Attachment_4B_YKTN_Incentive_Fee_Plan.pdf

N00024-16-R-6405

SOURCE SELECTION SENSITIVE - SEE FAR 2.101 AND 3.104

Attachment 4B

INCENTIVE FEE PLAN

NAVY SUBMARINE TORPEDO FACILITY

YORKTOWN, VA

Heavy Weight Torpedo (HWT) Intermediate (I-Level) Maintenance Solicitation Number N00024-16-R-6405

17 November 2016

SOURCE SELECTION SENSITIVE - SEE FAR 2.101 AND 3.104

Table of Contents

1.0 Introduction

1.1 Incentive Arrangements

1.2 Incentive Fee Processing

1.3 Terminology

1.4 Rework Adjudication

1.5 IMA Quality Council (IQC) and Torpedo Certification Examining Board (TCEB) Metrics (Performance Findings/Classifications)

1.5.1 CRITICAL FINDING*

1.5.2 MAJOR FINDING*

1.5.3 MINOR FINDING*

1.6 Common Job Qualification Requirements (CJQR) Achievement

1.6.1 Contractor Key Personnel Qualification achievement

1.6.2 Contractor Technician and Quality Assurance Inspector qualification achievement

2.0 Scope

2.1 Cost and Performance Incentives Application

2.1.1 Cost Incentive

2.1.2 Performance Incentive

2.1.3 Total Incentive Special Payment Provision

3.0 Reserved

4.0 Evaluation

4.1 Rework Incentive

4.2 IQC and TCEB Metrics

4.3 Key Personnel (Gapping and Qualification Achievement)

4.4 Technician and Quality Assurance Inspector (Qualification Achievement)

4.5 Calibration Readiness

5.0 Enclosure (1) – Incentive Value Spreadsheet

1.0 Introduction

This document serves to describe and explain performance incentives available to the Contractor, the incentive value, measurements and calculation for each of the incentive elements, cost and performance incorporated into the Navy Submarine Torpedo Facility Yorktown, VA Intermediate Maintenance Activity (IMA) portion of the Solicitation N00024-16-R-6405 (Note to Offerors: The above solicitation number and date of the document will be unilaterally changed to reflect the awarded Contract Number) between the Government and (Offeror Insert Company Name). Under this contract, there is a 3 month Transition period and one 9 month Base period, and four (4) one-year Option periods. Traditional performance incentives are described in Paragraph 4.0 of this document.

1.1 Incentive Arrangements

There is no incentive for the first period (Contract Line Item Number (CLIN) 4000 (transition)).

There are five incentive periods for this plan covering Contract Line Item Numbers (CLINs):

5003 (base), 6001 (option year 1), 7001 (option year 2), 8001 (option year 3), 9001 (option year 4).

The incentives for the five (5) incentive fee periods (Base and Option Years 1-4) are contingent upon the respective option being exercised.

1.2 Incentive Fee Processing

Incentive fee will be processed once per period in accordance with Paragraph 2.1.3, after the respective period of performance for CLINs 5003, 6001, 7001, 8001, and 9001 has expired.

1.3 Terminology

1.3.1 Incentive Value

Enclosure (1) to this Incentive Fee Plan (Attachment 4B) will be utilized to compute Incentive Value based on the applicable % of Target Cost for each of the performance incentive categories and sub-categories for each of the Performance CLINs.

Note to Offerors: Enclosure (1) will be provided as a MS Excel (.xls) file. There are five tabs (one for each of the Performance CLINS 5003, 6001, 7001, 8001, and 9001). The offeror shall enter the target cost of each identified CLIN into cell B2, on each tab. The spreadsheet will calculate the applicable maximum and minimum performance incentive fee in the corresponding cells for each of the performance incentive categories and sub-categories.

In the event that any CLIN is not fully funded, in accordance with the Limitation of Cost/Limitation of Funds and Allotment of Funds clauses, the value of the incentive available will be adjusted to reflect the percentage funded multiplied by the incentive pool amount. If performance CLINs are incrementally funded, the fee pool amount shall be adjusted as appropriate for each additional increment.

1.4 Rework Adjudication

Per guidance provided in SW510-AJ-PRO-010 (Torpedo Intermediate Maintenance Activity Quality System), rework is categorized as indicated below:

CAT 1, rework confined to a job sheet or portion thereof CAT 2, rework discovered at and confined to the group level CAT 3, rework to a group as a result of a Comprehensive Systems Test (CST) failure CAT 4, rework that causes disassembly of a torpedo after completion of CST

Additionally, in accordance with the SW510-AJ-PRO-010, rework is adjudicated with a root cause (personnel, planning, material, process, equipment, documentation, customer work request change, warranty, or other). For the purposes of the incentive fee metrics, only root causes of personnel or planning will be considered as applicable to the contractor.

