Attachment 10 Performance Incentive Fee Plan - Amend 0001.pdf

ATTACHMENT 10

PERFORMANCE INCENTIVE FEE PLAN

Applicable to PIO Material CLIN 0006

1.0 INTRODUCTION

1.1. Purpose

The purpose of this plan is to establish the incentive for early delivery of material. This plan will address the predetermined incentive objectives, formula-type incentives, responsibilities, and procedures for evaluating Contractor performance and determining the performance incentive fee earned under this contract. See FAR 16.402-2, entitled “Performance incentives” and DFARS PGI 216.402-2, entitled “Technical performance incentives”.

1.2. Objective

The performance incentive fee is designed to provide economic motivation for the Contractor to deliver PIO alteration material early to support the Navy’s objectives in accordance with the clause entitled Provisioned Items Order - ALT I (NAVSEA) (APR 2015) and the Statement of Work. The purpose of this plan is to clearly articulate the performance incentives, and to establish the procedures for determining and funding performance incentive fee earned.

1.3. Performance Incentive Fee Periods

The Government will calculate Contractor performance for each evaluation period semi-annually.

Performance evaluation periods are identified below:

EVALUATION PERIODS

1st Evaluation Period Contract Award through six months after Contract Award

2nd Evaluation Period 1st day after 1st Evaluation Period through six months after conclusion of 1st evaluation period 3rd Evaluation Period 1st day after 2nd Evaluation Period through six months after conclusion of

2nd evaluation period 4th Evaluation Period 1st day after 3rd Evaluation Period through six months after conclusion of 3rd evaluation period 5th Evaluation Period 1st day after 4th Evaluation Period through six months after conclusion of 4th evaluation period 6th Evaluation Period 1st day after 5th Evaluation Period through six months after conclusion of 5th evaluation period 7th Evaluation Period 1st day after 6th Evaluation Period through six months after conclusion of 6th evaluation period 8th Evaluation Period 1st day after 7th Evaluation Period through six months after conclusion of 7th evaluation period 9th Evaluation Period 1st day after 8th Evaluation Period through six months after conclusion of 8th evaluation period 10th Evaluation Period 1st day after 9th Evaluation Period through six months after conclusion of 9th evaluation period 11th Evaluation Period 1st day after 10th Evaluation Period through six months after conclusion of

10th evaluation period 12th Evaluation Period 1st day after 11th Evaluation Period through six months after conclusion of

11th evaluation period 13th Evaluation Period 1st day after 12th Evaluation Period through six months after conclusion of

12th evaluation period 14th Evaluation Period 1st day after 13th Evaluation Period through six months after conclusion of

13th evaluation period

1.4 Performance Evaluation

CDRL A0024, Material Delivery Incentive Fee Report, shall be submitted no later than 14 calendar days after the end of the evaluation period and shall contain:

A listing of all alterations delivered during the evaluation period for each availability The required delivery date for the alterations identified in Attachment J-11 (Alteration Material

Schedule) The actual delivery date for the alterations identified in Attachment J-11 The associated Start of Availability - 90 (A-90) date, kitted and available for shipping, to define material entitled for Special A-90 Incentive.

The proposal due dates for all proposals associated with the alterations delivered during the evaluation period The proposal submittal dates for all proposals associated with the alterations delivered during the evaluation period

CDRL A0024 shall provide the capability to sort the alteration list by ship availability. Within 14 calendar days after receipt of CDRL A0024, the Government will assess delivery of all PIO alteration material for adherence to the criteria in paragraphs 3.5 and 3.6 and will evaluate earned fee in accordance with the schedule in paragraph 5.2.

Delivery of PIO alteration material will be assessed semi-annually. Calculation of the period incentive will take place no later than thirty (30) calendar days after each evaluation period and the calculated fee will be identified in writing by the Supervisor of Shipbuilding, as applicable, to the Procuring Contracting Officer within forty-five

(45) calendar days after the calculation period. The Administrative Contracting Officer will issue a unilateral modification setting forth the specified performance incentive fee earned as soon as practicable, but no later than sixty (60) calendar days after the end date of the evaluation period.

2.0 SCOPE

The performance incentive fee pool will be identified under CLIN 0006 and paid under CLIN 0007. Performance incentive fee will be evaluated and earned against the Technical Objective metrics described in paragraph 5.2:

Fee earned is a product of the alteration material value and the fee percentage earned in accordance with the table in paragraph 5.2.

Performance incentive fee dollars for each evaluation period will be obligated in the written contract modification that specifically identifies the amounts earned for that period.

3.0 TERMINOLOGY

3.1 Performance Incentive Fee

The performance incentive fee is an additional amount identified as part of each awarded or exercised PIO CLIN order, which the Contractor may earn under the contract. It is determined per the performance evaluation criteria specified in Paragraph 5.2.

3.2 Evaluation Periods

The Government will evaluate the Contractor’s performance and calculate performance incentive fee earned in a series of performance incentive fee periods as specified in this plan. A contract modification will fund the performance incentive fee earned for each period after the determination is made and the Contractor is notified.

3.3 Performance Incentive Fee Pool

The performance incentive pool for each evaluation period shall be established at time of award and will not exceed four (4%) percent of the total value of all alteration material delivered during the evaluation period as a result of RFPs issued under this contract.

3.4 Contract Modifications

Contract modifications representing PIO material orders will be issued by the Administrative Contracting Officer with specific details on alteration material to be delivered. Attachment J-11 shall indicate the AMOD required date and the required delivery date for each alteration.

3.5 Early Delivery of PIO Alteration Material on Time

Early delivery of PIO alteration material by the Contractor is achieved if:

Early delivery of PIO alteration material to the location specified by the Government by A-90. Refer to Paragraph 1.4 above.

OR

The cognizant SUPSHIP/Contract Administration Office reports material delivery date by A-90.

OR

In the event that the Government is not ready to receive on site material delivery the cognizant SUPSHIP/Contract Administration Office reports material ready for shipping by A-90.

Material received in accordance with any of the above delivery requirements shall be considered early.

4.1 ADMINISTRATIVE CONTRACTING OFFICER RESPONSIBILITIES AND PROCEDURES

The ACO:

a. Issues bilateral modifications for PIO material orders.

b. Oversees Contractor performance, verifies the integrity of the performance metrics, and validates evidence that the requirements for performance incentive fee criteria have been met.

c. Reports performance metrics to the Contracting Officer’s Representative (COR) and PCO at the end of each evaluation period.

5.0 MATERIAL PERFORMANCE INCENTIVE CRITERIA AND CALCULATION

The following sections describe the performance incentive fee criteria.

The Contractor’s performance will be evaluated in accordance with the performance incentive fee criteria and percentages detailed in Paragraph 5.2 of this plan.

5.1 Description

The purpose of this performance incentive is to provide incentives for the Contractor to deliver PIO alteration material early as defined in 3.5.

The Contractor’s performance will be evaluated in accordance with the criteria detailed in Paragraph 5.2 of this plan

5.2 Performance Incentive – Delivery of PIO Alteration Material

Delivery of PIO alteration material will be assessed semi-annually. Within 14 calendar days after receipt of CDRL A0024, the Government will assess delivery of each alteration PIO material order contained within Contract Attachment J-11 for adherence to the criteria in paragraphs 3.5 and 3.6 and will evaluate material performance incentive fee earned in accordance with the schedule below:

Material Category Performance Incentive Fee Material delivered on site by A-90. (To be filled in at contract award with the proposed Performance Incentive Fee %)

Material not delivered on site by A-90. 0%