Section J Attachment 8 - Section H Clause Objective Performance Incentive.pdf

Solicitation: FA8630-20-R-4000 Attachment 8, Section H

18 March 2021

OTHER CONTRACT CLAUSES IN FULL TEXT

AFLCMC/WFK H102 PROS VI OBJECTIVE PERFORMANCE INCENTIVE (OPI) (MARCH 2021)

The contractor may earn up to $16,200,000 over the life of the contract if all Option Years are exercised.

Each OPI will be evaluated at the conclusion of each timeframe listed in the OPI Schedule Matrix (schedule). At Contract Award the schedule shall incorporate actual dates, failure to deliver Full Operational Capability shall not cause schedule modification. Contractor performance shall be continually monitored.

1. OPI 1- The Contract Competition Index (CCI) evaluates the top 100 vendors that exceed $25,000.00 in competitively awarded contracts during the semester. The CCI is a measure of market concentration and market competitiveness. It is calculated by squaring the market share of each of the top 100 vendors competing in the market, competitively awarded contract value determines the market, and then summing the resulting numbers. Unconstrained it can range from close to zero to 10,000 and with the top 100 vendors constraint it can range from 100 to 10,000. This OPI becomes available when 100 vendors are active with at least $25,000.00 competitively awarded per vendor in the evaluated semester.

A lower CCI indicates increased competition and a higher CCI indicates decreased competition.

The CCI formula is:

CCI= s12+s22+s32+…sn2

Where:

Sn = the contract competition market share percentage of a vendor firm n expressed as a whole number, not a decimal.

2. OPI 2 – Increasing numbers of requisitions terminating in Beyond Economical Repair (BER) or

Beyond Physical Repair (BPR) results in lower customer satisfaction, as the customer pays for a service and has perceived limited value in return. OPI 2 applies an incentive to reward low occurrence of BER and BPR and in the event of BER and BPR, more value is provided to the customer by incentivizing an alternative termination to the BER or BPR requisition through the delivery of Market Research Report, Failure Report, and Rough Order Magnitude that provides the customer a new supply requisition. This OPI becomes available when 1 Requisition Terminates as BER or BPR in the evaluated semester. The formula will utilize totals for the life of the contract.

The BER or BPR Conversion Rate formula is:

BER or BPR Conversion Rate = CRTB / RTB

CRTB = Requisition Terminated BER or BPR & Converted to New Requisition Awarded RTB = Requisition Terminated BER or BPR

3. OPI 3 – The Cancellation Rate (CR) evaluates total requisitions cancelled out of the total requisitions during the semester.

The Cancellation Rate formula is:

CR = TRC/TR

TRC = Total Requisitions Cancelled TR = Total Requisitions

Solicitation: FA8630-20-R-4000 Attachment 8, Section H

18 March 2021

Objective Performance Incentive (OPI) Payment The OPI is not subject to the allowable cost and payment or termination clauses of this contract.

Contractor may bill for the OPI immediately upon receipt of the Contracting Officer's (CO) authorization for payment of the earned OPI amount. This authorization will be in the form of a task order issued after the Program Management Office (PMO) has determined the amount the contractor has earned. PMO will make the final decision of the OPI amount paid based on contractor performance during the OPI evaluation period and IAW the OPI Matrix provided below for the Semi-Annual Incentive for OPI-1, OPI-2, and OPI-3. OPI Incentive Range thresholds are provided below and are not to be combined within the same OPI.

Semi-Annual OPI Matrix

PERFORMANCE

CRITERIA

PERFORMANCE

OBJECTIVE

SURVEILLANCE INCENTIVE RANGE

OPI-1 Contract Competition Index top 100 vendors by awarded values

X = s12+s22+s32+…sn2 100% surveillance reported through SAMIS, CTS, and supported by sampling

= $450K = $300K

750 = $200K

OPI-2 Beyond Economical Repair and Beyond Physical Repair

X = CRTB / RTB 100% surveillance reported through SAMIS, CTS, and supported by sampling

X 50% = $180K 30% = $120K

OPI-3 Cancellation rate due to inability to utilize qualified source

X = TRC/TR 100% surveillance reported through SAMIS, CTS, and supported by sampling

5% = $180K 8% = $120K 10% = $ 80K