17R3002_Attachment_M_-_Award_Fee_Plan.docx

AWARD FEE PLAN

1.0 – Introduction

This award-fee plan is the basis for the Offshore Petroleum Discharge System (OPDS) program (Solicitation N32205-17-R-3002) evaluation of the Contractor’s performance and for presenting an assessment of that performance to the Award Fee Determining Official (AFDO). It describes specific criteria and procedures used to assess the Contractor’s performance and to determine the amount of award fee earned. Actual award-fee determinations and the methodology for determining award fee are unilateral decisions made solely at the discretion of the Government, although the determination is subject to the Disputes clause.

This plan will be used by the Military Sealift Command (MSC) Award Fee Review Board (AFRB) in the administration of award fee provisions under the contract resulting from solicitation N32205-17-R-3002. The award fee earned and payable will be determined by the AFDO based upon review of the Contractor’s performance against the criteria set forth in this plan. The AFDO may unilaterally change this plan prior to the beginning of an evaluation period. The Contractor will be notified of changes to the plan by the Contracting Officer (CO) in writing, before the start of the affected evaluation period. Changes to this plan that are applicable to a current evaluation period will be incorporated by mutual consent of both parties.

2.0 – Organization

The Award-Fee organization consists of the Award Fee Determining Official (AFDO) and an Award Fee Review Board which consists of the NMAF Project Officer (Chairperson), the Contracting Officer, Contracting Officer Representative (COR), a Recorder; and the Performance Monitors. The AFDO for this contract will be the Prepositioning (PM3) Program Manager. The Government reserves the right to make unilateral substitutions for award fee organization members.

3.0 – Responsibilities

a. Award Fee Determining Official. The AFDO approves the award-fee plan and any significant changes. The AFDO reviews the recommendation(s) of the AFRB, considers all pertinent data, and determines the earned award-fee amount for each evaluation period.

b. Award Fee Review Board. AFRB members review the Performance Monitors’ evaluation of the Contractor’s performance, consider all information from pertinent sources, and arrive at an earned award-fee recommendation to be presented to the AFDO. The AFRB may also recommend changes to this plan.

c. Award Fee Review Board Chairperson. The AFRB Chairperson is responsible for the overall functioning of the AFRB in the performance of its members. The Chairperson is responsible for:

(1) scheduling all meetings of the AFRB;

(2) conducting the briefing of the AFDO with regard to the recommendations of the AFRB.

d. AFRB Recorder. The AFRB recorder is responsible for coordinating the administrative actions required by the Performance Monitors, the AFRB, and the AFDO, including:

(l) maintaining records of all meetings in developing the award fee evaluations (a copy of which will be provided to the CO for retention in the contract file);

(2) receipt, processing and distribution of evaluation reports from all required sources;

(3) scheduling and assisting with internal evaluation milestones, such as briefings; and

(4) accomplishing other actions required to ensure the smooth operation of the AFRB.

e. Contracting Officer (CO). The CO is the liaison between Contractor and Government personnel on all issues. The CO is responsible for forwarding the AFDO decision to the Contractor and maintaining the contract file.

f. Contracting Officer’s Representative (COR). The COR collects and evaluates the records provided by the Performance Monitors. If there is a difference of opinion in a given evaluation area, the COR will adjudicate the difference to establish one rating for the evaluation area. The COR may perform the duties of a Performance Monitor for his/her area of expertise.

g. Performance Monitors. Performance Monitors maintain written records of the Contractor’s performance in their assigned evaluation area(s) so that a fair and accurate evaluation is obtained and prepare end-of-period evaluation reports as directed by the AFRB.

4.0 -- Award-Fee Processes

a. Available Award-Fee Amount. The available award fee for each evaluation period is $175,000 or less in accordance with this plan. The award fee evaluation periods for the OPDS will be from 01 August through 31 July of each contract year. The Contractor has the potential of earning a maximum award fee of $175,000 per evaluation period, for Years One through Five. The award fee earned will be paid based on the Contractor’s performance during each evaluation period.

b. Evaluation Criteria. If the CO does not give specific notice in writing 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 subsequent award-fee evaluation period. Any changes to evaluation criteria will be made by issuing a unilateral modification to the Contractor.

c. End-of-Period Evaluations. The AFRB Recorder notifies each AFRB member and performance monitor (30) calendar days before the end of the evaluation period. The Contractor shall submit a self –evaluation of its performance for that period. The self-evaluation shall be a written assessment (not to exceed 20 pages) submitted to the CO. The Contractor may also give a presentation to the AFRB. The Contractor must submit the self-assessment to the CO within (30) calendar days of the closure of the evaluation period. If the Contractor desires to make a presentation, he/she should notify the CO within (10) days prior to the end of the evaluation period. The Contractor must submit an electronic copy of the presentation slides no later than (5) working days prior to the presentation date.

