Section

[Code of Federal Regulations]
[Title 48, Volume 3]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR216.470]

[Page 111-114]

TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

CHAPTER 2--DEPARTMENT OF DEFENSE

PART 216--TYPES OF CONTRACTS--Table of Contents

Subpart 216.4--Incentive Contracts

Sec. 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
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
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Submarginal Marginal Good Very good Excellent
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A--Time of Delivery............. (A-1) Adherence to Consistently late Late on 10% plans Occasional plan Meets plan Delivers all plans
plan schedule. on 20% of plans. w/o prior late w/o schedule. on schedule &
agreement. justification. meets prod.
change
requirements on
schedule.
(A-2) Action on Does not expose Exposes changes Anticipates Keeps Yard posted Anticipates in
Anticipated changes or but is dilatory changes, advise on delays, good time,
delays. resolve them as in resolution on Shipyard but resolves advises Shipyard,
soon as plans. misses completion independently on resolves
recognized. of design plans plans. independently and
10%. meets production
schedule.

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(A-3) Plan Does not complete System studies Major work plans Design changes Design changes,
Maintenance. interrelated completed but coordinated in from studies and studies resolved
systems studies constr. plan time to meet interrelated and test data
concurrently. changes delayed. production plans issued in issued ahead of
schedules. time to meet production
product schedules. requirements.
B--Quality of Work.............. (B-1) Work 25% dwgs. not 20% not compatible 10% not compatible 0% dwgs. prepared 0% dwgs. presented
Appearance. compatible with with Shipyard with Shipyard by Des. agent not incl. Des. agent,
Shipyard repro. repro. processes repro. processes compatible with vendors,
processes and use. and use. and use. Shipyard repro. subcontr. not
processes and use. compatible with
Shipyard repro.
processes and
use.
(B-2) Thoroughness Is brief on plans Has followed Has followed Work complete with Work of highest
and Accuracy of tending to leave guidance, type guidance, type notes and caliber
Work. questionable and standard dwgs. and standard thorough incorporating all
situations for dwgs. questioning explanations for pertinent data
Shipyard to and resolving anticipated required
resolve. doubtful areas. questionable including related
areas. activities.
(B-3) Engineering Tendency to follow Adequate engrg. to Engineered to Displays excellent Exceptional
Competence. past practice use & adapt satisfy specs., knowledge of knowledge of
with no variation existing designs guidance plans constr. reqmts. Naval shipwork &
to meet reqmts. to suit job on and material considering adaptability to
job in hand. hand for routine provided. systems aspect, work process
work. cost, shop incorporating
capabilities and knowledge of
procurement future planning
problems. in Design.
(B-4) Liaison Indifferent to Satisfactory but Maintains normal Maintains Maintains expert
Effectiveness. requirements of dependent on contact with independent contact, keeping
associated Shipyard to force associated contact with all Yard informed,
activities, resolution of activities associated obtaining info
related systems, problems without depending on activities, from equip.,
and Shipyard constructive Shipyard for keeping them supplies w/o
advice. recommendations problems informed to prompting by
to subcontr. or requiring produce Shipyard.
vendors. military compatible design
resolution. with little
assistance for
Yard.
(B-5) Independence Constant Requires Normal interest Complete & Develops complete
and Initiative. surveillance occasional and desire to accurate job. and accurate
req'd to keep job prodding to stay provide workable Free of plans, seeks out
from slipping-- on schedule & plans with incompatibilities problem areas and
assign to low expects Shipyard average with little or no resolves with
priority to resolution of assistance & direction by assoc. act. ahead
satisfy needs. most problems. direction by Shipyard. of schedule.
Shipyard.
C--Effectiveness in Controlling (C-1) Utilization Planning of work Supervision sets & System planning by Design parameters Mods. to design
and/or Reducing Costs. of Personnel. left to designers reviews goals for supervisory, established by plans limited to
on drafting designers. personnel, system engineers less than 5% as
boards. studies checked & held in design result lack
by engineers. plans. engrg. system
correlation.

[[Page 113]]

(C-2) Control Expenditures not Expenditures Direct charges set Provides services No cost overruns
Direct Charges controlled for reviewed & accounted for as part of normal on original
(Except Labor). services. occasionally by on each work design function estimates absorbs
supervision. package. w/o extra charges. service demands
by Shipyard.
(C-3) Performance Does not meet cost Does not meet cost Exceeds original Exceeds original Never exceeds
to Cost Estimate. estimate for estimate for est. on change est. on change estimates of
original work or original work or orders 10% time orders 5% time. original package
changes 30% time. changes 20% time. and meets or change orders.
original design
costs.
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[[Page 114]]

Table 16-2.--Contractor Performance Evaluation Report
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Category
Category Criteria Rating Item factor Evaluation rating factor Efficiency rating
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A TIME OF DELIVERY...........
A-1 Adherence to Plan ------ x .40 = ------
Schedule.
A-2 Action on Anticipated ------ x .30 = ------
Delays.
A-3 Plan Maintenance....... ------ x .30 = ------
Total Item Weighed .................... .. ........... .. ------ x .30 = ------
Rating.
B QUALITY OF WORK............
B-1 Work Appearance........ ------ x .15 = ------
B-2 Thoroughness and ------ x .30 = ------
Accuracy of Work.
B-3 Engineering Competence. ------ x .20 = ------
B-4 Liaison Effectiveness.. ------ x .15 = ------
B-5 Independence and ------ x .20 = ------
Initiative.
Total Item Weighed .................... .. ........... .. ------ x .40 = ------
Rating.
C EFFECTIVENESS IN
CONTROLLING AND/OR
REDUCING COSTS.
C-1 Utilization of ------ x .30 = ------
Personnel.
C-2 Control of all Direct ------ x .30 = ------
Charges Other than Labor.
C-3 Performance to Cost ------ x .40 = ------
Estimate.
Total Item Weighed .................... .. ........... .. ------ x .30 = ------
Rating.
TOTAL WEIGHED RATING:
Rated by:
Signature(s):--s0
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Ratings--Excellent; Very good; Good; Marginal; Submarginal;
Period of 19
Contract Number
Contractor
Date of Report
PNS Techical Monitor/s
Note: Provide supporting data and/or justification for below average or outstanding item ratings.

[[Page 115]]