SMIT Attch J-3 SMIT Award Fee Plan_Final.docx

NAVAL ENTERPRISE NETWORK PROGRAM

UNITED STATES NAVY

Solicitation: N00039-18-R-0005 Attachment J-3, Award Fee Plan Version: Final Date: 18 October 2018

Program Executive Office Enterprise Information Systems Program Manager, Naval Enterprise Networks 1325 10th Street, SE, Suite 301 Washington, DC 20374

TABLE OF CONTENTS

Table of Tables

1. INTRODUCTION

In addition to any profit to be paid under the provisions of the Service Management, Integration, and Transport (SMIT) contract, the Contractor may earn an award fee up to an amount set forth in the contract. This document outlines the strategy, responsibilities, procedures, and criteria for award fee determinations. The objective of the Award Fee Plan is to incentivize the Contractor’s performance.

1.1 Basis for Award Fee

The Government will ensure the Contractor is given the opportunity to understand the basis for the award amount. The award fee basis is a combination of subjective criteria, objective criteria, and performance-based metrics. The allocated fee set forth shall not be increased except as a result of an increase in the scope of effort required under the contract. There is no rollover of any unearned fees, meaning that any award fee unearned in any period shall not be added to the amount of award fee available in any subsequent period. The Contractor shall be paid the determined amount of the award fee upon submittal of a proper invoice[footnoteRef:1]. There is no invoicing of award fee prior to a final determination from the Fee Determining Official (FDO) and task order execution by the Procuring Contracting Officer (PCO). [1: Award Fee is not subject to the termination clauses of this contract. In other words, costs associated with the Award Fee process are not reimbursable under this contract.]

1.2 Determination of Award Fee

Award Fee determination ranges from 0 to 100% and will be based on the Government’s assessment of the Contractor’s attainment of the objective and subjective performance measures outlined in this plan. The amount of the total fee to be paid to the Contractor and the methodology for determining the total fee are unilateral decisions made solely at the discretion of the Government (FAR 16.401(e)(2)). The Government will assure fairness of evaluation as well as prompt and consistent feedback to Contractor questions with supporting examples. The Contractor will not be held responsible for failure to achieve performance for reasons directly attributable to the Government or any outside entity (excluding those that have established cooperative agreement with the Contractor). Potential disagreements in this area are not subject to the dispute provision of this contract. Performance evaluation will also serve to advise the Contractor of trends indicating strengths and/or weaknesses that might result in an increase or decrease of award fee earned during evaluation periods.

1.3 Award Fee Plan Changes Procedures

The Award Fee Plan and award fee criteria may be modified to place emphasis on those areas the Government deems most critical. Prior to each award fee period, a review will be conducted by the Program Office and PCO to ensure the objectives remain relevant and are written in such a way to incentivize performance. Unilateral changes to the Award Fee Plan evaluation factors and their weightings can be enacted if the PCO provides the contractor written notification fifteen (15) days or more in advance of the start of the targeted evaluation period. Bilateral changes will occur when the Government desires a change to the Award Fee Plan and there are less than fifteen (15) days remaining before the start of the targeted evaluation period.

2. ORGANIZATION AND RESPONSIBILITIES

The Award Fee (AF) Board provides an objective and subjective assessment of the Contractor’s performance against established criteria

2.1 Fee Determining Official (FDO)

The FDO shall make the final award fee determination based upon the performance evaluation recommendations presented by AF Board. The FDO will:

· Approve the Award Fee Plan and any changes to the Award Fee Plan, award fee criteria, or methodology of determining award fee amounts.

· Review the recommendations of the AF Board, consider all pertinent data, and determine the amount of award fee earned for each period.

· Notify the Contractor, in writing, of the amount of award fee earned during the period and provide a summary of the Contractor’s strengths, areas for improvement, and future expectations.

· Authorize the PCO to make payment.

· If FDO deviates from AF Board recommendations, a Memorandum for the Record by the FDO will be included in the file to document the decision.

2.2 Chairperson

In addition to being a participatory member of the AFB, the Chairperson will:

· Collect all performance assessments from the Government Award Fee Board Members and develop a single, coherent Evaluation Report, to include the recommended award fee amount.

