PART I THE SCHEDULE SECTION B SUPPLIES OR SERVICES AND

Savannah River Site Operations

Draft Solicitation No.: 89303320REM000076 SECTION B

Section B Page B-1

PART I – THE SCHEDULE

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

TABLE OF CONTENTS

B.1 DOE-B-2012 SUPPLIES / SERVICES BEING PROCURRED / DELIVERY REQUIREMENTS

(OCTOBER 2014)…………………………………………………………………………………….…2

B.2 DOE-B-2001 COST-PLUS-FIXED-FEE CONTRACT LINE ITEM: TOTAL ESTIMATED ........ 2

COST AND FIXED FEE (OCT 2014) (Revised)................................................................................... 2

B.3 DOE-B-2001 COST-PLUS-FIXED-FEE CONTRACT LINE ITEM: TOTAL ESTIMATED

COST AND FIXED FEE ALTERNATE I (OCT 2014) (Revised) ...................................................... 2

B.4 DOE B-2002 COST-PLUS AWARD FEE CONTRACT LINE ITEM; TOTAL ESTIMATED ...... 3

COST AND AWARD FEE (OCT 2014) ................................................................................................ 3

B.5 DOE-B-2003 COST-PLUS INCENTIVE FEE CONTRACT LINE ITEM: TOTAL ....................... 3

ESTIMATED COST AND INCENTIVE FEE (OCT 2014) (Revised) ................................................ 3

B.6 DOE-B-2006 FIRM-FIXED PRICE CONTRACT LINE ITEM (OCT 2014) (Revised) .................. 4

B.7 TRANSITION COST, ANTICIPATED FUNDING, AND TOTAL AVAILABLE AWARD FEE .. 4

B.8 DOE-B-7002 OBLIGATION OF FUNDS AND FINANCIAL LIMITATIONS (SEP 2017) ........... 6

B.9 DOE-B-7003 PERFORMANCE FEE (SEP 2017) ................................................................................ 7

B.10 DOE-B-2014 OPTION TO EXTEND THE TERM OF THE CONTRACT: ESTIMATED ............ 7

COST, FEE AND PERIOD OF PERFORMANCE (OCT 2014) ......................................................... 7

B.11 EXECUTION OF CLINS ........................................................................................................................ 8

B.12 ESTIMATED ANNUAL CONTRACT VALUE ................................................................................... 8

B.13 DOE-H-2060 BASE AND AWARD FEE (OCT 2014) (REVISED) .................................................. 10

B.14 PROVISIONAL PAYMENT OF FEE ................................................................................................. 13

B.15 FEE REDUCTIONS .............................................................................................................................. 14

B.16 ALLOWABILITY OF SUBCONTRACTOR FEE ............................................................................. 15

B.17 CAPITAL CONSTRUCTION PROJECTS FEE PLAN .................................................................... 15



Section B Page B-2

B.1 DOE-B-2012 SUPPLIES / SERVICES BEING PROCURRED / DELIVERY REQUIREMENTS

(OCTOBER 2014)

This is a performance based, Cost-Plus Award Fee (CPAF) contract with discrete Contract Line-Item

Numbers (CLINs) of varying contract types for the management and operation of the Savannah River Site

(SRS). The Contractor shall furnish all personnel, facilities, equipment, material, supplies, and services

(except as may be expressly set for in this contract as furnished by the Government) and otherwise do all

things necessary for, or incident to, the performance of work as described in Section C, Performance Work

Statement. Additionally for the Contract Line Item Number (CLIN) 004 EM (Capital Line Item Projects)

and National Nuclear Security Administration (NNSA) Capital Construction Projects CLIN(s), the

contractor shall do all things necessary for, or incidental to, the efficient, effective, safe, and secure

management and/or performance of Capital Construction Projects (defined in the Section H clause, entitled

“NNSA Construction Projects”) as the Parties may agree. The execution of CLIN 004 and NNSA Capital

Construction Projects CLIN(s) work will be via bilateral contract modification. The terms, conditions, cost

and fee for each sub-CLIN will be determined at the time the sub-CLIN is awarded using one or a

combination of the cost and fee terms in Clauses B.2, B.3, B.4, B.5 B.6, and/or B.7. The cost and fee

associated with each Sub-CLIN established under CLIN 004 and NNSA Capital Construction Projects

CLIN(s) shall form a separate and distinct fee pool from CLINs 001-003 and shall be accounted for and

reported separately from CLINs 001-003.