1.5 IMA Quality Council (IQC) and Torpedo Certification Examining Board (TCEB)

Metrics (Performance Findings/Classifications)

Reference documents included in Attachment 3B (Government Furnished Information) specify guidance concerning Quality Management and related processes including: SW510-AJ-PRO-010 (Torpedo Intermediate Maintenance Activity Quality System), and SW510-AD-ORD-010 (Torpedo Certification Examining Board Procedures and Standards). Findings and related classifications applicable to the Contractor shall be utilized in this performance incentive category (definitions provided below).

1.5.1 CRITICAL FINDING*

Immediate and direct impact on safe preparation of reliable torpedoes, including Safety violations, Customer Complaints** and Work Stoppage.

1.5.2 MAJOR FINDING*

Significant issue/problem and/or management practice which creates a significant potential for negative impact on torpedo reliability, or program execution. Includes non-conformances that require rework or acceptance “as is” via a waiver or Material Review Board.

1.5.3 MINOR FINDING*

Departure from process, procedure, and/or management practice which does not, by itself, cause significant impact on safety, torpedo reliability, or program execution.

*-- Examples of each of these classifications can be found on pages 10-12 of this Incentive Plan.

The examples are not all-inclusive.

**-- Customer Complaints are defined as a formal notification by the submarine, or the Type Commander, or another IMA, etc. that is in receipt of material from NAVSUBTORPFAC YKTN

VA, IMA.

Note: All Classifications/Findings (in the Monthly IQC Metrics and during TCEB) are subject to formal root cause adjudication, followed by formal corrective action determination (to remove causation/prevent recurrence). Only classifications determined to be “personnel errors” attributable to the Contractor, will be utilized for the IQC/TCEB Metrics for Incentive Fee purposes.

1.6 Common Job Qualification Requirements (CJQR) Achievement

Reference documents included in Attachment 3B of the Contract (Government Furnished Information) specify guidance concerning qualification requirements including: SW510-AJ- PRO-010 (Torpedo Intermediate Maintenance Activity Quality System) Chapter 18, Attachment 2B (CONOPS), SUBTORPFACYORKTOWNINST 1510.1Z (Personnel Qualification Program), and SUBTORPFACYORKTOWNINST 1510.2Q Quality Assurance (QA) Qualification Program.

1.6.1 Contractor Key Personnel Qualification achievement

Will be based on the guidance cited above, and as specifically outlined in paragraph 4.3 below.

1.6.2 Contractor Technician and Quality Assurance Inspector qualification achievement

Will be based on the guidance cited above, and as specifically outlined in paragraph 4.4 below.

2.0 Scope

This document applies to the products and services provided under the Cost Plus Incentive Fee (CPIF) performance based CLINs of this contract. CLINs 5003, 6001, 7001, 8001, and 9001 are the performance CLINs for the five incentive periods, while CLINs 5004, 6002, 7002, 8002, and 9002 contain the incentive fee pool for the applicable performance CLIN. Each item is subject to:

A cost incentive described in the Incentive Fee clause, FAR 52.216-10, as completed below and

Performance incentive fees as described in this incentive fee plan

In no event shall the total fee for CLINs 5003, 6001, 7001, 8001, and 9001, if options are exercised, be greater than the maximum fee or less than the minimum fee stated in the following table:

Minimum Fee Maximum Fee CLIN 5003 0% of Target Cost 10% of Target Cost CLIN 6001 0% of Target Cost 10% of Target Cost CLIN 7001 0% of Target Cost 10% of Target Cost CLIN 8001 0% of Target Cost 10% of Target Cost CLIN 9001 0% of Target Cost 10% of Target Cost

NOTE: the above chart will be changed to add the corresponding dollar value for each CLIN at contract award.

2.1 Cost and Performance Incentives Application

Each of the CPIF CLINs under this contract is subject to multiple incentives as detailed below.

2.1.1 Cost Incentive

The cost incentive applicable to CLINs 5003, 6001, 7001, 8001, and 9001, if options are exercised, shall be executed in accordance with the Section I clause FAR 52.216-10 Incentive Fee (JUN 2011).

The Cost Incentive is based on Actual Cost/hr relative to the Target Cost/hr. For this contract, once Target Cost is established, and tables in Section B of the contract are completed with Target Rate/hr for each CLIN, a +/-2% band will be calculated around that target hourly rate. In order to earn the Cost Incentive Fee, the Contractor would have to under-run (Actual Cost/hr less than Target Cost/hr) by more than the 2% band. There is no Cost Incentive earned for the first 2% of any under-run. The same is true in the case of an over-run. There is no cost share decrementing of fee until the Contractor has over-run (Actual Cost/hr greater than Target Cost/hr) by more than 2%.

