Attachment 8

> AWARD FEE DETERMINATION PLAN

TABLE OF CONTENTS

Chapter I - Overview of Award Fee Determination Plan

\- A. Purpose

\- B. Specific Contract Data

Chapter II - Personnel Involved in the Award Fee Process

\- A. Definitions

\- B. Responsibilities

Chapter III - Performance Monitoring

\- A. Overview

\- B. Performance Evaluation Categories

Chapter IV - Award Fee Determination Board Guidelines

\- A. Overview

\- B. Performance Rating Spectrum

\- C. Procedures

Attachment 8

> AWARD FEE DETERMINATION PLAN

# CHAPTER I: OVERVIEW OF AWARD FEE DETERMINATION PLAN

I. [Overview of Award Fee Determination Plan]{.underline}

A. [Purpose]{.underline}

The purpose of this Award Fee Determination Plan (AFDP) is to set forth
the basic procedures and criteria for the periodic evaluation of, and
fee determination for, the performance of the Contractor responsible for
custodial services at the IRS Headquarters building, 1111 Constitution
Ave., N.W., Washington, DC.

This plan identifies the personnel responsible for the execution of this
plan, discusses (in general terms) performance monitoring, and sets
forth guidelines for the Award Fee Determination Board (AFDB). The
Government unilaterally developed the AFDB and the findings of the AFDB
or decisions of the Fee Determination Official (FDO) are not subject to
the Disputes Clause of the contract.

The plan may be changed from time to time as the operational and/or
program priorities change. The Contractor will, however, be given
advance notice of any changes. (See Chapter III, [Performance
Monitoring]{.underline}, for further details.)

The Fee Determination Official (FDO) and the AFDB Chairperson have, as a
team, the primary management responsibility for the fair and equitable
administration of this plan. Likewise, each party identified in this
plan is charged with accomplishing his/her responsibilities in a fair
and equitable manner.

B. [Specific Contract Data]{.underline}

The contract is a Fixed-Price-Award-Fee contract with a base performance
period that will consist of a Base Year and 4 (four) Option Years
(subject to the availability of funds). The Base Year will begin on
October 1, 2008 and end on September 30, 2009. Option Year I will begin
on October 1, 2009 and end on September 30, 2010. Option Year II will
begin on October 1, 2010 and end on September 30, 2011. Option Year III
will begin on October 1, 2011 and end on September 30, 2012. Option Year
IV will begin on October 1, 2012 and end on September 30, 2013.

The Contractor is required to provide management, supervision, labor,
materials, supplies, and equipment and shall plan, schedule, coordinate
and assure effective performance of all services described herein.

The total available award fee shall be as set forth in Schedule B of the
contract. The quarterly evaluation periods and total maximum award fee
available for each quarter are set forth in the following schedule:

> Attachment 8

Total Maximum

[Evaluation Period]{.underline} [Award Fee]{.underline}

Base Period:

October 01, 2008 through Dec. 31, 2008 \$12,500

January 01, 2009 through Mar. 31, 2009 \$12,500

April 01, 2009 through June 30, 2009 \$12,500

July 01, 2009 through September 30, 2009 \$12,500

Option year(s) if exercised by the government will follow the Option
Period I with the appropriate year changing. Option Period IV will end
on September 30, 2013.

Each evaluation will be completed within 45 days after the end of the
evaluation period. The evaluation is considered complete on the date of
the Fee Determination Official\'s (FDO\'s) written notification of the
approved award fee amount to the Contractor\'s corporate office.

# CHAPTER II: PERSONNEL INVOLVED IN THE AWARD PROCESS

A. [Definitions]{.underline}

1\. [Administrative Contracting Officer (ACO)]{.underline}

The Contract Administrator with delegated authority and responsibility
to administer the contract.

2\. [Contracting Officer\'s Technical Representative (COTR)]{.underline}

An individual appointed at the time of award, in writing, by the
Procuring Contracting Officer (PCO) and is familiar with the technical
requirements of the contract.

3\. [Award Fee Determination Board (AFDB)]{.underline}

A board of IRS employees who will perform the in depth review of all
aspects of Contractor performance and recommends an appropriate award
fee. One member of the AFDB serves as the \"chairperson\" who is
responsible for ensuring the AFDB functions in accordance with this
plan.

> Attachment 8

4\. [Fee Determination Official (FDO)]{.underline}

The FDO for this Acquisition shall be the Real Estate and Facilities
Territory Manager, IRS National Headquarters. The FDO reviews the
recommendation and reports of the AFDB and the Contractor\'s
self-assessment in order to make the final determination of award fee
for each performance period. The FDO communicates this determination, in
writing, to the appropriate officials in the Contractor\'s organization.

