PGI 216.470 Other applications of award

fees.

The “award amount” portion of the fee may be used in other types of contracts under the following

conditions:

(1) The Government wishes to motivate and reward a contractor for—

(i) Purchase of capital assets (including machine tools) manufactured in the United States, on major

defense acquisition programs; or

(ii) Management performance in areas which cannot be measured objectively and where normal

incentive provisions cannot be used. For example, logistics support, quality, timeliness, ingenuity,

and cost effectiveness are areas under the control of management which may be susceptible only to

subjective measurement and evaluation.

(2) The “base fee” (fixed amount portion) is not used.

(3) The chief of the contracting office approves the use of the “award amount.”

(4) An award review board and procedures are established for conduct of the evaluation.

(5) The administrative costs of evaluation do not exceed the expected benefits.

TABLE 16-1, PERFORMANCE EVALUATION CRITERIA

Submarginal Marginal Good Very Good Excellent

A

Time of

Delivery.

(A-1)

Adherence to

plan

schedule.

Consistently

late on 20%

plans

Late on 10%

plans w/o prior

agreement

Occasional

plan late

w/o

justification.

Meets plan

schedule.

Delivers all

plans on

schedule &

meets prod.

Change

requirements

on schedule

(A-2)

Action on

Anticipated

delays.

Does not

expose changes

or resolve them

as soon as

recognized.

Exposes changes

but is dilatory in

resolution on

plans.

Anticipates

changes,

advise

Shipyard

but misses

completion

of design

plans 10%.

Keeps Yard

posted on

delays, resolves

independently

on plans.

Anticipates in

good time,

advises Shipyard, resolves

independently

and meets

production

requirements.

(A-3)

Plan

Maintenance.

Does not

complete

interrelated

systems studies

concurrently.

System studies

completed but

constr. Plan

changes delayed.

Major work

plans

coordinated

in time to

meet

production

schedules.

Design changes

from studies

and interrelated

plant issued in

time to meet

product

schedules.

Design

changes,

studies

resolved and

test data

issued ahead

of production

requirements.
B

Quality of

Work.

(B-1)

Work

Appearance.

25% dwgs. Not

compatible with

Shipyard repro.

processes and

use.

20% not

compatible with

Shipyard repro.

processes and

use.

10% not

compatible

with

Shipyard

repro.

processes

and use.

0% dwgs

prepared by

Des. Agent not

compatible with

Shipyard repro.

processes and

use.

0% dwgs.

Presented

incl. Des.

Agent,

vendors,

subcontr. Not

compatible

with Shipyard

repro

processes and

use.

(B-2)

Thoroughness

and Accuracy

of Work.

Is brief on plans

tending to leave

questionable

situations for

Shipyard to

resolve.

Has followed

guidance, type

and standard

dwgs.

Has

followed

guidance,

type and

standard

dwgs.

Questioning

and

resolving

doubtful

areas.

Work complete

with notes and

thorough

explanations for

anticipated

questionable

areas.

Work of

highest

caliber

incorporating

all pertinent

data required

including

related

activities.

(B-3)

Engineering

Competence.

Tendency to

follow past

practice with no

variation to

meet reqmts.

job in hand.

Adequate engrg.

To use & adapt

existing designs

to suit job on

hand for routine

work.

Engineered

to satisfy

specs.,

guidance

plans and

material

provided.

Displays

excellent

knowledge of

constr. Reqmts.

considering

systems aspect,

cost, shop

capabilities and

procurement

problems.

Exceptional

knowledge of

Naval

shipwork &

adaptability

to work

process

incorporating

knowledge of

future

planning in

Design.

B

Quality of

Work

(Cont’d)

(B-4)

Liaison

Effectiveness

Indifferent to

requirements of

associated

activities,

related

systems, and

Shipyard

advice.

Satisfactory but

dependent on

Shipyard of force

resolution of

problems without

constructive

recommendations

to subcontr. or

vendors.