The Contract Transition Period is the 90-day period beginning with the issuance of the Notice to Proceed

(NTP). The Transition Period is as defined in Section F clause entitled “Period of Performance”.

Payment of fee for the management and operation of SRS, both for the Base Period and Option Period(s),

if exercised (excluding Transition and EM and NNSA Capital Construction Projects) will be made in

accordance with Section B Clause DOE-B-7006 Provisional Payment of Performance Fee and Section J,

Attachment J-21 Performance Evaluation and Management Plan.


COST AND FIXED FEE (OCT 2014) (Revised)

(a) Applicability of this clause is to be determined by the Offeror’s proposal

(b) This is a Cost-Plus-Fixed-Fee type Contract Line Item Number (CLIN). In accordance with the

clause at FAR 52.216-8, Fixed Fee, the total estimated cost and fixed fee for this Contract Line

Item Number (CLIN) are as follows:

Total Estimated Cost [TBD]

Fixed Fee [TBD

(c) The Total Estimated Cost and Fee of the contract, and/or the Total Estimated Cost and Fee of the

Contract Line Items, is as follows:

[TBD, if any, line item nos. and associated amounts for cost and fee]

(d) Payment of fee will be made in accordance with FAR 52.216-8, Fixed Fee.


COST AND FIXED FEE ALTERNATE I (OCT 2014) ((Revised)

(a) Applicability of this clause is to be determined by the Offeror’s proposal.



Section B Page B-3

(b) This is a Cost-Plus-Fixed-Fee type Contract Line Item Number (CLIN). In accordance with the

clause at FAR 52.216-9, Fixed Fee Construction, the total estimated cost and fixed fee for this

Contract Line Item Number (CLIN) are as follows:

Total Estimated Cost [TBD]

Fixed Fee [TBD]

(c) The Total Estimated Cost and Fee of the contract, and/or the Total Estimated Cost and Fee of the



(d) Payment of fee will be made in accordance with FAR 52.216-9, Fixed Fee Construction.

B.4 DOE B-2002 COST-PLUS AWARD FEE CONTRACT LINE ITEM; TOTAL ESTIMATED

COST AND AWARD FEE (OCT 2014)

(a) This is a Cost-Plus-Award-Fee type of Contract Line Item Number (CLIN) unless otherwise

specified. The total estimated cost and award fee are as follows:

Total Estimated Cost: [TBD]

Base fee: [TBD]

Maximum award fee: [TBD]

(b) The Total Estimated Cost and Fee of the contract, and/or the Total Estimated Cost and Fee of the



(c) Payment of fee will be made in accordance with FAR 52.216-7 Allowable Cost and Payment, as

modified by DEAR 952.216-7 Allowable Cost and Payment.

B.5 DOE-B-2003 COST-PLUS INCENTIVE FEE CONTRACT LINE ITEM: TOTAL

ESTIMATED COST AND INCENTIVE FEE (OCT 2014) (Revised)


(b) This is a Cost-Plus-Incentive-Fee type Contract Line Item Number (CLIN). In accordance with

the clause at FAR 52.216-10, Incentive Fee, the target cost, target fee, maximum and minimum

fees, and the target fee increase and decrease ratios for this Contract Line Item Number (CLIN)are

shown below:

Target Cost [TBD]

Target Fee [TBD]

Maximum Fee is 6%

Minimum Fee 0%

Target Fee Increase Ratio: $0.30 Cents/Dollar Less Than Target Cost

Target Fee Decrease Ratio: $0.30 Cents/Dollar More than Target Cost.



Section B Page B-4

(c) The target cost, target fee, minimum and maximum fee, and target fee increase/decrease ratios are

applicable to the following Contract Line Items:

To Be Determined

(d) Payment of fee shall be made in accordance with the clause 52.216-10, Incentive Fee and DOE-

H-2060 Base and Award Fee.

B.6 DOE-B-2006 FIRM-FIXED PRICE CONTRACT LINE ITEM (OCT 2014) (Revised)


B.7 CONTRACT LINE ITEM NUMBER (CLIN) COST AND TOTAL AVAILABLE AWARD FEE

(a) CLIN Types

(1) CLIN 001 Firm Fixed Price (FFP) Transition (Anticipated to be 90 days)

The Contract Transition Period is to be a period beginning with issuance of the Notice to

Proceed (NTP). The Transition Period is as defined in Section F.3. The price for this work will

be fixed and not based on the actual costs. The total estimated price of the transition period is

shown below.