2.1.2 Performance Incentive

The performance incentives under CLINs 5003, 6001, 7001, 8001, and 9001, if options are exercised, are in addition to the cost incentive detailed in Section B of the contract and Paragraph

2.1.1 of this incentive fee plan. For administrative convenience of both the Government and the Contractor, incentive payment will be administered in accordance with Paragraph 2.1.3 entitled, “Total Incentive Special Payment Provision,” of this incentive fee plan. The fee for the performance incentive shall be reserved in CLINs 5004, 6002, 7002, 8002, and 9002. The performance incentive shall be applied as detailed below and valued in accordance with the objective parameters as outlined for each incentive period described herein.

2.1.3 Total Incentive Special Payment Provision

A final calculation of the performance incentive shall be done for each of the five incentive periods after the respective period of performance has ended for CLINs 5003, 6001, 7001, 8001, and 9001, if options are exercised. The cost incentive will be determined in accordance with Paragraph 2.1.1 above. The performance incentives will be determined in accordance with Paragraphs 4.1, 4.2, 4.3, 4.4, and 4.5. Once the cost incentive is calculated, the performance incentive will be applied in one of the two ways described below provided that in no event will the total fees associated with cost and performance incentives be greater than the maximum fees or less than the minimum fees stated in Section 2.0 of this incentive fee plan.

(a) If the Contracting Officer determines through the objective measures as outlined in this incentive fee plan that the overall value of the performance incentive fee CLIN (5003, 6001, 7001, 8001, or 9001 ) is positive, then a modification shall be made to the contract adjusting the amount of the performance incentive fee CLIN (5004, 6002, 7002, 8002, and 9002) to the amount of the determination. Upon receipt of the executed modification the Contractor will then be permitted to invoice against the performance incentive fee CLIN for the adjusted amount.

(b) If the Contracting Officer determines through the objective measures as outlined in this incentive fee plan that the overall value of the performance incentive fee is negative, then a modification shall be made to the contract zeroing out the performance incentive fee CLIN (5004, 6002, 7002, 8002, and 9002) and reducing the total billable fee on the corresponding performance CLIN (5003, 6001, 7001, 8001, or 9001) in the amount of the determination. The total billable fee for CLIN 5003, 6001, 7001, 8001, or 9001 is stated in Section B of the contract. In the event the net billable fee of the performance CLIN and the overall fee on the applicable performance incentive fee CLIN is less than $0 when added together, then the total billable fee on the performance CLIN will be reduced to $0 and the Contractor shall pay the negative net amount back to the Government via a check to the United States Treasury or credit a future invoice for the amount due, as directed by the Contracting Officer.

Notwithstanding anything else in this incentive fee plan or this contract, a performance incentive is not earned or lost until the effective date of the unilateral contract modification signed by the PCO that specifically identifies the amounts earned or lost under a particular incentive.

The contractor will earn positive performance incentives and avoid negative incentives only upon actual achievement of the applicable rating criteria in the tables set forth below, verified in accordance with the corresponding assessment criteria and assessment method. In no event shall Government failure to fund overruns beyond target cost or to otherwise allot funds to this contract, regardless of whether the contract line item has been funded to target cost, be grounds for the contractor to earn or otherwise request a positive performance incentive payment under this contract.

3.0 Reserved

4.0 Evaluation

The Incentive Fee Determining Official is the Undersea Weapons Program Manager, PMS404

The Incentive Fee Board (IFB) is comprised of the following:

Deputy Program Manager, PMS404B (IFB Chairman) In-Service Production Manager, PMS404L2 Commanding Officer, NAVSUBTORPFAC, YORKTOWN, VA

COR, NAVSUBTORPFAC, YORKTOWN, VA

NAVSEA 02 Representative

Final award of incentives is a unilateral decision determined by the NAVSEA PCO.

Any contractor request for adjustment to the incentive, is to be submitted in writing to the PCO, with copy to the COR and PMS404, within 30 days of the end of the incentive period and include rationale supporting the proposed adjustment. Any PCO authorized changes to incentives will be incorporated via modification prior to the next incentive fee period.

The following Performance Incentives shall be applicable to CLINs 5003, 6001, 7001, 8001, and 9001 (as outlined in paragraphs 4.1 thru 4.5 and in the associated tables and graphs below):

4.1 Rework Incentive

This Rework performance incentive is intended to encourage the contractor to conduct all maintenance and operations in accordance with HWT Enterprise/ISEA established procedures and quality controls/processes, and to minimize personnel and planning type rework to the maximum extent possible. Furthermore, the metric and associated rubric is weighted to incentivize reduction in Category 3 and 4 rework, and to allow for slightly more Category 1 and 2 rework; the weighting incentivizes the expectation that an issue that could result in required rework should be detected and corrected at the earliest (and least costly) point in the process. A total % of Target Cost available for this performance incentive ranges from 2.0% to -2.0%.