B. [Responsibilities]{.underline}

1\. [Administrative Contracting Officer (ACO)]{.underline}

The ACO is the official with responsibility for the day-to-day
monitoring of the Contractor\'s performance in the areas of contract
compliance, contract administration, and other aspects of business
operation of the contract.

The ACO is responsible for receiving, reviewing, interpreting,
investigating and communicating performance reports from the COTR. The
ACO is also responsible for validating and assessing the Contractor\'s
version of events and resolving any difference between the COTR\'s
version and the Contractor\'s version.

The ACO is responsible for communicating these negative events and
resolving any difference between the COTR\'s version and the
Contractor\'s version.

The ACO is responsible for communicating these negative reports as soon
as possible to the Contractor to facilitate the Contractor\'s ability to
initiate corrective action.

The ACO will organize the material provided by the COTR and the
contractor in such a manner as to enable it to be used (1) as the
Board\'s agenda for the meeting, and (2) as the complete documentation
package supporting the fee recommendation. It will be organized into
separate sections for each performance evaluation category. Each section
will consist of the following material:

a\. ACO\'s Quarterly Report;

b\. COTR\'s Quarterly Report;

c\. Contractor\'s Quarterly Report with self-evaluation;

3.  Any correspondence relating to Contractor performance such as
    Contractor\'s

> response to negative reports, letters of appreciation from customers,
> etc.
>
> Attachment 8

The ACO appoints, in writing, the chairperson and all members of the
AFDB. The board is responsible for reviewing quarterly reports and
preparing and forwarding their report to the FDO in the appropriate
format. This review will assure that the AFDB\'s rationale supports the
individual ratings awarded to the Performance Evaluation Categories. If
there is a problem in the AFDB\'s rationale for its assessment and award
fee recommendation, the ACO will discuss the problem with the AFDB
Chairperson to affect a mutually acceptable resolution and adjustment.
If agreement cannot be reached with the AFDB Chairperson, the ACO will
submit to the FDO his/her rationale for an adjustment.

A. [The Contracting Officer\'s Technical Representative
(COTR)]{.underline}

> The COTR is responsible for monitoring, assessing, recording, and
> reporting the technical performance of the Contractor on a continuous
> (day-to-day) basis. To accomplish this responsibility, he/she must be
> thoroughly familiar with:

\- The Statement of Work

d.  The Contractor\'s Technical Proposal

e.  

f.  The Award Fee Determination Plan

The COTR is responsible for preparing a written performance report and
presenting all material required by the Board to make its quarterly
assessment of the Contractor\'s performance in a meeting to be held
within 35 days after the last day of the evaluation period once the
Contractor's Self-Evaluation has been received by the COTR. The COTR is
responsible for accomplishing the following procedures to produce the
documentation required for the deliberations of the AFDB:

1.  The COTR must report [all]{.underline} factual events, which
    constitute the contractor\'s required performance for the term.

2.  The COTR must review all government and contractor inspection
    reports.

The review summations must be supported by stated contract standards
with sufficient information to provide the reader with a clear
understanding of the significance of the task and its impact.

3\. [The Award Fee Determination Board]{.underline}

Each member of the AFDB is responsible for assuring that he/she is
thoroughly familiar with the contract\'s Statement of Work and this
plan. Board members should also be generally familiar with the
Contractor\'s technical proposal.

> Attachment 8
>
> During its quarterly meeting, the AFDB will perform an in depth review
> of all documentation submitted to it by the ACO, will arrive at a
> consensus score for each category after discussions, and will
> recommend the total amount of award fee to be awarded. Each member of
> the board is responsible for performing his/her duties in as fair,
> equitable, and objective a manner as possible, and provide sufficient
> rationale for their recommendations to enable the Executive Secretary,
> i.e., the assigned Contract Specialist, to prepare a clear and
> thorough report to the FDO based on recommendations of the Board.

4[.]{.underline} AFDB Chairperson

The Chairperson is responsible for conducting the meetings of the AFDB
and ensuring that the evaluation process is conducted in a fair,
equitable, and objective manner. He/she is also responsible for assuring
that the views of each of the Board\'s members are heard and considered.
Furthermore, he/she assures that the report prepared by the Executive
Secretary for his/her signature accurately reflects the opinions of the
Board. The Chairperson is also a voting member of the Board.

When appropriate, he/she directs the ACO to change or reprioritize the
weights given to the evaluation categories under this plan (for future
evaluation periods), when the needs or priorities of the appropriate
activity so dictate.