Maintains

normal

contract

with

associated

activities

depending

on Shipyard

for

problems

requiring

military

resolution.

Maintains

independent

contact with all

associated

activities,

keeping them

informed to

produce

compatible

design with

little assistance

for Yard.

Maintains

expert

contact,

keeping Yard

informed,

obtaining info

from equip,

supplies w/o

prompting of

Shipyard.

(B-5)

Constant

surveillance

required to

keep job from

slipping—assign

to low priority

to satisfy needs.

Requires

occasional

prodding to stay

on schedule &

expects Shipyard

resolution of

most problems.

Normal

interest and

desire to

provide

workable

plans with

average

assistance

& direction

by

Shipyard.

Complete &

accurate job.

Free of

incompatibilities

with little or no

direction by

Shipyard.

Develops

complete and

accurate

plans, seeks

out problem

areas and

resolves with

assoc. act.

ahead of

schedule.

C

Effectiveness

in Controlling and/or

Reducing

Costs

(C-1)

Utilization of

Personnel

Planning of

work left to

designers on

drafting boards.

Supervision sets

& reviews goals

for designers.

System

planning by

supervisory,

personnel,

studies

checked by

engineers.

Design

parameters

established by

system

engineers &

held in design

plans.

Mods. to

design plans

limited to less

than 5% as

result lack

engrg.

System

correlation.
(C-2)

Control

Direct

Charges

(Except

Labor)

Expenditures

not controlled

for services.

Expenditures

reviewed

occasionally by

supervision.

Direct

charges set

&

accounted

for on each

work

package.

Provides

services as part

of normal

design function

w/o extra

charges.

No cost

overruns on

original

estimates

absorbs

service

demands by

Shipyard.

(C-3)

Performance

to Cost

Estimate

Does not meet

cost estimate

for original

work or

changes 30%

time.

Does not meet

cost estimate for

original work or

changes 20%

time.

Exceeds

original est.

on change

orders 10%

time and

meets

original

design

costs.

Exceeds original

est. on changing

orders 5% time.

Never

exceeds

estimates of

original

package or

change

orders.

TABLE 16-2,

CONTRACTOR

PERFORMANCE

EVALAUTION

REPORT

Ratings Period of

____________________________________

Excellent Contract Number

______________________________

Very Good Contractor

____________________________________

Marginal Date of Report

_________________________________

Submarginal PNS Technical

Monitor/s________________________

____________________________________________

CATEGORY CRITERIA RATING ITEM

FACTOR

EVALUATION

RATING

CATEGORY

FACTOR

EFFICIENCY

RATING

A-1 Adherence to Plan Schedule ________ x .40 = __________

A-2 Action on

Anticipated Delays ________ x .30 = __________

A-3 Plan Maintenance ________ x .30 = __________

Total Item Weighed Rating __________ x .30 = __________

B QUALITY OF WORK

B-1 Work Appearance ________ x .15 = __________

B-2 Thoroughness and Accuracy of Work ________ x .30 = __________

B-3 Engineering Competence ________ x .20 = __________

B-4 Liaison Effectiveness ________ x .15 = __________

B-5 Independence and Initiative ________ x .15 = __________

Total Item Weighed Rating __________ x .40 = __________

C

EFFECTIVE-NESS IN CONTROL-LING AND/OR

REDUCING COSTS

C-1 Utilization of Personnel _______ x .30 = __________

C-2 Control of all Direct Charges Other than

Labor _______ x .30 = __________
C-3 Performance to Cost Estimate _______ x .40 = __________

Total Item Weighed Rating __________ x .30 = __________

TOTAL WEIGHT RATING

_________________________________

Rated by:

_________________________________________________

Signature(s)

_______________________________________________

NOTE: Provide supporting data and/or justification for below average or outstanding item ratings.

Parent topic: PGI 216.4 -INCENTIVE CONTRACTS