Specific %’s earned are as outlined in the table below.

Rework Incentive

TASK

ASSESSMENT

CRITERIA

ASSESSMENT

METHOD

RATING CRITERIA

VALUE

Rework Incentive The Rework metric will measure contractor contribution to rework.

Rework issues are captured and tracked within the IMA’s Quality metrics, adjudicated by the QA Manager, and final adjudication occurs at the IQC.

Rework adjudicated with a root cause of personnel and/or planning will be considered for this metric. Rework is Categorized as CAT 1, rework confined to a job sheet or portion thereof;

CAT 2, rework discovered at and confined to the group level; CAT 3, rework to a group as a result of a Comprehensive Systems Test (CST) failure; and CAT 4, rework that causes disassembly of a torpedo after completion of CST.

Quality Assurance Officer and/or Quality Assurance Manager reported rework events (copy provided to COR and the Contractor).

Scoring will be based on the date the rework is adjudicated, and the work area that caused the rework. The number of rework events, by Category level, that are adjudicated as “personnel” or “planning” attributable to the contractor (events per annum), will be reported/tracked, weighted, and scored in aggregate.

Weighting per rework event:

CAT 1 = 0.1

CAT 2 = 0.5

CAT 3 = 1.0

CAT 4 = 2.0

1. Total Rework Score </= 3.0 (Blue)

2. Total Rework Score

3.01 to 4.5 (Purple)

3. Total Rework Score

4.51 to 5.5 (Green)

4. Total Rework Score

5.51 to 7.0 (Yellow)

5. Total Rework Score

>7.0 (Red)

1. 2.0% of Target Cost

2. 1.0% of TC

3. 0%

4. -1.0% of TC

5. -2.0% of TC

4.2 IQC and TCEB Metrics

The IQC and TCEB Metrics performance incentive is to encourage the contractor to aggressively maintain high standards relative to each of the critical areas impacting overall IMA success (Administration, Quality Assurance, Procedural Compliance, Test and Handling Equipment, Supply, and Safety); as well as to encourage the highest level of performance during the annual TCEB Inspection. A total % of Target Cost available for this performance incentive ranges from 2.0% to -2.0%. Specific %’s earned are as outlined in the table below.

IQC and TCEB Metrics

TASK

ASSESSMENT

CRITERIA

ASSESSMENT

METHOD

RATING

CRITERIA

VALUE

The Performance metric will measure contractor contribution to the Monthly Intermediate Maintenance Activity Quality Council (IQC) metrics and annual TCEB scores for the

IMA.

6 separate areas:

Admin, QA, PROCOM, Test and Handling Equipment, Supply and Safety, will be assessed an average score. Metrics will be scored monthly in each of the areas and averaged along with the annual TCEB scores for the same areas (if received during the period of performance) for the IF period, utilizing the following criteria:

4.0 (Outstanding) = 0 Critical or Major and less than or equal to 2 Minor findings.

3.0 (Excellent) = 0 Critical 0 Major and/or 3 minor Findings

2.0 (Satisfactory) = 0 Critical and/or 1 Major and/or 4-6 Minor Findings

1.0(Marginal) = 1 Critical and/or 2 Major and/or 7-10 Minor Findings

0.0 (Unsatisfactory) = Greater than 1 Critical or greater than 2 Major or Greater than 10 Minor Findings

IMA Quality Assurance Manager and Quality Assurance Officer, will report Monthly IQC metrics to the COR. A monthly score for each area will be recorded, and then averaged, along with annual TCEB scores for each area, at the end of the year.

Monthly copy provided to the Contractor.

1. Average score

3.6 or greater

2. Average score

2.5 to 3.5

3. Average score

1.5 to 2.4

4. Average score

0.5 to 1.4

5. Average score below 0.5

1. 0.333% of Total Cost for each area meeting this rating criteria (1.0% available total)

2. 0.15% of Total Cost for each area meeting this rating criteria

3. 0% of for each area meeting this

4. -0.15% of for each area meeting this rating criteria

5. -0.333% of Total Cost for each area meeting this

Examples of “Minor” Classification

- Individual deviations from applicable documented requirements

NOTE:

An aggregate of minor deficiencies may constitute a “Major” deficiency.

“Minor” deficiencies reported as corrected from previous examinations which are repeated may be upgraded to a “Major” deficiency.

Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

Annual

TCEB Average

Administration 3.0 3.0 4.0 2.0 1.0 3.0 1.0 4.0 3.0 0.0 4.0 4.0 3.0 2.7

Quality Assurance 4.0 0.0 3.0 2.0 3.0 0.0 1.0 3.0 3.0 4.0 0.0 2.0 3.0 2.2

Procedural Compliance

0.0 0.0 1.0 0.0 1.0 0.0 0.0 0.0 0.0 1.0 1.0 0.0 2.0 0.5

Test and Handling Equipment

4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0

Safety 0.0 3.0 4.0 0.0 4.0 1.0 2.0 4.0 1.0 4.0 1.0 4.0 4.0 2.5

Supply 4.0 4.0 4.0 4.0 4.0 3.0 3.0 3.0 2.0 3.0 2.0 4.0 3.0 3.3

IQC/TCEB Performance Calculation

Table loaded with fictitious data to demonstrate calculation

•Monthly findings attributed to the contractor (ONLY) are categorized by Elements and Categories, then subjected to the Rating Criteria (table on Page 11 of the Incentive Plan)

•Organizational TCEB results for the period are considered in the distribution.

•Distribution scores are averaged over the period, then rounded to produce the period result. 0.051 or greater is rounded up.

4.3 Key Personnel (Gapping and Qualification Achievement)

The Key Personnel (Gapping and Qualification Achievement) incentive is to encourage the contractor to minimize or eliminate gaps in Key Personnel positions and encourage these personnel to achieve and maintain maximum qualification/certification achievement within the specific Work-Center. The incentivized Key positions are: Guidance and Control Lead, Test Equipment Lead, PDLR Lead, and Quality Assurance Specialist. The contractor will be motivated through incentive fee to achieve minimal gaps and 100% qualification attainment as detailed below.

A total % of Target Cost available for this performance incentive ranges from 0.5% to -0.5%.

Specific %’s earned are as outlined in the table and individual graphs below.

Key Personnel (Gapping and Qualification Achievement)

TASK

ASSESSMENT

CRITERIA

ASSESSMENT

METHOD

RATING

CRITERIA

VALUE

The Key Personnel metric will measure the contractor’s ability to minimize Key Personnel billet gaps, and the Key Personnel’s achievement of applicable qualifications

As defined in SOW

B.3.2, CONOPS

(attachment 2B), and GFI outlined in para. 1.6 in this Incentive Fee Plan. Individual Key Person gapping and qualification/certification criteria is also presented in the Key Personnel graphs below.

IMA Training/ Qualification Manager, Quality Assurance Officer, and Executive Officer will track qualifications (technical, quality assurance, and explosive qual/cert) in ASM or similar database and report monthly to the COR. The CVS Trusted Agent will track and report billet gap dates to the

COR.

1. IAW Key Personnel graphs below

1. IAW Key Personnel graphs below

G&C Lead Qualification Function

Group Level Reviewer

G&C

QAI

Explosive Qual/Cert (QA)

Sub‐Category

% of Target

Cost

(Available)

Metric

% Target Cost

Earned ("‐" is a reduction of the Fee by the indicated amount)

Billet gapped less than or equal to 30 days, AND Key

Personnel achieve all technical qualifications for their respective work‐center

0.125%

Billet gapped for 31 to 60 days, AND Key Personnel achieve all technical qualifications for their respective work‐center 0.075%

Billet gapped for 61 to 90 days, OR Key Personnel achieve

>75% of the technical qualifications for their respective work‐ center

0.000%

Billet gapped for 91 to 120 days, OR Key Personnel achieve

50%‐75% of the technical qualifications for their respective work‐center

‐0.075%

Billet gapped for more than 120 days, OR Key Personnel achieve <50% of the technical qualifications for their respective work‐center

‐0.125%

0.125%G&C Lead

PDLR Lead Qualification Function

Final Acceptance Inspector

PDLR W/I's 1, 7, 12, 15, 24, 27, & 28

Speed Control Valve Test Set Calibration ST890‐BM‐

MMD‐020 Job Sheet 7‐1 and Job Sheet 5‐9

QAI

Explosive Qual/Cert (QA)

Sub‐Category

% of Target

Cost

(Available)

Metric

% Target Cost

Earned ("‐" is a reduction of the Fee by the indicated amount)

Billet gapped less than or equal to 30 days, AND Key

Personnel achieve all technical qualifications for their respective work‐center

0.125%

Billet gapped for 31 to 60 days, AND Key Personnel achieve all technical qualifications for their respective work‐center 0.075%

Billet gapped for 61 to 90 days, OR Key Personnel achieve

>75% of the technical qualifications for their respective work‐ center

0.000%

Billet gapped for 91 to 120 days, OR Key Personnel achieve

50%‐75% of the technical qualifications for their respective work‐center

‐0.075%

Billet gapped for more than 120 days, OR Key Personnel achieve <50% of the technical qualifications for their respective work‐center