Performance Monitors submit their evaluation reports to the AFRB Recorder (30) calendar days after the Contractor submits the self-evaluation or gives a presentation, whichever is later. The AFRB Recorder consolidates a summary evaluation and provides it to the AFRB. The CO with the recommendation of the AFRB and the approval of the AFDO may also send a copy of the summary evaluation to the Contractor in order to provide the Contractor an opportunity to review and comment on the evaluation. The summary evaluation provided to the Contractor should not include an actual rating or grade. The summary evaluation may be in a narrative or briefing format. AFRB evaluates the findings; Contractor’s self-assessment, and other pertinent information to develop a recommended earned award-fee amount for the AFDO.

The Chairperson briefs the AFDO on the AFRB’s recommendations of the earned award-fee amount and any significant changes to the award-fee plan. The briefing includes discussion of the Contractor’s related strengths and weaknesses. After the AFDO decides an overall rating and the award-fee amount for the evaluation period, an AFDO determination letter is sent to the Contractor via cover letter from the CO. The determination letter should be clear and concise, informing the Contractor of the earned-award-fee amount and the major strengths and weaknesses of the Contractor for that award-fee evaluation period. The CO shall issue within (15) calendar days after the AFDO’s determination, a unilateral contract modification to authorize payment of the earned-award-fee amount. The CO shall de-commit or de-obligate, as appropriate, all unearned award fee for that evaluation period unless a rollover has been authorized.

5.0 -- Award-Fee Plan Change Procedure

All significant changes are approved by the AFDO. The AFRB Chairperson approves other changes. Examples of significant changes include changing evaluation criteria, adjusting weights to redirect Contractor’s emphasis to areas needing improvement, and revising the distribution of the award-fee dollars. The Contractor may recommend changes to the CO no later than (60) days prior to the beginning of the new evaluation period. After approval, the CO shall notify the Contractor in writing of any change(s). Unilateral changes may be made to the award-fee plan if the Contractor is provided written notification by the contracting officer (30) days before the start of the upcoming evaluation period. Changes affecting the current evaluation period must be by mutual agreement of both parties.

6.0 -- Contract Termination

If the contract is terminated for the convenience of the Government after the start of an award-fee evaluation period, the award fee deemed earned for that period shall be determined by the AFDO using the normal award-fee evaluation process. After termination for convenience, the remaining award-fee amounts allocated to all subsequent award-fee evaluation periods cannot be earned by the Contractor and, therefore, shall not be paid.

7.0 – Evaluation Categories

The award fee rating will be based upon a subjective evaluation by the Government of the effectiveness and quality of the Contractor’s performance in the following categories and subcategories. All categories are equally weighted. If the Government determines that the Contractor’s performance in any one of the evaluation categories or subcategories is Unsatisfactory, the Contractor shall receive NO award fee for that evaluation period. The award fee criteria will be judged in light of the nature of the contract requirements and any other factors considered relevant to the determination.

A - Quality of Service

B - Schedule

C - Cost Control of Reimbursable Items

D - Business Relations

E - Management of Key Personnel

F - Other Areas – OPERATIONS

F - Other Areas - ENGINEERING, MAINTENANCE & REPAIR

8.0—Award Fee Pool Allocation

Award fee may be earned in accordance with the following:

Each category will receive an overall adjectival rating based on an average of the numerical value of the ratings received for the subcategories within each category. Each adjectival rating assigned to one of the subcategories above will be assigned a numerical value as follows:

UNSATISFACTORY = 0

SATISFACTORY = 1

GOOD = 2

VERY GOOD = 3

EXCEPTIONAL = 4

If any subcategory receives a rating of Unsatisfactory then the total award fee will be $0.00.

The amount of award fee earned will be determined at the category level using the category ratings and allocation ranges below. Each category may receive up to 16.6669% of the total available award fee ($29,167). The specific amount of award fee earned in each category will be solely within the discretion of the Award Fee Determining Official.

*The Government reserves the right to make an award fee determination outside of the percentage range specified above.

Attachment M – Award Fee Plan