5\. [Fee Determination Official]{.underline}

It is the FDO\'s responsibility to review and consider the evaluation
report and fee recommendations made by the AFDB, to assure that the
documentation adequately supports the recommendation and is in
accordance with criteria stated in this plan; to seek clarification from
the AFDB, if required; to issue the final decision on the amount of fee
to be awarded; and to communicate that decision, in writing, to the
Contractor.

# CHAPTER III: PERFORMANCE MONITORING

A. [Overview]{.underline}

The purpose of monitoring and reporting on the Contractor\'s performance
is to ensure that the IRS receives the best quality performance
possible. Monitoring of the day-to-day performance will be accomplished
by the COTR. The COTR\'s monitoring activities will focus on the
\"quality\" and "safety" aspects of the Contractor\'s performance
requirements.

The ACO will be responsible for monitoring and evaluating administrative
aspects of the Contractor\'s performance. The ACO will also be
responsible for reviewing and assessing the documentation produced by
the COTR.

> Attachment 8

The award fee determination criteria, applied during each award fee
period, will be provided to the contractor in writing by the
Administrative Contracting Officer at least 15 calendar days prior to
the start of each award fee period. Any alteration and/or added criteria
applied after the award fee period has begun, the contractor must be
notified and must be agreed to by both parties. If the criteria from the
previous period are unchanged, no notification is necessary.

The Fee Determining Official\'s decision as to the amount of award fee
is final and is [NOT]{.underline} subject to the Disputes Clause of the
contract.

It is important that during each phase of the performance monitoring,
the Contractor be aware of how their performance is perceived. This plan
is designed so that through constant communication between the COTR,
ACO, and the Contractor, the Contractor may improve and maintain its
performance at the \"Outstanding\" level.

B. [Performance Evaluation Categories]{.underline}

For purposes of contract monitoring and assessment of performance, the
Contractor\'s overall effort is divided into three Performance
Evaluation Categories. These are as follows:

NOTE: for the Contractor's first (1^st^) quarter Award Fee for the *Base
Year* only of the contract, criteria #3a. "Contract Start Up........20%"
shall be used. All other Award Fee evaluations after that will use item
\# 3. unless it is modified by the Contracting Officer.

1\. SAFETY FOR ALL PERSONNEL........... . . . . . . . . . .. . . . . . .
. 40%

> This is the number one priority of the contract. This includes but is
> not limited to: all IRS employees, all contractors, all visitors,
> Daycare Center children, and all physically disabled/visually impaired
> individuals. This includes ensuring all contractor equipment is left
> in a safe place at all times when out on the floors, (i.e. not in
> front of doors/elevators, out in the hallway, around a blind corner,
> left on employees desks), and picking up/moving any item or ensuring
> that while cleaning a floor that nothing is done by the contractor
> could cause a person to slip, trip or fall regardless of who is at
> fault.
>
> Wiping up any liquid on a floor anywhere in the facility (i.e. a
> contractor employee goes to the restroom and notices water on the
> floor by the sink. He/she should get some paper towels and wipe it
> up).
>
> Understanding the MSDS sheets for all products used and being aware of
> a customer's sensitivity to a product or dust, ensuring that any
> replacement cleaner for that area meets the appropriate requirements.
>
> The contractor will also be evaluated on any suggestions or ideas
> submitted to the COTR which result in a safer working environment for
> all personnel.
>
> Attachment 8

2\.
COMPLAINTS.............................................................40%

> Complaints are broken down into two (2) categories, contractor
> personnel and contractor performance. Complaints may be observed,
> verbal, emailed or work tickets.
>
> Personnel issues include but are not limited too, rudeness,
> discourteous behavior, indifference, inappropriate remarks, disrespect
> or unprofessional conduct to any IRS employee, contractor, visitor or
> co-worker.
>
> Contractor performance will be monitored by ERC Work Tickets, customer
> calls to the office, Government inspections, email complaints and
> observations by the COTR, Building Manager and the Custodial
> Inspectors. Faults of performance include but are not limited to,
> restroom running out of supplies, restroom maintenance items not being
> completed, scheduled trash or recycle pick up missed or a second work
> ticket being called in for the same reason. Periodic work not being
> completed in the month it is due.
>
> One (1) verified contractor personnel complaint for the quarter or 8
> verified performance complaints in a calendar month shall constitute a
> "0" rating for this criteria.

