ATTACH - ARP Incentive Fee Plan Draft.pdf

FA8106-23-D-XXXX

Attachment #

26 Jun 2022

T-6A AVIONICS REPLACEMENT PROGRAM (ARP)

TECHNOLOGY MATURATION & RISK REDUCTION,

ENGINEERING & MANUFACTURING DEVELOPMENT

AND PRODUCTION PHASES

INCENTIVE FEE PLAN

27 June 2022

1. General

1.1. This Incentive Fee Plan for the T-6A Avionics Replacement Program (ARP) Technology Maturation & Risk Reduction (TMRR), Engineering & Manufacturing Development (EMD) and the Production Phases, Contract FA8106-23-D-#### (CLINs 0006, 0010, 0015, 0018, 0025), is the basis for evaluation of the contractor’s performance; and furthermore the assessment of that performance for the application of fee. It describes the specific criteria, incentive fee and disincentive distribution, and procedures used to determine the amount of fee earned or forfeited.

1.2. This incentive fee arrangement will incentivize outstanding contractor performance based on the incentive fee pool and criteria. Incentive fee determinations outlined in this plan utilize objective criteria established at contract award. The process is based on review of the contractor’s performance against the criteria set forth in this plan.

2. Incentive Fee Pool

2.1. The total Incentive Fee Pool is comprised of the sum of the fee for the five areas listed in Table 1 and Table 2, on the following page. The incentivized objectives were developed to achieve desired contractor performance outcomes.

2.2. The incentive for each of the areas shall be calculated on an independent or stand-alone basis.

Table 1

Aircraft System Total Incentive Fee Pool

#% at Target Cost =

$TBD

Area

Objective

% of Incentive Fee Pool

Total dollar value

1 Schedule Incentive for Preliminary Design Review CLIN x.xx%

2 Schedule Incentive for Critical Design Review

$TBD

3 Schedule Incentive for Test Readiness Review CLIN x.xx% $TBD

Table 2

GBTS

Total Incentive Fee Pool

#% at Target Cost =

Area

Objective

% of Incentive Fee Pool

Total dollar value

1 Schedule Incentive for Preliminary Design Review

2 Schedule Incentive for Critical Design Review

3. Incentive Fee Process

3.1. Objective performance incentives have been designed to relate fee to the results achieved by the contractor based on specified objectives as stated in this plan.

The critical aspects to exceed the contracted effort have been chosen.

3.2. The contractor’s performance for fee areas one through five will be assessed against the established completion criteria as set forth in Section 6.

4. Organization Responsibilities

4.1. The Government Contracting Officer will provide the contractor notification of the incentive fee earned as determined by application of the completion criteria and methodology set forth herein. Subsequently, the Contracting Officer will issue a modification to this delivery order obligating any performance or schedule incentive fees earned within 15 business days of the contractor’s notification of event completion. The contractor may invoice for performance incentive fees immediately upon receipt of the modification.

4.2. Any requirement completion delays attributable to the contractor’s performance will not warrant adjustments for fee purposes. Any Government caused delays that effect requirement completion will be a basis for the contractor to submit a request for equitable adjustment.

5. Schedule Incentive

5.1. The Contractor may earn schedule/performance Incentive Fixed Fee (Areas 1-5) not exceeding a total of $TBD in accordance with criteria specified in section (6) below.

6. Completion Criteria

6.1. Aircraft System - Preliminary Design Review (PDR)

6.1.1. Scheduled Date: 209 calendar days after contract PoP start date

6.1.2. Target Date: 45 days (or more) prior to scheduled date

6.1.3. Completion Criteria

6.1.3.1. Aircraft System PDR is completed in accordance with the SOW

3.14.3 and Airworthiness Certification Criteria (ACC) Report A052 reviewed with Government.

6.1.3.2. Aircraft System PDR entry criteria:

6.1.3.2.1. Aircraft System PDR entry in accordance with SOW 3.14.3

6.1.3.2.2. All assigned Aircraft System SFR Action items have been closed.

6.1.3.2.3. Aircraft System PDR technical products for each system hardware and software Configuration Item (CI) are available to the cognizant PDR participants prior to the review.

6.1.3.2.4. Acceptance of all applicable CDRL documentation: A003, A004, A005, A008, A011, A012, A015, A018, A019, A020, A023, A029, A030, A031, A032, A033, A035, A036, A041, A042, A043, A046, A048, A053, A061, A064, A071, A073, A081, A082, A088, A089, A090, A092, A095, A104, A105,

6.1.3.2.5. Data repository that includes: Updated System Specification and Preliminary subsystem design specifications for each CI (hardware and software), with supporting trade-off analyses and data.