CLIN CLIN Title Estimated Price Total

001 Incoming Contractor

Transition (PWS Section

C.2)

$ [offeror fill-in] $ [offeror fill-in]

(2) CLIN 002 Cost Plus Award Fee (CPAF) EM Closure Activities (Base Period and all

Option Periods)

Work will be completed as described in Section C (Performance Work Statement) Section 3

(except for Section 3.2, which is addressed in CLIN 003). Payment of fee will be made in

accordance with B.13 DOE-H-2060 Base and Award Fee, B.14 Provisional Payment of Fee,

B.15 Fee Reductions, and Section J, Attachment J-21, Performance Evaluation and

Measurement Plan (PEMP).

(3) CLIN 003 Cost Plus Award Fee (CPAF) NNSA Activities (Base Period and all Option

Periods)

Work will be completed as described in Section C (Performance Work Statement) Section 3.2.

Payment of fee will be made in accordance with B.13 DOE-H-2060 Base and Award Fee, B.14

Provisional Payment of Fee, B.15 Fee Reductions, and Section J, Attachment-21, Performance

Evaluation and Measurement Plan (PEMP)

(4) CLIN 004 Environmental Management Capital Construction Projects Contract Type

TBD

(b) This is a firm-fixed-price Contract Line Item Number (CLIN). The Contractor shall provide the

following

[TBD] at the fixed unit prices specified:

(c) Payments of the fixed unit prices and the total contract price will be made in accordance with [TBD]



Section B Page B-5

There are two capital construction projects that are contemplated for completion during the

contract period of performance for Environmental Management (EM).

CLIN 004 AA (Emergency Operations Center Replacement) (PWS Section C.6.1.1) is for the

design and construction of a code compliant emergency management facility in order to

provide response to emergency event scenarios.

CLIN 004 AB (Security Systems Replacement) (PWS Section C.6.1.2) is to replace existing

E3S security systems with the DOE Standard Argus System at the following areas: K-Area, L-

Area, and the remaining portion of the Savannah River National Laboratory (SRNL) and

general site areas.

(5) CLIN 005 NNSA Capital Construction Projects Contract Type TBD

The cost and fee associated with awarding CLIN 005 and Sub-CLIN(s) shall be accounted for

and reported separately and be completely severable from all other parts of this contract.

The contract types and values under CLIN 005 shall be established as each Sub-CLIN is

awarded under CLIN 005.

There are two NNSA capital construction projects under CLIN 005 that are contemplated for

execution during the contract period of performance: Tritium Finishing Facility Project and

the Surplus Plutonium Disposition Project. This list is not all inclusive and other projects

may be identified during contract performance.

CLIN 005 AA - Tritium Finishing Facility (TFF) (PWS Section 6.2.2) Cost-Reimbursable Type

Contract TBD: The Contractor will be the project Design Authority and shall support overall

project integration activities. There is an option for the Contractor to provide Title II and Title

III engineering, construction management, procurement, construction, startup, and testing

activities for the TFF Project. At the conclusion of the TFF project, the Contractor will operate

and maintain the TFF buildings.

CLIN 005 AB- Surplus Plutonium Disposition (SPD) (PWS Section 6.2.3) Cost-Reimbursable

Type Contract TBD: The Contractor will support design, procurement, construction and start-

up of down blending glovebox process lines and associated support infrastructure in K-Area

facility.

Payment of Fee for NNSA Capital Construction Projects CLIN(s) and sub-CLIN(s):

Cost/Price and cost/price structure (such as Firm Fixed Price, Cost-Plus-Incentive-Fee, or other

price structures as agreed) and any applicable special terms and conditions shall be identified

for each NNSA Capital Construction Project covered by each Sub-CLIN to any NNSA Capital

Construction CLIN(s).