· Provide the Evaluation Report to the AFB members for review and comment.

· Schedule and Chair the AFB meeting. Provide the final AFB Evaluation Report to the FDO for approval.

· Prior to each award fee period, facilitate and document recommended changes to the Award Fee Plan and present the revised plan to the FDO for approval

2.3 Board Members

Award Fee Board members will:

· Be familiar with the terms and conditions of the contract, Service Level Requirements, Award Fee Plan, and the SMIT Quality Assurance Surveillance Plan (QASP).

· Conduct assessments according to contract requirements and the Award Fee Plan, ensuring evaluations are fair and accurate.

· Understand performance requirements and monitor Contractor performance levels necessary to achieve each level of performance as defined in the Award Fee Plan.

· When applicable, collect and include performance evaluation inputs from stakeholders and team members, to include recommended award fee percentages.

· Maintain written records of Contractor’s performance.

· Provide a report in the evaluation areas that detail specific examples of where the Contractor’s strengths and the need to make improvement.

· Recommend changes to the Award Fee Plan.

2.4 Award Fee Recorder

The Award Fee Recorder will coordinate the administrative actions necessary to manage the AF Board activities, including:

· Manage all activities associated with the AF Board process, including scheduling and assisting with internal evaluation milestones.

· Notify AF Board members of when and what required reports are due.

· Receive, process, and distribute evaluation reports from all required sources.

· Consolidate assessments and recommendations for presentation to the AF Board for evaluation periods.

· Document and maintain AF Board documentation and activities in official files.

· Record and distribute minutes of the AF Board meetings (a copy of which will be provided to the PCO for retention in the contract files).

2.5 Procuring Contracting Officer (PCO)

The PCO is the liaison between Contractor and Government personnel on all issues. The PCO will:

· Act as the liaison between the Contractor and Government personnel.

· Notify the Contractor of the initial and final performance findings. Prepare FDO Award Fee determination letter along with a description of Contractor’s performance, strengths, weaknesses, improvement areas, and expectations for future performance.

· Forward FDO award fee determination to the Contractor.

· As directed by the FDO, execute modifications to the contract to incorporate changes to the Award Fee Plan.

· Maintain the contract file.

3. AWARD FEE EVALUATION PROCESS

The Contractor will be subject to a Fixed Price/Award Fee (FPAF) process to incentivize Contractor’s performance. The Government will provide specific performance areas in the Award Fee Plan to evaluate the Contractor’s performance during each evaluation period with the specific intent of incentivizing performance that achieves target requirements. Criteria may be modified each award fee period.

No later than thirty-five (35) business days after the award fee period concludes, the Government will conduct an Award Fee Board to assess the Contractor’s performance. Inputs such as the Contractor’s Self-Assessment, Service Level Manager performance assessments and other supporting justification will be considered during the AF Board.

3.1 Award Fee Board Evaluation Process

The AF Board evaluation process will proceed as follows:

· Prior to the end of the evaluation period the AF Board Chairperson and Recorder will establish a schedule for each required evaluation process step and notify the AF Board members of the upcoming Award Fee process requirements.

· AF Board members will submit quarterly performance assessments for their respective areas of emphasis to the AF Board Chairperson and Recorder. The content of each performance assessment shall explicitly address and document contractor performance at, above, and/or below customer expectation and target performance[footnoteRef:2]. [2: Assessment information that details Contractor performance/accomplishments that are below target performance shall be documented in the annual Contractor Performance Assessment and Reporting System (CPARS) process.]

· Within ten (10) business days after the end of an evaluation period, the Contractor shall furnish to the PCO a self-assessment for each performance area under review, including any information that may be reasonably required to assist the AF Board in evaluating the Contractor’s performance for the evaluation period. This self-assessment may not exceed 25 pages in length. Within ten (10) business days after the end of the evaluation period, the Performance Evaluation Board (PEB) members will provide their assessment of Contractor performance.