6.2. Aircraft System - Critical Design Review (CDR)

6.2.1. Scheduled Date: The latter of either 162 calendar days after scheduled completion of PDR or 371 calendar days after contract award

6.2.2. Target Date: 45 days (or more) prior to scheduled date

6.2.3. Completion Criteria

6.2.3.1. Aircraft System CDR is completed in accordance with the SOW 3.14.4 and Airworthiness Certification Criteria (ACC) Report A052 submitted for Government approval.

6.2.3.2. Aircraft System CDR entry criteria in accordance with SOW 3.14.4

6.2.3.2.1. Aircraft System PDR successfully completed.

6.2.3.2.2. All assigned Aircraft System PDR Action items have been

6.2.3.2.3. All Aircraft System PDR exit criteria key issues satisfied, if applicable.

6.2.3.2.4. Acceptance of all applicable CDRLS: A003, A004, A005, A008, A011, A012, A015, A018, A019, A020, A023, A029, A030, A031, A032, A033, A035, A036, A040, A041, A042, A043, A052, A053, A068, A070, A073, A082, A087, A088, A089, A090, A092, A095, A104,

6.2.3.2.5. Data repository that includes: Updated System

Specification and detailed subsystem design specifications for each CI (hardware and software), with supporting trade-off analyses and data.

6.3. Aircraft System - Test Readiness Review (TRR)

6.3.1. Scheduled Date: The latter of either 90 calendar days after accepted System CDR or 463 calendar days after contract award

6.3.2. Target Date: 30 days (or more) prior to scheduled date

6.3.3. Completion Criteria

6.3.3.1. Aircraft System TRR is completed in accordance with the SOW

3.14.5 and ACC Report A052 is submitted to support First Flight approval.

6.3.3.2. Aircraft System TRR entry criteria in accordance with SOW 3.14.5

6.3.3.2.1. Aircraft System CDR successfully completed.

6.3.3.2.2. All assigned Aircraft System CDR Action Items have been

6.3.3.2.3. All Aircraft System CDR exit criteria key issues satisfied, if applicable.

6.3.3.2.4. Acceptance of all applicable CDRLS: A025, A026, A028, A064, A068, A113. A011, A012, A044, A045, A047, A052, A081, A092, A094

6.3.3.2.5. Aircraft System ARP SIL testing completed.

i. Clearance Data Package

ii. Safety Coordination Memo to address ground test readiness

iii. Software Readiness Identification Memo(s) (SRIM) for the following items:

6.3.3.2.6. ARP Kit Proof and VAL/VER Mod Kits Ordered.

i. Three (3) quantity A kits

ii. Three (3) quantity B kits

6.3.3.2.7. ARP Hardware Test Analysis & Report Submittal

i. Government Approval (CEA) signature for ACN

ii. ACN marked for Limited Laboratory clearance (Contractor or Government)

iii. Safety Memo to address laboratory and ground test readiness

iv. CRL Functional Test as described in the CRL Functional Test Procedure.

6.3.3.2.8. ARP Deliverables and Prep for start of Ground test

i. Preliminary Hazard Analysis

ii. Weight and Balance Report

iii. Stress and Loads Analysis

iv. Electrical Load Analysis

v. Modification Wire List

vi. Modification Ground Test Plan

vii. System Test Plan

viii. Ground Test Procedure

ix. Preliminary Tech Orders

x. CDR Package and Meeting Minutes suitable for submittal to PEO

xi. VCN addressing environmental analysis CRL system

6.4. GBTS - System Preliminary Design Review (PDR)

6.4.1. Scheduled Date: 489 calendar days after contract award

6.4.2. Target Date: 45 days (or more) prior to scheduled date

6.4.3. Completion Criteria

6.4.3.1. GBTS PDR is completed in in accordance with SOW 7.2.3.2

6.4.3.2. GBTS PDR entry criteria

6.4.3.2.1. GBTS PDR entry in accordance with SOW 7.2.3.1

6.4.3.2.2. All assigned SFR Action items have been closed.

6.4.3.2.3. GBTS PDR technical products for each system hardware and software Configuration Item (CI) are available to the cognizant PDR participants prior to the review.

6.4.3.2.4. Acceptance of all applicable CDRL documentation: A003, A004, A005, A008, A011, , A018, A019, A020, A023, A029, A030, A031, A032, A033, A035, A041, A042, A043, A053, A081, A088, A043, A061,

6.4.3.2.5. Data repository that includes: Updated System Specification and Preliminary subsystem design specifications for each CI (hardware and software), with supporting trade-off analyses and data.