‐0.125%

0.125%PDLR Lead

Test Equipment Lead Qualification Function

Off‐Line TEM

ATE CAL (ST820‐AP‐MMI‐030 Job Sheet 5‐132)

Sub‐Category

% of Target

Cost

(Available)

Metric

% Target Cost

Earned ("‐" is a reduction of the Fee by the indicated amount)

Billet gapped less than or equal to 30 days, AND Key

Personnel achieve all technical qualifications for their respective work‐center

0.125%

Billet gapped for 31 to 60 days, AND Key Personnel achieve all technical qualifications for their respective work‐center 0.075%

Billet gapped for 61 to 90 days, OR Key Personnel achieve

>75% of the technical qualifications for their respective work‐ center

0.000%

Billet gapped for 91 to 120 days, OR Key Personnel achieve

50%‐75% of the technical qualifications for their respective work‐center

‐0.075%

Billet gapped for more than 120 days, OR Key Personnel achieve <50% of the technical qualifications for their respective work‐center

‐0.125%

0.125%TEM Lead

QA Lead Qualification Function

Final Acceptance Inspector

QAI

Explosive Qual/Cert (QA)

Sub‐Category

% of Target

Cost

(Available)

Metric

% Target Cost

Earned ("‐" is a reduction of the Fee by the indicated amount)

Billet gapped less than or equal to 30 days, AND Key

Personnel achieve all technical qualifications for their respective work‐center

0.125%

Billet gapped for 31 to 60 days, AND Key Personnel achieve all technical qualifications for their respective work‐center 0.075%

Billet gapped for 61 to 90 days, OR Key Personnel achieve

>75% of the technical qualifications for their respective work‐ center

0.000%

Billet gapped for 91 to 120 days, OR Key Personnel achieve

50%‐75% of the technical qualifications for their respective work‐center

‐0.075%

Billet gapped for more than 120 days, OR Key Personnel achieve <50% of the technical qualifications for their respective work‐center

‐0.125%

0.125%QA Lead

4.4 Technician and Quality Assurance Inspector (Qualification Achievement)

The Technician and Quality Assurance Inspector (Qualification Achievement) incentive is to encourage the contractor to maintain qualification requirements in the technical members of their work force including Quality Assurance Inspectors (QAI), not only in aggregate, but in each of the individual major Work-Centers. The contractor will be motivated through incentive fee to achieve 100% qualification attainment as detailed below.

Technicians will only be “credited” for qualifications in their primary assigned Work- Center; however, credit will be given for assigned qualifications not yet completed, provided they have not exceeded their established “Qualification Due” date (technical or

QAI).

QAI’s are a sub-set of Credited Technicians that are also qualified as QAI by primary assignment (Work-Center).

Achievement in the various Work-Centers is fundamentally scored as follows:

o Achievement of BOTH technical “AND” QAI qualification levels = POSITIVE incentive o Achievement of EITHER technical “OR” QAI qualification levels = ZERO incentive o Achievement of NEITHER technical “NOR” QAI qualification levels =

NEGATIVE incentive

A total % of Target Cost available for this performance incentive ranges from 0.5% to -0.5%.

Specific %’s earned are as outlined in the table and individual graphs below.

Technician and Quality Assurance Inspector (Qualification Achievement)

CRITERIA

ASSESSMENT

METHOD

RATING

CRITERIA

VALUE

The Technician and Quality Assurance Inspector metric will measure the contractor’s ability to maintain specific qualified technicians (by Work-Area) and associated QAIs

As defined in SOW

B.3.2, CONOPS

(Attachment 2B), and GFI outlined in para. 1.6 in this Incentive Fee Plan. Individual Work Area qualification criteria are also presented in the Work Center graphs below.

IMA Training & Qualification Manager (TQM), QA Manager, and QA Officer will track qualifications in APCS and ASM or similar databases and report monthly to the COR. The TQM will track QA related qualifications and report monthly figures to the

COR.

1. IAW Work Center graphs

1. IAW

Work Center graphs below

Sub‐Category

% of Target

Cost

(Available)

Metric

% Target Cost

Earned ("‐" is a reduction of the Fee by the indicated amount)

"=/> 7 techs qualified as designated AND >/= 4 qualified QAI" 0.200%

"<7 techs qualified as designated OR < 4 qualified QAI" 0.000%

"< 7 techs qualified as designated AND < 4 qualified QAI" ‐0.200%

"=/> 4 qualified techs AND >/= 2 qualified QAI" 0.200%

"< 4 qualified techs OR < 2 qualified QAI" 0.000%

"< 4 qualified techs AND < 2 qualified QAI" ‐0.200%

"=/> 5 qualified techs" 0.100%

"3‐4 qualified techs" 0.000%

"< 3 qualified techs" ‐0.100%

PDLR

G&C

TEM

0.200%

0.200%

0.100%

4.5 Calibration Readiness

The Calibration Readiness incentive is to encourage the contractor to maintain the highest possible percentage of required tools and measuring equipment in a calibrated condition,.