-   INNOVATION, COOPERATION AND IMPROVEMENTS............20%

> As a historical building that has just gone under a major renovation,
> special care must be given to ensure no further deterioration of the
> facility occurs and that the newly renovated Basement, restrooms, Bomb
> Blast windows, window treatments and other improvements be kept in tip
> top shape.
>
> The contractor is encouraged to submit ideas to the COTR regarding
> ways to: keep restrooms clean, operational and odor free; removing old
> adhesive on glass, marble and stone; maintaining the wooden lattice
> and tile floors in the elevators and conference rooms; cleaning the
> bronze and brass ornament grill work; improving the cleanliness of the
> Daycare Center and Cafeteria/Snack Bar and writing up work tickets for
> non-custodial maintenance in the restrooms (i.e. dead batteries in the
> automatic flush valves, burn out lights, broken stall locks, etc).
>
> 3a. CONTRACT START
> UP.....................................................20%
>
> The contractor will be evaluated on how well they adhere to the
> submittals/requirements called for by this contract. This include
> having adequate management, staff, equipment and
>
> COTR approved supplies on site from the 1^st^ day of the contract.
>
> Attachment 8
>
> CHAPTER IV: AWARD FEE DETERMINATION BOARD GUIDELINES

A. [Evaluation Overview]{.underline}

The evaluation process involves all levels of Contractor and Government
personnel \-- technical, administrative, and management personnel.

The Contractor manages its employees to perform the requirements of the
contract in view of the evaluation criteria and in hopes of earning the
award fee.

Government personnel (principally the COTR and the ACO) monitor, assess,
document, and report on the Contractor\'s performance. IRS officials
will review and assess the reports submitted by the COTR and ACO, decide
upon the amount of fee to be awarded, and communicate that decision to
the Contractor\'s corporate management.

Corporate management relays the results of the award fee decision to
their on site Project Management, which in turn, relays it to the
performers of the contract.

Thus, the communications loop, with regards to evaluation of
performance, completes a full circle. Communication lines cross between
levels during the cycle, thereby [enhancing]{.underline} the prospects
for outstanding performance, as well as the earliest possible correction
of substandard performance.

The constant monitoring performed by Government personnel enables the
Government to give better technical direction to the Contractor; assures
that the transportation needs of the National Office are satisfied; and
\"trouble-shoots\" performance problems before they become significant.

During the evaluation process, the Contractor is able to voice its
opinion of its performance and respond to negative evaluations or
clarify the situation as the negative performance occurs. The constant
feedback and interchange of ideas can create an optimum climate for
satisfactory or outstanding contract performance.

Expected performance levels must be realistic, so that the Government
can motivate the Contractor towards excellent or outstanding performance
and the Contractor can strive towards earning the maximum award fee. The
decisions of the FDO should give a clear indication of what IRS
Headquarters management expects from the Contractor, as well as what it
considers substandard, satisfactory, or outstanding performance. It is
important that the integrity of the evaluation process be maintained at
all times to assure reasonable judgment has been made in the fee
determination process. Monitoring, reporting, and evaluation procedures
should be performed by Government personnel who are knowledgeable of the
contract requirements but sufficiently diversified to create a balance
in the system, thereby assuring management judgment and objectivity are
brought to bear on the award fee decision.

> Attachment 8

B. [Performance Rating Spectrums]{.underline}

The award fee amount to be paid quarterly will be determined by the IRS
in accordance with this plan and the award fee criteria given to the
contractor. Once a numerical percentage (representing performance) is
established, the percentage of quarterly award fee to be paid will be
determined according to the formula:

AWARD FEE = (Performance Score minus (-) 60) Squared; & divided by 12.25

If the contractor\'s performance rating is 60% or less, there will not
be an award fee payment for that quarter. The Award Fee may not exceed
100% of the maximum award fee amount stated in this plan and Section B
of the contract. The Award Fee Performance Table is included in this
plan.

C. [Procedures]{.underline}

Prior to their quarterly meeting, each member of the AFDB should review
the monthly summaries with any attached reports and the Contractor\'s
self-evaluation report. The Board members should note any questionable
areas and compute a tentative score for each Performance Evaluation
Category.

At the meeting, the Board should discuss its tentative ratings and, if
necessary, seek clarification from the ACO on questionable or uncertain
items. The Board should then arrive at a rating for each Performance
Evaluation Category, based upon its assessment of the documentation.
(Note that the Board\'s decision is not strictly limited to the
consideration of the documentation.)

All Board members are expected to apply discretion and judgment to the
evaluation process. Their overall perceptions, observations, and
reactions to the Contractor\'s performance may be brought to bear on the
evaluation process. At the discretion of the AFDB chairperson, the Board
may arrive at its rating by averaging individual scores or by arriving
at a consensus rating for each Performance Evaluation Category.

