10-12
Procurement
Information Circular
August 26, 2010
|
|
MEASURING
EFFECTIVENESS OF AWARD FEE CONTRACTS
PURPOSE: This Procurement
Information Circular (PIC) is issued to provide guidance relative to completing
the award fee data fields recently incorporated into the NASA PPDB as a result
of the requirements contained in 16.401.
BACKGROUND: On October 14, 2009, the Federal Acquisition
Regulation (FAR) was revised to implement section 814 of the National Defense
Authorization Act for FY 2007 as well Section 867 of the National Defense
Authorization Act for FY 2009. These
statutes required, among other things, that Federal Agencies “collect relevant
data on award and incentive fees paid to contractors; have mechanisms in place
to evaluate such data on a regular basis; and include performance measures to
evaluate the effectiveness of award and incentive fees as a tool for improving
contractor performance and achieving desired program outcomes.” The implementing language in the FAR reads as
follows:
FAR 16.401(f)
states, “Incentive- and Award-Fee
Data Collection and Analysis. Each agency shall collect relevant data
on award fee and incentive fees paid to contractors and include performance
measures to evaluate such data on a regular basis to determine effectiveness of
award and incentive fees as a tool for improving contractor performance and
achieving desired program outcomes. This information should be considered as
part of the acquisition planning process (see 7.105) in determining
the appropriate type of contract to be utilized for future acquisitions.”
NASA has implemented these new FAR requirements by
incorporating new evaluation fields in the NASA Past Performance Database
(PPDB) that shall be completed on all award fee contracts. These new data fields are as follows:
1. Available award
fee amount for the evaluation period
2. Amount of award
fee earned for the evaluation period
3. Award fee
rating for the evaluation period (Excellent, Very Good, Good, Satisfactory and
Unsatisfactory).
4. Did the use of Award Fee motivate the Contractor’s overall cost,
schedule and technical performance as measured against contract requirements in
accordance with the criteria stated in the Award Fee Plan? Please
explain.
5. Were the objectives enhanced by using an Award Fee contract as stated
in the determination and findings required at FAR 16.401(d)? Please
explain.
GUIDANCE: Contracting officers shall complete the above
listed award fee fields in the NASA PPDB for all award fee contracts including
hybrid contracts that contain award fee provisions. The award fee fields shall be completed
beginning with the next regularly scheduled past performance evaluation. The award fee fields are not required to be
completed for evaluations that were completed prior to the effective date of
this PIC. In completing the fields, the
following guidance is provided:
1.
In the event that more than one
award fee evaluation period has occurred during the past performance assessment
period, an assessment must be completed for each award fee evaluation
period. The award fee data must be
entered for each award fee evaluation period in order for us to pull reports,
analyze the data, and respond to OMB/OFPP data calls relative to this information.
2.
For the field, “Did the use
of award fee motivate the contractor’s overall cost, schedule, and technical
performance as measured against contract requirements in accordance with the
criteria stated in the award fee plan?
Please explain”, you must first answer yes or no to the question: -and
then provide a detailed narrative explanation supporting your yes or no
assessment. This narrative should
highlight how, through the award fee process, the contractor’s performance was
improved (e.g. Maybe in an award fee
evaluation period the contractor’s performance in an area was not excellent and
this became an area of emphasis for the next award fee evaluation period and
the contractor’s performance improved in that subsequent award fee evaluation
period. You could cite such an example as to how the award fee process
motivated the contractor towards excellent performance).
3.
For the field “Were the
acquisition’s objectives enhanced by using an award fee contract as stated in
the determination and findings required at FAR 16.401(d)? Please explain”, you must first answer yes or
no to the question: - and then provide a detailed narrative explanation
supporting your yes or no assessment.
This narrative should discuss whether the expected benefits cited in the
initial award fee determination and finding were realized.
EFFECTIVE DATE: This PIC is effective as dated and will remain in effect
until canceled or superseded.
HEADQUARTERS CONTACT:
William G. Roets II, Contract
Management Division, (202) 358-4483, email: William.Roets-1@nasa.gov.
/s/ B. Roets for
James A. Balinskas
Director, Contract Management Division
DISTRIBUTION:
PIC List