Draft__RETS_Incentive_Clause.pdf

DRAFT

This is draft incentive fee clause information (subject to change). The final clause will be articulated in a resultant clause in the RFP.

PROCUREMENT SENSITIVE INFORMATION – SEE FAR 2.101 AND FAR 3.104

1.0 RETS INCENTIVE FEE

1.1 Contract Cost and Technical Performance Incentives are established for (STS). As defined in the RETS PWS, paragraph x.x, the following RETS services are characterized as STS: RTS Instrumentation maintenance, RTS Comms/IT services, and RTS space operations.

1.2 RETS STS Labor CLIN TBD is established for RTS Standard Technical Services (STS) for work as set forth in the Performance Work Statement (PWS) paragraph x.x, dated TBD, incorporated at contract Section J as Cost-Plus-Incentive Fee (CPIF) contract type:

TARGET COST TBD

TARGET FEE TBD

TOTAL TARGET COST + FEE TBD

MINIMUM FEE $0.00

MAXIMUM FEE TBD

SHARE RATIO ABOVE TARGET (Note 1) 50/50 SHARE RATIO BELOW TARGET (Note 1) 60/40

1.3 The incentive fee for CLIN TBD is comprised of fifty (50) percent of the total contract incentive fee shall be available for technical performance and the remaining fifty (50) percent of the total contract incentive fee shall be available for cost performance. The maximum total contract incentive fee (technical and cost performance) shall not exceed fifteen (15) percent of target cost.

Technical Incentive Fee 50% Cost Incentive Fee 50% Maximum Incentive Fee 100%

1.4 The total incentive fee available is calculated based on target cost that are funded in the annual period; therefore, the contractor is not entitled to any fee associated with target costs that have not been funded. The range of incentive fee available to contractor, for a given fiscal/calendar year (hereafter known as annual fee pool), is equal to the mathematical difference between annual maximum fee and annual minimum fee.

The total amount of incentive fee earned by contractor is determined from the results of technical and cost performance as measured against established criteria discussed in paragraph x and x. The maximum total contract incentive fee paid (cost and technical) shall not exceed TBD% (maximum fee) of funded target cost. Unearned incentive fees do not “roll” from one period to the next.

1.5 The Government will separate the incentive fee periods into annual intervals. If any period is for less or more than 12 months, the Government will notify the contractor prior to the beginning of the annual interval.

1.6 TECHNICAL INCENTIVE FEE

1.6.1 Table 1 identifies the RETS contract performance incentive fee criteria technical performance parameters, minimum level of performance that is acceptable, par and maximum levels of performance, and the available annual fee pool (as defined in 1.4).

Performance

Area

PWS

Item

Technical Parameter

Performance Level (Metrics)

Weight Minimal (Satisfies Mission)

Target (Target Level)

Maximum (Desirable

Level)

Sensor Maintenance

3.2.2 3.2.2.

STS: Maintain operational availability for all

RTS

instrumentation systems (sensors)

95% 98% 100% 15%

Sensor Maintenance

3.2.2 3.2.2.

STS: Maintain operational status of mandatory RTS Sensors during designated mission execution window

98% 99% 100% 15%

RTS Network Maintenance

3.2.3.

STS: RTS System network availability

95% 99% 99.97% 15%

Calibration 3.2.4.

4.1

STS: Performance of RTS calibration to minimize TMDE delinquency

2% 2% 1% 5%

Technical Performance Incentives 50%

1.6.2 The Government will round metric calculations to the next whole number from .5 up (for example: 94.50 will become 95 and 94.49 will become 94), for Sensor Maintenance metrics; the RTS Network Maintenance technical metric will round similarly, but to two decimal places; and the Calibration TMDE delinquency will round similarly, but to one decimal place..

1.6.3 Table 2 identifies the calculation and reporting methods used to determine the contractor’s achieved performance levels.