Calibration Readiness is based on the average amount of tools and measuring equipment in a calibrated condition month-to-month during the Incentive Fee Period

A total % of Target Cost available for this performance incentive ranges from 1.0% to -1.0%.

Specific %’s earned are as outlined in the table and graph below.

Calibration Readiness

CRITERIA

ASSESSMENT

METHOD

RATING

CRITERIA

VALUE

The Calibration Readiness metric will measure the contractor’s ability to maintain calibrated material (tools, gauges, equipment, etc.)

in a calibrated condition.

As defined in SOW B.3.2.6, the Contractor will manage the Calibration program.

The Contractor will be assessed on the average % maintained in a calibrated condition during each month, month-to-month during the Incentive Fee Period.

The Contractor will report average calibration (Readiness Rate) % in the Monthly Report (CDRL).

The QAO will track the same % in the applicable METCAL (or similar reporting system) report for the NSTF YKTN UIC and report % to the COR

Calibration Readiness graph

Calibration Readiness graph below

Category

Cost

(Available)

Metric

% Target Cost

Earned ("‐" is a reduction of the Fee by the indicated amount)

Calibrated tools availability >95% 1.000%

Calibrated tools availability 86‐95% 0.500%

Calibrated tools availability 85% 0.000%

Calibrated tools availability 80‐84% ‐0.500%

Calibrated tools availability <80% ‐1.000%

Calibration

Readiness 1.000%

Enclosure (1) to Attachment 4B

5.0 Enclosure (1) – Incentive Value Spreadsheet

The Sample below is provided for reference. Enclosure (1) is provided electronically to be filled in by the OFFEROR as outlined in para. 1.3.1

CLIN Target Cost Category

Cost

(Available)

Sub‐Category

% of Target

Cost

(Available)

Minimum

(Negative)

Incentive

Value

Maximum

Incentive

Value

Rework 2.00% N/A N/A ‐$48,000.00 $48,000.00

Administration 0.333% ‐$7,992.00 $7,992.00

Quality Assurance 0.334% ‐$8,016.00 $8,016.00

Procedural

Compliance

(PROCOM)

0.334% ‐$8,016.00 $8,016.00

Test & Handling

Equipment 0.333% ‐$7,992.00 $7,992.00

Safety 0.333% ‐$7,992.00 $7,992.00

G&C Lead 0.125% ‐$3,000.00 $3,000.00

PDLR Lead 0.125% ‐$3,000.00 $3,000.00

TEM Lead 0.125% ‐$3,000.00 $3,000.00

QA Lead 0.125% ‐$3,000.00 $3,000.00

PDLR 0.200% ‐$4,800.00 $4,800.00

G&C 0.200% ‐$4,800.00 $4,800.00

TEM 0.100% ‐$2,400.00 $2,400.00

Calibration

Readiness 1.000% N/A N/A ‐$24,000.00 $24,000.00

6001 $2,400,000.00

IQC Metrics 2.00%

Key Personnel

Common Joint

Qualification

Achievements and

Maintenance

0.500%

Technician &

Quality

Assurance

Inspector

Qualification

Achievement

0.500%

Enclosure (1) to 4B YKTN Incentive Value Spreadsheet

% of Target

Cost

(Available)

Sub‐Category

% of Target

Cost

(Available)

Minimum

(Negative)

Incentive

Value

Maximum

Incentive

Value

Rework 2.00% N/A N/A $0.00 $0.00

Administration 0.333% $0.00 $0.00

Quality Assurance 0.334% $0.00 $0.00

Procedural

Compliance

(PROCOM)

0.334% $0.00 $0.00

Test & Handling

Equipment 0.333% $0.00 $0.00

Safety 0.333% $0.00 $0.00

G&C Lead 0.125% $0.00 $0.00

PDLR Lead 0.125% $0.00 $0.00

TEM Lead 0.125% $0.00 $0.00

QA Lead 0.125% $0.00 $0.00

PDLR 0.200% $0.00 $0.00

G&C 0.200% $0.00 $0.00

TEM 0.100% $0.00 $0.00

Calibration

Readiness 1.000% N/A N/A $0.00 $0.00

5003 $0.00

Technician &

Quality

Assurance

Inspector

Qualification

Achievement

0.500%

IQC Metrics 2.00%

Key Personnel

Common Joint

Qualification

Achievements and Maintenance

% of Target

Cost

(Available)

