# Presentation: 901819

## Award Term (AT)

*September 14, 2007*

- Performance Evaluation Guidance - Sensitive Predecisional Data

## AT Standardization Team Members

- Laurie DeClaire, Contracting Officer (CO), Institutional Procurement Office
- Roberta Beckman, Team Lead, Projects Procurement Office
- Billy Autry, Deputy Manager, Procurement Policy & Systems Office
- Jessica Miller, Team Lead, Institutional Procurement Office
- Stephanie Hunter, CO, Projects Procurement Office
- John Trahan, Team Lead, Space Station Procurement Office
- Lara Procknow, Contract Specialist, Institutional Procurement Office
- Delene Sedillo, Manager, Projects Procurement Office
- Susan Sinclair, Technical, Extravehicular Activity (EVA), Robotics, & Crew Systems Operations
- Liz Fountain, Alternate Contracting Officer’s Technical Representative (COTR), Orion Project, Constellation Program

- Performance Evaluation Guidance - Sensitive Predecisional Data

**Notes:**
AT is similar to AF except that it rewards a contractor w/ an additional POP rather than additional profit.
Feel free to contact members of the team --- Spent the last yr researching various approaches to AT  --- a lot of benchmarking
This is guidance!  May be variations in the approach depending on your specific procurement.  
View AT as a means to set the bar higher – Meaning performance must be excellent or outstanding 

## Goals of the Presentation

- Explain how Award Term may be implemented at JSC.
- Obtain Industry feedback on JSC’s approach to Award Term.

- Performance Evaluation Guidance - Sensitive Predecisional Data

## AT Defined

- What is Award Term Contracting?
- A non-monetary incentive that can stand alone or be used in combination with other contract incentives.
- A disciplined process used to determine whether to continue a longer business relationship with a contractor.
- Contracts with a potential length greater than 5 years require a request for a deviation from FAR 17.204(e) & NASA FAR Supplement (NFS) 1817.204(e)(i).
- It rewards a contractor with excellent performance with legal entitlement to a contract extension, conditioned only on:
- The continuing need for the services
- Reasonableness of price
- The availability of funds
- It is not an option as defined in FAR 2.101.
- Under a true AT incentive, if the contractor’s performance meets the AT criteria stipulated in the contract & if any stipulated conditions such as a continuing need & availability of funds are met, then the Government must either extend the contract or terminate it for convenience or default.

- Performance Evaluation Guidance - Sensitive Predecisional Data

**Notes:**
NASA initiated a pilot program which began in late 1999, since that time NASA has approved the use of AT in more than a dozen contracts.  

## AT Use

- From our research, AT has been used on all contract types.
- Cost Plus Incentive Fee (CPIF)
- Firm Fixed Price (FFP)/Fixed Price Incentive (FPI)
- Cost Plus Fixed Fee (CPFF)
- Indefinite Delivery Indefinite Quantity (IDIQ)
- Cost Plus Award Fee (CPAF)
- When is it appropriate to use Award Term?
- Service Contracts
- Recurring requirements
- When there is a known or anticipated requirement for service that extends beyond 5 years
- The desired level of performance is feasible, but would be challenging to achieve
- Exceptional contractor performance would be beneficial & desirable
- Performance, to a large extent, can be objectively measured
**In order to continue to motivate the contractor, JSC’s position is to use CPAF during periods not subject to an AT evaluation.  **

***JSC’s recommended position is to use the AF guidelines as our ***
***approach to AT.***

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Team’s Charter

- The Team was commissioned to develop an Award Term Plan Template which would be acceptable to the Agency and would contain the features that have been shown to best motivate contractors.
- Develop a recommended evaluation format utilizing, where appropriate, the features of the award fee standardization team.

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Team’s Approach

- Research and gather data on this new form of contract incentive
- Review existing contracts, regulations, and procedures of implementing Award Term
- Collect Best Practices
- Features of the Award Term Plans in place
- Lessons learned by those implementing Award Term
- Use lessons learned to develop Award Term Plan, Clauses, & Evaluation Methodology
***Final Objective:  To develop products resulting in an award term evaluation plan, policy and clause guidance, Performance Evaluation Board (PEB) guidance, and presentation and training materials.***

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Team’s Products

- Award Term Plan Template
- Award Term/Award Fee Plan Template
- Contract provisions that describe the rights and obligations of the parties under the incentive
- Award Term Performance Evaluation Board Standardization Charts
- Products may be found on the Procurement External Website at _[http://](http://procurement.jsc.nasa.gov/procpub.htm)__[procurement.jsc.nasa.gov/procpub.htm](http://procurement.jsc.nasa.gov/procpub.htm)_

