Attachment 17 - Performance Incentive.docx

Attachment 17 – Performance Incentives The Government is proposing a Post Transition 24 month Base Period followed by a maximum of 92 months of options, for a total duration not to exceed 120 months. If the Contractor performs at a high level, the SEC may award the Contractor either a two (2) year or three (3) year option period, based on the Contractors performance against the below Performance Criteria. The intent of the Performance Incentives is to reward strong contractor performance with longer option period terms.

Measurement Period For purposes of assessing the Performance Criteria below, a Measurement Period is as follows:

The first Measurement Period will begin after the completion of Base Period Year 1 (i.e., after completion of the Transition Period plus one year of performance), and will end three months prior to the end of Base Period Year 2.

Thereafter, the Measurement Period for each subsequent option period will begin immediately upon the commencement of the option period, and will end three months prior to the end of that option period.

Performance Criteria If the Contractor satisfies the below criteria for a given Measurement Period it will be considered for a two (2) year option in the subsequent Option Period:

1. Service Level Achievement

a. The Contractor must meet or exceed the Target Service Levels for all designated Critical Performance Indicators (CPIs) during the Measurement Period. Target Service Levels and CPIs have been defined in Attachment 9 – Service Level Agreements.

b. The Contractor shall commit to increasing the target and minimum Service Levels for the next Option Period.

2. Cost Performance

a. The Contractor must achieve a cost reduction, as measured by Annual Cost per User, of at least 5% during the Measurement Period.

i. Cost Performance Calculation at conclusion of Base Period:

For purposes of measuring Cost Performance at the conclusion of the two (2) year Base Period, the first Measurement Period (beginning immediately after the completion of Base Period Year 1 and ending 3 month prior to the end of Base Period Year 2), will be compared to the prior 12 months of performance immediately preceding the first Measurement Period (i.e., the first year of the Base Period).

ii. Cost Performance Calculation at conclusion of Option Period:

For purposes of measuring the Cost Performance at the conclusion of any Option Period, the Measurement Period (beginning immediately upon the commencement of the option period and ending three months prior to the end of that option period),will be compared to either the Full Base Period or Full Option Period immediately preceding the Measurement Period.

b. Annual Cost per User will be determine as follows:

i. Annual Cost per User of Measurement Period = Sum total of all invoices submitted by the Contractor for ISS services under this contract during the Measurement Period / Average number of SEC Users during the Measurement Period

ii. Annual Cost per User of preceding Base Period or Option Period = Sum total of all invoices submitted by the Contractor for ISS services under this contract during the full Base Period or full Option Period immediately prior to the current Measurement Period / Average number of SEC Users during the preceding Base Period or Option Period

iii. Average number of SEC Users is determined by: Number of SEC Users on first day of the period + Number of SEC Users on last day of the period / 2

iv. Cost Reduction = Annual Cost per User of preceding Base Period or Option Period – Annual Cost per User of Measurement Period / Annual Cost per User of preceding Base Period or Option Period

c. NOTE: The Cost Performance criteria will be waived for any work that the Contractor successfully transitions to a Fixed Price model (see Attachment 20 – Fixed Price Conversion Timeline) if implemented during the current Measurement Period.

i. Thereafter, in any following Measurement Period, all work transitioned to a Fixed Price Model will not be subject to meet the Cost Performance criteria.

3. SEC Satisfaction

a. The Contractor must achieve a minimum score of at least 4.0 out of 5 points on the SEC Satisfaction Survey, based on performance during the Measurement Period.

b. The survey user population will be the OIT Leadership team at the Assistant Director level and above.

c. The survey questions are outlined in this attachment within the SEC Satisfaction Survey section.

If the Contractor satisfies the below criteria in a given Measurement Period, it will be considered for a three (3) year option in the subsequent Option Period:

1. Service Level Achievement

a. The Contractor must exceed the Target Service Levels for all designated Critical Performance Indicators (CPIs) during the Measurement Period.

b. The Contractor shall commit to increasing target and minimum Service Levels for the next Option Period.

