation of the Contractor's performance during this period.

e. The ATRB Chairman may convene one or more forums with the Contractor and performance monitor personnel present to clarify and resolve differing viewpoints represented on the Contractor self-assessments and performance monitor assessments.

f. The ATRB shall prepare a summary report of its findings and provide a recommendation about whether the Contractor’s performance earned the conversion of an award term into an exercisable option. The ATRB Chairman shall brief the assessment report and make a recommendation to the TDO. The TDO will determine, within thirty (30) calendar days of the formal assessment date, whether the Contractor’s performance was sufficient to earn conversion of an award term into an exercisable option. The PCO will provide a written notification informing the Contractor of TDO’s decision. If the award term is earned, the PCO will process a unilateral contract modification to convert the applicable award term into an exercisable option.

5.0 AWARD TERM PLAN CHANGE PROCEDURE

Either the Government or the Contractor may propose changes to the ATP. The Government may make unilateral changes to the plan for evaluation periods that have not commenced. Any Government or Contractor proposed changes, to take effect in an evaluation period that has already begun, shall be bilaterally negotiated. The PCO will provide written notification of plan changes to the Contractor prior to the changes taking effect. If the PCO does not give written notice to the Contractor of any change to the evaluation criteria prior to the start of a new evaluation period, then the same criteria listed for the preceding period will be used in the following evaluation period.

ANNEX 1

AWARD TERM EVALUATION PERIODS

The evaluation period for each of the award term are provided in the table below:

Award Term Period

Evaluated From

Evaluated To

Evaluated CLINs

First* Contract Award 18 months thereafter 0001, 0003, 0005, 0006, 1100, 3100, 5100, 6100,8100

Second* End of First Award Term Period

12 months thereafter 1100, 3100, 5100, 6100, 1200, 3200, 5200, 6200,8100,8200

*Evaluation Period only applies if evaluated CLINs are exercised.

ANNEX 2

EVALUATION CRITERIA

The tables below list the performance characteristics under three categories: Unsatisfactory, Satisfactory, and Exceptional. To earn conversion of an award term, the Government’s assessment of the Contractor’s performance must not include any unsatisfactory performance characteristics within the applicable evaluation period. Nevertheless, the Government reserves the unilateral discretion to offset one minor instance of unsatisfactory performance, as outlined below, with a finding that the Contractor exhibited an equivalent or higher number of exceptional performance characteristics during the same evaluation period, provided the unsatisfactory instances had minimal impact to quality, cost, or schedule. Retaining this discretion in no way obligates the Government to exercise it during any evaluation period.

QUALITY OF WORK/TIMELINESS

PERFORMANCE CHARACTERISTICS

UNSATISFACTORY SATISFACTORY EXCEPTIONAL

Contractor continues to follow unsuccessful past practices that prevent satisfactory contract performance.

Contractor displays knowledge of contract requirements and is able to modify unsuccessful processes to meet requirements.

Contractor displays exceptional knowledge of contract requirements evidenced by adaptability to work processes to exceed contract requirements.

Deliverables are incomplete or contain significant inaccuracies.

Discrepancies are major and require extensive time and effort to correct.

Deliverables are complete and accurate. Discrepancies are minor and easily corrected.

All deliverables exceed requirements and are submitted in a format that is complete, clear, concise, technically accurate and easily understood. Any corrections are very minor in nature and are expeditiously corrected.

Less than 95% of deliverables meet contractually required schedule.

At least 95% of deliverables meet contractually required schedule.

100% of deliverables meet contractually required schedule.

Trended number of request for contract changes attributed to planning product errors continues to increase.

Trended number of request for contract changes attributed to planning product errors decreases.

Trended number of request for contract changes attributed to planning product errors has decreased more than 15% compared to the base year.

Contractor fails to identify problems in a timely manner. Solutions, when and if implemented, have a negative impact on cost and/or schedule.

Problems are identified by the contractor in a timely manner. Contractor provides sufficient information on alternate solutions. Solutions are implemented with limited adverse impact to cost and/or schedule.

Contractor practices proactive management to identify and anticipate problems prior to adverse impact. Contractor provides organized and detailed alternatives, including risk assessments, trade off analysis between cost, schedule and performance, plan of action and implementation schedule.

Solutions are implemented with no impact to cost or schedule.

Organizational structure fails to provide qualified personnel with duties, responsibilities and authority necessary to meet requirements. Lines of communication fail to facilitate timely exchange of information, both technical and contractual in order to meet requirements.

Organizational structure provides for qualified personnel assigned with duties, responsibilities, and authority necessary to meet requirements. Lines of communication facilitate timely exchange of information, both technical and contractual in order to meet requirements.

Organizational structure provides for highly qualified personnel assigned with duties, responsibilities, and authority necessary to exceed requirements. Lines of communication are well defined, clearly understood, and always facilitate rapid exchanges of information, both technical and contractual, in order to exceed requirements.

COST PERFORMANCE

The hourly rate for any CPFF CLIN is greater than 5% of the negotiated hourly rate for that CLIN.

The hourly rate for at least two (2) CPFF CLINs is equal to or less than the negotiated hourly rate.

The hourly rate for at least two (2) CPFF CLINs is 5% or less than the negotiated hourly rate.

SUBCONTRACTORS

Less than 95% of subcontractor invoices are paid within the terms and conditions of their contract with the prime, as reported in CDRL A004.

The contractor fails to meet the small business subcontracting and/or reporting requirements identified in Attachment 10.

At least 95% of subcontractor invoices are paid within the terms and conditions of their contract with the prime, as reported in

CDRL A004.

The contractor meets the small business subcontracting and reporting requirements identified in Attachment 10.

100% of the subcontractor invoices are paid within the terms and conditions of their contract with the prime, as reported in CDRL A004.

The contractor exceeds the small business subcontracting reporting requirements identified in Attachment 10.

Award Term Plan