6.5. GBTS - System Critical Design Review (CDR)

6.5.1. Scheduled Date: 579 calendar days after contract award

6.5.2. Target Date: 45 days (or more) prior to scheduled date

6.5.3. Completion Criteria

6.5.3.1. GBTS CDR is completed in accordance with SOW 7.2.4.2

6.5.3.2. GBTS CDR entry criteria in accordance with SOW 7.2.4.1

6.5.3.2.1. GBTS PDR successfully completed.

6.5.3.2.2. All assigned GBTS PDR Action items have been closed.

6.5.3.2.3. All GBTS PDR exit criteria key issues satisfied, if applicable.

6.5.3.2.4. Acceptance of all applicable CDRLS: A003, A004, A005, A008, A011, A018, A019, A020, A023, A024, A029, A030, A031, A032, A033, A035, A040, A041, A042, A043, A052, A053, A054, A064, A068, A081, A112.

6.5.3.2.5. Data repository that includes: Updated System

Specification and detailed subsystem design specifications for each CI (hardware and software), with supporting trade-off analyses and data.

6.6. Aircraft Modification Delivery/Installations

6.6.1. Scheduled Date: 909 calendar days after Contract award

6.6.2. Target Date: Delivery on scheduled date

6.6.3. Completion Criteria

6.6.3.1. Aircraft System DT/OT testing is completed

6.6.3.2. ARP Installation entry criteria:

6.6.3.2.1. Aircraft System DT/OT successfully completed.

6.6.3.2.2. All assigned Aircraft System DT Action items have been

6.6.3.2.3. All assigned Aircraft System DT exit criteria key issues satisfied, if applicable.

6.6.3.2.4. ARP STC issued by FAA and Airworthiness issued by

MCO

6.6.4. Aircraft modification delivery (disincentive) will not be effective for the first five (5) months of ARP installations (Approximately 45-50 ARP installations). This will allow the Contract Field Teams a learning curve for improved efficiencies and procedures.

6.6.5. Acceptance of all applicable CDRLS: A003, A004, A005, A008, A011, A018, A019, A020, A023, A029, A030, A031, A032, A033, A040, A041, A042, A043, A052, A053, A068. A043, A061

7. Schedule Incentive Validation Procedures

7.1. Thirty days is allowed from Cognizant Engineering Authority (CEA) approval for the contracting officer to authorize payment. A DD250 shall be submitted via WAWF with inspection/acceptance at destination (contracting officer) for review and payment authorization or denial. Supporting documentation that all validation criteria have been met will be submitted with the DD250 and WAWF invoice. The System Program Office (SPO) and CEA will review the applicable validation criteria and the CEA will approve (via e-mail) that all criteria have been met prior to payment authorization, of an otherwise proper invoice, by the contracting officer.

7.2. Thirty days are allowed for the CEA, after contractor submittal of validation criteria, to review and approve the submittal(s), covering the complete list of validation criteria. If no inquiries or approvals from the Government are received by the contractor after thirty day review period has elapsed, the submittals will be considered approved as submitted.

7.3. Two (2) additional weeks are allowed for the contractor after receipt of CEA questions and/or comments (if required) to review and respond (or correct) with no impact to schedule incentive fee. Two (2) additional weeks are allowed for the CEA, after contractor response, for the CEA and staff to review the documentation for further comments. The completion date for the event is considered to be the date of submittal or the date of resolution of the final SPO inquiry if not completed within the two (2) week response period.

8. Schedule Incentive Fees

8.1. Schedule Incentive Fees are earned as listed in table 3 & 4, below.

8.1.1. Table 3 – Aircraft System Incentives - Page 10 of 11

8.1.2. Table 4- GBTS Incentives – Page 11 of 11

Table 3 AIRCRAFT SYSTEM INCENTIVES Event Measure % Fee Earned $ Fee Earned

Early completion of

PDR

45 days prior to scheduled date

30-44 days prior to scheduled date

15-29 days prior to scheduled date

1-14 days prior to scheduled date on time or late

100%

75%

40%

20%

0%

$0

CDR

45 days prior to scheduled date

30-44 days prior to scheduled date

15-29 days prior to scheduled date

1-14 days prior to scheduled date

TRR

30 days prior to scheduled date

15-29 days prior to scheduled date

1-14 days prior to scheduled date

70%

30%

Aircraft modification delivery (disincentive)

3 or more days prior to scheduled deliver order on time - scheduled date

3 days or more late from scheduled delivery order

-25%

-40%

Table 4 GBTS INCENTIVES

Event Measure % Fee

$ Fee Earned

GBTS –

Early completion of PDR

45 days prior to scheduled date

30-44 days prior to scheduled date

15-29 days prior to scheduled date

1-14 days prior to scheduled date

GBTS –

Early completion of CDR

45 days prior to scheduled date

30-44 days prior to scheduled date

15-29 days prior to scheduled date

1-14 days prior to scheduled date