The Board will then agree on the wording of the narrative (which is
included in the report to the Fee Determination Official) that supports
the rating given by the Board. The AFDB Executive Secretary (in this
case the Contract Specialist) will prepare the narrative report for the
signature of the AFDB Chairperson reflecting the board's views. The
report should be concise and clear, but sufficiently detailed to inform
the FDO and the Contractor of the Board\'s rationale for scoring.

> Attachment 8

Within 35 days after the completion of the quarterly evaluation period,
the AFDB Executive Secretary will forward the signed report to the FDO,
along with a proposed transmittal letter to the Contractor. Copies of
the signed report will be furnished to the AFDB members. The FDO will
review the report and accompanying documentation, pursue any areas
requiring clarification with the Board, and transmit the report with the
final fee determination to the Contractor.

TARGET SCHEDULE FOR QUARTERLY EVALUATIONS

Calendar Days From Responsible End of

[Party]{.underline} [Activity]{.underline} [Performance
Quarter]{.underline}

ACO Prepares and distributes summary Within 25 days

> of quarterly evaluation to AFDB

members. Furnishes supporting

documentation.

Contractor\'s Submits self-evaluation report Within 25 days

Project Manager through ACO to AFDB member.

Members, AFDB Review documentation submitted Within 25-30 days

by ACO and Contractor\'s Project

Manager

AFDB Meets to decide upon recommended Within 30-35 days

award fee

Contract Admin./ Contract Administrator prepares a Within 35-40 days

Chairperson written report on AFDB\'s findings.

AFDB After review, Chairperson signs

report. Contract Administrator

forwards report to Fee Determination

Official (furnishes copies to AFDB

members).

ACO Reviews report from AFDB and has Within 40-42 days

contract specialist prepare

documentation for FDO review.

> Attachment 8

FDO FDO reviews report, secures any Within 40-45 days

required clarification, and

forwards final decision to

Contractor.

AWARD FEE PERFORMANCE TABLE

AWARD FEE**:** (Actual Performance Score minus (-) 60 Squared; & divided
by 12.25

> Example: 94-60 = 34 X 34 (squared) = (1,156) divided by 12.25 =
> Percent of total award fee to be awarded.
>
> If the contractor scores a 95% (or higher) performance score, they
> will receive 100% of the maximum award fee amount for the evaluation
> period. If the contractor\'s performance score is 60% or less, there
> will be no award fee payment for that quarter. The award fee may not
> exceed 100% of the annual award fee amount as stated in Section B of
> the contract.
>
> Attachment 8

Performance Percentage of

[Score Quarterly Award Fee]{.underline}

94 - 60 = 34$$ Squared = (1,156) Divided by 12.25 = 94.4%

93 - 60 = 33 (1,089) 12.25 = 88.9%

92 - 60 = 32 (1,024) 12.25 = 83.6%

91 - 60 = 31 (961) 12.25 = 78.4%

90 - 60 = 30 (900) 12.25 = 73.5%

89 - 60 = 29 (841) 12.25 = 68.7%

88 - 60 = 28 (784) 12.25 = 64.0%

87 - 60 = 27 (729) 12.25 = 59.5%

86 - 60 = 26 (676) 12.25 = 55.2%

85 - 60 = 25 (625) 12.25 = 51.0%

84 - 60 = 24 (576) 12.25 = 47.0%

83 - 60 = 23 (529) 12.25 = 43.2%

82 - 60 = 22 (484) 12.25 = 39.5%

81 - 60 = 21 (441) 12.25 = 36.0%

80 - 60 = 20 (400) 12.25 = 32.7%

79 - 60 = 19 (361) 12.25 = 29.5%

78 - 60 = 18 (324) 12.25 = 26.4%

77 - 60 = 17 (289) 12.25 = 23.6%

76 - 60 = 16 (256) 12.25 = 20.9%

75 - 60 = 15 (225) 12.25 = 18.4%

74 - 60 = 14 (196) 12.25 = 16.0%

73 - 60 = 13 (169) 12.25 = 13.8%

72 - 60 = 12 (144) 12.25 = 11.8%

71 - 60 = 11 (121) 12.25 = 9.9%

70 - 60 = 10 (100) 12.25 = 8.2%

69 - 60 = 9 (81) 12.25 = 6.6%

68 - 60 = 8 (64) 12.25 = 5.2%

67 - 60 = 7 (49) 12.25 = 4.0%

66 - 60 = 6 (36) 12.25 = 2.9%

65 - 60 = 5 (25) 12.25 = 2.0%

64 - 60 = 4 (16) 12.25 = 1.3.%

63 - 60 = 3 (9) 12.25 = 0.7%

62 - 60 = 2 (4) 12.25 = 0.3%

61 - 60 = 1 (2) 12.25 = 0.1%

60 - 60 = 0 0.0%