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Excerpted from the Coast Guard's Phase 2 RFP
for the Integrated Deepwater System Acquisition
H.3 Performance Incentives
In addition to the overarching award term incentive, the Government believes there may be value in offering additional performance incentives motivating superior effort on specific task and delivery orders, assets or system performance attributes. The Government intends to use performance incentives to motivate the Contractor to achieve the following objectives:
- Exceed proposed IDS performance with respect to the Coast Guard program objectives of maximized operational effectiveness and minimized total ownership cost.
- Constructively and promptly respond to the inevitable changes in IDS mission requirements, demand and environment, funding profiles, and implementation schedules.
- Maximize customer/user satisfaction with IDS assets, capabilities and services.
However, the Government does not anticipate offering asset specific performance incentives in the first year of the contract. Furthermore, the variety and complexity of the work required under this contract compounded by the differing approaches taken by the three potential Offerors preclude effective specification of such specific incentive clauses prior to contract award.
The major performance incentive anticipated for the first year is an award fee for Systems Integration and Management (CLIN 0001). The award fee plan for this CLIN is provided in attachment J-14. Performance metrics for the Systems Integration and Management award fee determination in subsequent years (CLINs 0002-0005) will be based on the Performance Measurement Plan.
The Government proposes the following for consideration following contract award. The Contractor may participate on an incentive oversight team that the Government will establish within 180 days following contract award. Using the Performance Measurement Plan described in H.24, the team will develop a framework to link contractor performance to IDS operational effectiveness and total ownership cost. A corresponding plan for performance, value engineering, and "share-in-savings" incentives may be developed to incentivize superior performance with respect to measurable asset and/or system capability/availability metrics that strongly impact IDS operational effectiveness and total ownership cost.
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