2. Cost Performance

a. The Contractor must achieve a cost reduction, as measured by Annual Cost per User, of at least 10% during the Measurement Period.

i. Cost Performance Calculation at conclusion of Base Period:

1. For purposes of measuring the Cost Performance at the conclusion of the two (2) year Base Period, the first Measurement Period (beginning immediately after the completion of Base Period Year 1 and ending 3 month prior to the end of Base Period Year 2), will be compared to the prior 12 months of performance immediately preceding the first Measurement Period (i.e., the first year of the Base Period).

ii. Cost Performance Calculation at conclusion of Option Period:

1. For purposes of measuring the Cost Performance at the conclusion of any Option Period, the Measurement Period (beginning immediately upon the commencement of the option period and ending three months prior to the end of that option period),will be compared to either the Full Base Period or Full Option Period immediately preceding the Measurement Period.

b. Annual Cost per User will be determine as follows:

i. Annual Cost per User of Measurement Period = Sum total of all invoices submitted by the Contractor for ISS services under this contract during the Measurement Period / Average number of SEC Users during the Measurement Period

ii. Annual Cost per User of preceding Base Period or Option Period = Sum total of all invoices submitted by the Contractor for ISS services under this contract during the full Base Period or full Option Period immediately prior to the current Measurement Period / Average number of SEC Users during the preceding Base Period or Option Period

iii. Average number of SEC Users is determined by: Number of SEC Users on first day of the period + Number of SEC Users on last day of the period / 2

iv. Cost Reduction = Annual Cost per User of preceding Base Period or Option Period – Annual Cost per User of Measurement Period / Annual Cost per User of preceding Base Period or Option Period

c. NOTE: The Cost Performance criteria will be waived for any work that the Contractor successfully transitions to a Fixed Price model (see Attachment 20 – Fixed Price Conversion Timeline) if implemented during the current Measurement Period.

i. Thereafter, in any following Measurement Period, all work transitioned to a Fixed Price Model will not be subject to meet the Cost Performance criteria.

3. SEC Satisfaction

d. The Contractor must achieve a score of at least 4.5 out of 5 points on the SEC Satisfaction Survey, based on performance during the Measurement Period.

a. The survey user population will be the OIT Leadership team at the Assistant Director level and above.

b. The survey questions are outlined in this attachment within the SEC Satisfaction Survey section.

Evaluation Period The SEC will utilize the final 3 months of the Base Period and each Option Period to evaluate the performance of the Contractor during that respective Base Period or Option Period.

SEC Satisfaction Survey The Customer Satisfaction Survey will be conducted through a survey of the OIT Leadership team at the Assistant Director level and above. The Assistant Directors will receive feedback from their relevant Branch Chiefs and others to complete the survey. The survey scoring will be on a scale of 1 to 5 with the following classification:

1 = Poor 2 = Below Average 3 = Average 4 = Above Average 5 = Exceptional

The questions for the survey are outlined below:

1. How would you rate the effectiveness of the OIT infrastructure support contractor in meeting requirements and needs of the Business Unit, Regional Office, and / or Staff?

2. How would you rate the overall responsiveness of the OIT infrastructure support contractor in addressing issues and / or requests?

3. How would you rate the professionalism of the OIT infrastructure support contract staff?

4. How would you rate the OIT infrastructure support contractor in being knowledgeable of SEC processes, procedures and service needs?

5. How would you rate the OIT infrastructure support contractor's commitment in communicating planned and unplanned changes in technology?

6. How would you rate the ability of the OIT infrastructure support contractor in bringing innovative ideas to the SEC on a regular basis that are focused on improving the quality of delivery, customer satisfaction and service availability and reducing costs?

7. How would you rate the effectiveness of the OIT infrastructure support contractor at ensuring that SEC employees and contractors have the right resources, at the appropriate skill levels, at the right time, to perform their jobs as efficiently and effectively as possible, with minimal disruption?

8. How would you rate the effectiveness of the OIT infrastructure support contractor to bring on board ISS contractor resources in a timely manner?

9. How would you rate the OIT infrastructure support contractor's flexibility in delivering proposals for new services and subsequent change requests?

10. What is your overall level of satisfaction with the OIT infrastructure support contractor during the evaluation period?

The SEC reserves the right to modify the survey questions at its sole discretion.

Limit on Options and Total Duration of Contract Performance Options will be awarded at the SEC’s discretion and in accordance with the requirements of FAR Subpart 17.2, and all Option years are contingent on the availability of funds. Notwithstanding the above performance criteria and multi-year options outlined, in no event will the total duration of contract performance, including the Transition Period, exceed ten (10) years. Any option awarded in the final available option period will be shortened if necessary to ensure the total duration of contract performance does not exceed ten (10) years.

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