Sub‐Category

% of Target

Cost

(Available)

Minimum

(Negative)

Incentive

Value

Maximum

Incentive

Value

Rework 2.00% N/A N/A $0.00 $0.00

Administration 0.333% $0.00 $0.00

Quality Assurance 0.334% $0.00 $0.00

Procedural

Compliance

(PROCOM)

0.334% $0.00 $0.00

Test & Handling

Equipment 0.333% $0.00 $0.00

Safety 0.333% $0.00 $0.00

G&C Lead 0.125% $0.00 $0.00

PDLR Lead 0.125% $0.00 $0.00

TEM Lead 0.125% $0.00 $0.00

QA Lead 0.125% $0.00 $0.00

PDLR 0.200% $0.00 $0.00

G&C 0.200% $0.00 $0.00

TEM 0.100% $0.00 $0.00

Calibration

Readiness 1.000% N/A N/A $0.00 $0.00

6001 $0.00

IQC Metrics 2.00%

Key Personnel

Common Joint

Qualification

Achievements and Maintenance

0.500%

Technician &

Quality

Assurance

Inspector

Qualification

% of Target

Cost

(Available)

Sub‐Category

% of Target

Cost

(Available)

Minimum

(Negative)

Incentive

Value

Maximum

Incentive

Value

Rework 2.00% N/A N/A $0.00 $0.00

Administration 0.333% $0.00 $0.00

Quality Assurance 0.334% $0.00 $0.00

Procedural

Compliance

(PROCOM)

0.334% $0.00 $0.00

Test & Handling

Equipment 0.333% $0.00 $0.00

Safety 0.333% $0.00 $0.00

G&C Lead 0.125% $0.00 $0.00

PDLR Lead 0.125% $0.00 $0.00

TEM Lead 0.125% $0.00 $0.00

QA Lead 0.125% $0.00 $0.00

PDLR 0.200% $0.00 $0.00

G&C 0.200% $0.00 $0.00

TEM 0.100% $0.00 $0.00

Calibration

Readiness 1.000% N/A N/A $0.00 $0.00

7001 $0.00

IQC Metrics 2.00%

Key Personnel

Common Joint

Qualification

Achievements and Maintenance

0.500%

Technician &

Quality

Assurance

Inspector

Qualification

% of Target

Cost

(Available)

Sub‐Category

% of Target

Cost

(Available)

Minimum

(Negative)

Incentive

Value

Maximum

Incentive

Value

Rework 2.00% N/A N/A $0.00 $0.00

Administration 0.333% $0.00 $0.00

Quality Assurance 0.334% $0.00 $0.00

Procedural

Compliance

(PROCOM)

0.334% $0.00 $0.00

Test & Handling

Equipment 0.333% $0.00 $0.00

Safety 0.333% $0.00 $0.00

G&C Lead 0.125% $0.00 $0.00

PDLR Lead 0.125% $0.00 $0.00

TEM Lead 0.125% $0.00 $0.00

QA Lead 0.125% $0.00 $0.00

PDLR 0.200% $0.00 $0.00

G&C 0.200% $0.00 $0.00

TEM 0.100% $0.00 $0.00

Calibration

Readiness 1.000% N/A N/A $0.00 $0.00

8001 $0.00

IQC Metrics 2.00%

Key Personnel

Common Joint

Qualification

Achievements and Maintenance

0.500%

Technician &

Quality

Assurance

Inspector

Qualification

% of Target

Cost

(Available)

Sub‐Category

% of Target

Cost

(Available)

Minimum

(Negative)

Incentive

Value

Maximum

Incentive

Value

Rework 2.00% N/A N/A $0.00 $0.00

Administration 0.333% $0.00 $0.00

Quality Assurance 0.334% $0.00 $0.00

Procedural

Compliance

(PROCOM)

0.334% $0.00 $0.00

Test & Handling

Equipment 0.333% $0.00 $0.00

Safety 0.333% $0.00 $0.00

G&C Lead 0.125% $0.00 $0.00

PDLR Lead 0.125% $0.00 $0.00

TEM Lead 0.125% $0.00 $0.00

QA Lead 0.125% $0.00 $0.00

PDLR 0.200% $0.00 $0.00

G&C 0.200% $0.00 $0.00

TEM 0.100% $0.00 $0.00

Calibration

Readiness 1.000% N/A N/A $0.00 $0.00

9001 $0.00

IQC Metrics 2.00%

Key Personnel

Common Joint

Qualification

Achievements and Maintenance

0.500%

Technician &

Quality

Assurance

Inspector

Qualification