· The AF Board evaluation will occur within ten (10) business days after due date for the Contractor’s self-assessment and PEB assessments. The AF Board may consider additional documentation. Performance assessment results and supporting rationale will be reviewed, integrated, and the AF Board will arrive at consensus agreement on the performance rating. The AF Board Recorder will document AF Board discussions and deliberations in the meeting minutes. These minutes will provide a record of the events leading to the FDO decision. The minutes and briefings comprise the official file to substantiate the award fee decision.

3.2 Award Fee Board Findings

Determinations by the FDO with respect to the amount of the total fee to be paid to the Contractor are unilateral decisions made solely at the discretion of the Government (FAR 16.401 (e)(2)).

· Not more than ten (10) business days after the AF Board meeting, the rating will be compiled by the AF Board Chairperson who will then develop and forward the overall award fee recommendation to the FDO. The AF Board’s recommendation to the FDO will include supporting rationale, dissenting opinions, and any significant changes recommended to the Award Fee Plan.

· The FDO, via the PCO, will notify the Contractor in writing of the proposed award fee, and provide a summary evaluation of the Contractor’s performance. The Contractor may provide a written response or acceptance to the PCO within five (5) business days of proposed final determination letter. The FDO will consider these comments when establishing the award fee earned. The FDO will then provide the PCO a final performance evaluation and determination of the award fee earned for that period within five (5) business days after receipt of the Contractor’s written comments.

· The PCO will issue a unilateral task order / contract modification for the payment of the award fee to Contractor within fifteen (15) business days after receiving authorization from the FDO. The goal is to have the award fee payment to Contractor sixty (60) business days from the end of the award fee period.

4. AVAILABLE AWARD FEE

Subject to the availability of funds, the Contractor may earn a total award fee amount of up to $20M during each year of performance.

5. ADJECTIVE RATING CRITERIA

The adjectival ratings associated with the respective award fee percentage and evaluation criteria are provided in Table 1.

Table 1: Adjective Rating Descriptions Award Fee Adjectival Rating

6. EVALUATION FACTORS AND EVALUATION PERIODS

The SMIT award fee evaluation criteria will be subject to those actions considered to be within the control of the Contractor. The Government will evaluate the Contractor on multiple factors divided into three separate categories; Transition Management, Performance Management, and Program Management. At the beginning of each award fee period, the Government will determine the weighting of each evaluation category shown in Table 2. Each evaluation period is six months long.

Table 2: Evaluation Factor Weights AF Period

Evaluation Factors

6.1 Transition Management

The Government will assess the Contractor’s performance in this category based on overall effectiveness in maintaining the continuity of services and the delivery of uninterrupted services during transition from the incumbent Contractor. The Contractor’s transition management during each evaluation period will be evaluated in the following areas: Continuity of Operations, Cooperation and Integration between incumbent and successor Contractor, and Transition Services.

6.1.1 Continuity of Operations

The Contractor will ensure continuity of services during the transfer of service delivery responsibilities. The Contractor will be expected to sustain operations and deliver uninterrupted services for the portion of SMIT services and sites for which they have assumed full operational responsibility.

6.1.2 Cooperation and Integration between incumbent and successor Contractor The Contractor’s ability to team and standardize processes, tools, and system interfaces for the purposes of timely information exchanges and seamless integration will be evaluated. The Contractor’s level of cooperation and integration of people and processes will be evaluated in the areas of assistance, engagement, and accountability.

6.1.3 Transition Services

The Contractor’s Transition Services include the complete transfer of responsibility of services from the incumbent to successor contractor. The Government will monitor progress against the Contractor’s submission of CDRL A001 (NMCI Transition Plan).

6.2 Performance Management

The Government will assess the Contractor’s performance in this category based on the overall efficiency and effectiveness of the provisioning of services as stated in the contract. The Government will leverage objective criteria pertaining to those activities related to the following areas:

· Service Level Requirements

· Performance Level Requirements

· Information Security

· Network Operations

· Network Modernization

· Process Improvement

· Tools and Capability Integration

· Productivity Services

· User Support

· Transport Services

6.3 Program Management

The Government will assess the Contractor’s performance in this category based on the overall effectiveness of the following areas:

· Governance Activities

· Seams Management

· Risk Management

· Cost Management

· Schedule Management

· Innovation

· Integration Activities

· Project Management Activities

· Program Security image1.png