Technical Parameter

Achieved Technical Performance – Metric Calculation and Reporting

Sensor Maintenance

STS Maintain operational availability for all RTS instrumentation systems (sensors)

What: Sensor and network Reliability/Availability Report Deliverable

(CDRL A024)

How: Inspection of Deliverable Frequency: Semi-annual CDRL delivery/Annual assessment Who: TM/COR

Sensor Maintenance

STS: Maintain operational status of mandatory RTS Sensors during designated mission execution window

RTS Network Maintenance

STS: RTS System network availability

Achieved Technical Performance – Metric Calculation and Reporting

Calibration STS: Performance of RTS calibration to minimize TMDE delinquency

What: Inspection of RTS Test measurement and diagnostic equipment requiring calibration and TMDE delinquency report (CDRL A039) How: Onsite inspection and inspection of deliverable Who: TM/COR

1.6.4 Contractor annual performance incentive fee earned will be calculated annually as a result of annual technical performance metrics achieved by the contractor measured against desired performance levels (minimum, target and maximum) using linear equations to determine pro-rata share of annual technical fee earned. RTS Network Maintenance network availability metric will exclude delays that are not within the contractor’s control (Government caused network outages and acts of God). Exclusion of delays must have documented concurrence by the Government COR or Contracting Officer. Table 3 identifies the method used to calculate annual fee earned.

Annual Achieved Metric

Method to calculate Annual Fee Earned

Sensor Maintenance - Operational Availability TBD Incentive fee increases linearly to maximum fee with increases in metrics from par to maximum performance;

decreases linearly to minimum fee with decreases in metrics from par to minimal performance; there is no technical incentive fee for performance below minimal (equations and annual fee earned TBD). Separate calculations are made for each technical parameter.

Sensor Maintenance – Operational Status TBD

RTS Network Maintenance - Network Availability

TBD

Calibration – TMDE Deficiency TBD

Incentive fee increases linearly to maximum fee with decreases in metrics from par to maximum performance;

decreases linearly to minimum fee for increases in delinquency metrics from par to minimal performance; there is no technical incentive fee for delinquency rates higher than minimal (equation and annual fee earned TBD)

1.7 COST INCENTIVE FEE

1.7.1 When allowable costs incurred are equal to target cost that have been funded in the annual period: the contractor shall earn an annual cost incentive fee calculated as available annual target fee (50% available for cost incentive), provided that minimum or better performance metrics are achieved by the contractor during the annual period.

Minimum performance metrics are defined in paragraph 1.6.1.

1.7.2 When allowable costs incurred are less than target cost (underrun) that have been funded in the annual period: the contractor shall earn an annual cost incentive fee, calculated as available annual target fee (50% available for cost incentive), increased by $.40 (share ratio is 60/40) for every $1 of costs incurred below annual funded target costs, and provided that minimum or better performance metrics are achieved by the contractor during the annual period.

1.7.3 When allowable costs incurred are more than target cost (overrun) that have been funded: the contractor shall earn an annual cost incentive fee calculated as available annual target fee (50% available for cost incentive), decreased by $.50 (share ratio is 50/50) for every $1 of costs incurred above annual funded target costs, and provided that minimum or better performance metrics are achieved by the contractor during the annual period.

1.7.4 Performance Based Adjustments to Cost Incentives: Table 4 identifies negative adjustments to cost incentive fees when section 1.6 technical performance metrics, at minimum or better performance levels, are NOT achieved by the contractor; however, under no circumstances will incentive fee be reduced below the minimum incentive fee of $0.

% Reduction to Calculated Cost Incentive Fee IAW paragraph 1.7.2,

1.7.3 or 1.7.4 Sensor Maintenance -Operational Availability 30% Sensor Maintenance – Operational Status 30% RTS Network Maintenance - Network Availability 30% Calibration – TMDE Deficiency 10% Total Reduction 100%

1.7.5 Failure to pass an Army level Security Inspection (reference PWS section x.x) that results in shutdown or delay in RTS operations will result in a 5% downward adjustment of the calculated cost incentive fee for the assessment period in which the inspection failure takes place; however, under no circumstances will incentive fee be reduced below the minimum incentive fee of $0.

1.0 RETS INCENTIVE FEE