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Features of AT Plan

- Award Term Plan
- Introduction
- Description of the plan and unique features
- Evaluation periods determination of annual score
- Cost gate
- Shadow period
- AT evaluation is final
- Organizational structure
- Performance Evaluation Board (PEB) Integration Team (IT)
- PEB
- Award Term Official (ATO)
- Evaluation Period and Incentive Structure
- The schedule

- Performance Evaluation Guidance - Sensitive Predecisional Data

**Notes:**
Due to the pilot program we were able to closely review plans that were approved at the HQ level.  We were able to conduct a side-by-side comparison and draw upon the best features of each plan.  So the template we have developed is one that we believe will motivate the Ktr to strive for excellence during the life of the contract in the quality and timeliness of technical performance, safety and cost.  
Unique features of the plan
For the purposes of the evaluation of technical performance, two successive 6-mo.  Interim evaluations shall be averaged to obtain a final score,  --The cost gate & final score shall be used as a basis for the AT decision.  
Cost Gate – the tgt cost that the Ktr must meet before an additional term may be awarded.  Is based on the contract baseline as modified through K changes.
Shadow Pd – A mock evaluations whereby the Ktrs performance will not qualify the or disqualify them from earning K term.  It s a pd to resolve any transition issues associated with the new K w/o prejudice to the Ktr.  
Eval is final – Any unearned term is lost and cannot be moved into subsequent evaluation periods.  
The schedule – The period of performance may be extended to a maximum of 10 years.  

## Features of AT Plan (Con’t)

- Award Term Plan
- Evaluation Criteria and Weight
- Mirrors Award Fee (AF) with the exception of cost
- Evaluation procedures
- AOEs
- Contractor self-evaluation
- PEB findings
- ATO Preliminary AT determination
- Contractor response time
- ATO Performance Determination
- CAP
- Changes to the AT Performance Evaluation Plan
- Unilateral & mutual agreement changes
- Performance Metrics

- Performance Evaluation Guidance - Sensitive Predecisional Data

**Notes:**
Changes may be made unilaterally 30 days prior to the beginning of the evaluation period.  Changes during the evaluation pd may be made if mutually agreed upon by the parties.  

## AT Contract Period of Performance Scenarios 

- Performance Evaluation Guidance - Sensitive Predecisional Data

## AT Contract Period of Performance Scenarios (Con’t)

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Features of AF/AT Plan Template

- Contains the features discussed in the AT plan with the following additions
- Two separate and distinct evaluations occur
- Award Fee
- Award Term
- Award Fee earned at end of each 6 month evaluation
- Award Term is preliminary for the first 6 month evaluation, final after the second 6 month evaluation
- Added Appendices for Award Fee score conversion and Award Fee distribution

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Highlights of AT Standardization Evaluation

- Evaluation Criteria
- Cost gate (Meet/Does Not Meet)
- Mirrors the AF Standardization Guidelines in the areas of Technical, Management, Safety, Small Business, etc.
- Unique Features of AT
- Maximum period of performance up to 10 years
- Two semi-annual evaluation periods (scores averaged annually)
- AT earned only when an annual rating of excellent is achieved
- Shadow period (mock evaluation)

- Performance Evaluation Guidance - Sensitive Predecisional Data

## AT Performance Evaluation Board (PEB) Standardization Charts

- Award Term (AT) Evaluations mirror Award Fee Evaluations with a few exceptions
- Award Term/Award Fee contract features include:
- Prime Contractor
- Key Subcontractors
- Period of Performance
- Contract Type
- Options_* *_
- Award Term unique contract features include:
_**AT Plan**_
_**Fee structure will remain stable during the evaluation period**_
_**Cost Gate must be met before AT Evaluation performed**_
_**Award Term decision based on two successive evaluation periods**_*** ***
_**Unearned AT is lost**_
_**Award Term Official (ATO) rather than Fee Determination Official (FDO) **_

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Rollout of AT Activities

- Provide feedback on our proposed approach to ‘Got Input’ at _[http://](http://procurement.jsc.nasa.gov/procpub.htm)__[procurement.jsc.nasa.gov/procpub.htm](http://procurement.jsc.nasa.gov/procpub.htm)_ by September 21, 2007
- Review & revise process based on comments
- Brief Management
- Final posting of any changes to the following website: _[http://](http://procurement.jsc.nasa.gov/procpub.htm)__[procurement.jsc.nasa.gov/procpub.htm](http://procurement.jsc.nasa.gov/procpub.htm)_

- Performance Evaluation Guidance - Sensitive Predecisional Data

**Click here to find **
**Award Term Products**

- Performance Evaluation Guidance - Sensitive Predecisional Data

## Award Term Products

**Award Term Products**
**will be located here**

- Performance Evaluation Guidance - Sensitive Predecisional Data