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Award Term (AT)


... to continue a longer business relationship with a contractor. ... develop an Award Term Plan Template which would be acceptable to ... AT Plan Template ... – PowerPoint PPT presentation

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Title: Award Term (AT)

Award Term (AT)
  • September 14, 2007

AT Standardization Team Members
  • Laurie DeClaire, Contracting Officer (CO),
    Institutional Procurement Office
  • Roberta Beckman, Team Lead, Projects Procurement
  • 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
  • Lara Procknow, Contract Specialist, Institutional
    Procurement Office
  • Delene Sedillo, Manager, Projects Procurement
  • Susan Sinclair, Technical, Extravehicular
    Activity (EVA), Robotics, Crew Systems
  • Liz Fountain, Alternate Contracting Officers
    Technical Representative (COTR), Orion Project,
    Constellation Program

Goals of the Presentation
  • Explain how Award Term may be implemented at JSC.
  • Obtain Industry feedback on JSCs approach to
    Award Term.

AT Defined
  • What is Award Term Contracting?
  • A non-monetary incentive that can stand alone or
    be used in combination with other contract
  • A disciplined process used to determine whether
    to continue a longer business relationship with a
  • Contracts with a potential length greater than 5
    years require a request for a deviation from FAR
    17.204(e) NASA FAR Supplement (NFS)
  • 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 contractors
    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

AT Use
JSCs recommended position is to use the AF
guidelines as our approach to AT.
  • From our research, AT has been used on all
    contract types.
  • Cost Plus Incentive Fee (CPIF)
  • Firm Fixed Price (FFP)/Fixed Price Incentive
  • 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,
    JSCs position is to use CPAF during periods not
    subject to an AT evaluation.

Teams 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.

Teams 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

Teams 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//

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

Features of AT Plan (Cont)
  • 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

AT Contract Period of Performance Scenarios
AT Contract Period of Performance Scenarios
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
  • Award Term is preliminary for the first 6 month
    evaluation, final after the second 6 month
  • Added Appendices for Award Fee score conversion
    and Award Fee distribution

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)

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
  • Award Term decision based on two successive
    evaluation periods
  • Unearned AT is lost

Rollout of AT Activities
  • Provide feedback on our proposed approach to Got
    Input at http//
    htm by September 21, 2007
  • Review revise process based on comments
  • Brief Management
  • Final posting of any changes to the following
    website http//

Click here to find Award Term Products
Award Term Products will be located here