Firm Fixed Price Sub-CLIN(s): The Contractor may draw down on the special financial

institution account (i.e. “Letter of Credit”) for allowable costs in accordance with DEAR clause

970.5232-2 (Payments and Advances (DEC 2000) Alternate II (DEC 2000) Alternate III (DEC

2000) (NNSA Class Deviation OCT 2011)) as costs are incurred up to the total FFP established

for the completion of a FFP Sub-CLIN. In the event that incurred costs (plus Fee, if applicable)

are less than the total FFP at project completion, the Contractor may drawdown the remaining

funds up to the total FFP. In the event that the incurred costs (plus Fee, if applicable) exceed

the total FFP, the Contractor shall use its own funds for the remaining costs of the project, and

the Contractor shall not be authorized to draw down amounts which exceed the FFP. If the

Contractor draws down amounts exceeding the FFP, it shall repay DOE/NNSA those amounts

within 30 calendar days of receipt of notification from NNSA or within 30 calendar days of the



Section B Page B-6

Contractor’s discovery of the overpayment (whichever is sooner). If the overpayment is not

reimbursed to DOE/NNSA within 30 calendar days, the overpayment shall be subject to

collection in accordance with FAR Subpart 32.6.

(6) CLIN 006 NNSA Capital Construction Project - Savannah River Plutonium Processing

Facility (SRPPF) (PWS Section 6.2.1) Cost-Reimbursable Type Contract TBD: The

Contractor shall support overall project integration and production of the SRPPF conceptual

design. There is an option for the Contractor to provide Title II and Title III engineering,

construction management, procurement, construction, startup and testing activities for some or

all of the subprojects. At the conclusion of the SRPPF project, the Contractor will operate and

maintain all SRPPF administrative, process, and balance of plant support facilities.

The cost and fee associated with awarding CLIN 006 and Sub-CLIN(s) shall be accounted for

and reported separately and be completely severable from all other parts of this contract.

Although CLIN 006 will be awarded as Cost-Reimbursable Type Contract TBD, the contract

types and values under CLIN 006 Sub-CLIN(s) shall be established as each Sub-CLIN is

awarded under CLIN 006.

(b) Total Estimated Cost for All CLINs

The Total Estimated Cost and Fee (as applicable) for each CLIN, the Total Estimated Cost and Fee

(as applicable) for each contract period, and the cumulative Total Estimated Cost and Fee for the

Contract are as follows:

See Table B.12-1 and Table B.12-2 Estimated Annual Contract Value

(1) Available Award Fee is defined as the amount of award fee that may be earned under the

Contract for each applicable CLIN. The Total Available Award Fee shall not exceed 3.0 percent

of the Annual Fee Base for each applicable performance period.

(2) Available Award Fee will include Award-Fee Criteria and Performance-Based Incentive

(PBIs) Criteria for EM funded work as defined in B.13, DOE-H-2060, Base and Award Fee.

PBIs for EM funded work will be defined during contract performance as part of the

Performance Evaluation and Measurement Plan (PEMP). NNSA will establish a separate

PEMP and fee determination process for CLIN 003 and NNSA funded work which may not

include PBIs. In addition, no base fee for NNSA funded work is payable under this Contract.

(3) Available Award Fee is made up of subjective award-fee criteria and PBIs for EM funded work.

For NNSA funded work that is subject to an award fee plan, the available award fee is made

up of 100% award fee criteria.

(4) Award Fee based upon award-fee criteria will be evaluated on an annual basis as delineated in

the PEMP. The PBI fee for EM funded work will be evaluated in accordance with the

established completion criteria in the PEMP.

(5) The fee/pricing structures and associated terms and conditions established under CLIN 004

(EM Capital Construction Projects) and NNSA Capital Construction Projects CLIN(s) or Sub-

CLIN(s) will be determined at the time of award for the CLIN / individual Sub-CLIN(s).

B.8 DOE-B-7002 OBLIGATION OF FUNDS AND FINANCIAL LIMITATIONS (SEP 2017)

The amount presently obligated by the Government with respect to this contract is specified in the Section

I Clause entitled “DEAR 970.5232-4 – Obligation of Funds”. Other financial limitations are also specified



Section B Page B-7

in the Section I Clause entitled “DEAR 970.5232-4 – Obligation of Funds.”

B.9 DOE-B-7003 PERFORMANCE FEE (SEP 2017)

(a) The transition activities shall be performed on a firm fixed price basis up to the amount specified

in the Section H Clause entitled “Activities during Contract Transition”.

(b) In implementation of the Section I Clause entitled “DEAR 970.5215-1 – Total Available Fee: Base

Fee Amount and Performance Fee Amount”, the Parties have agreed that the total available

performance fee that may be earned by the Contractor in each performance period in accordance

with the provisions of Section J, Attachment J-21, Performance Evaluation and Measurement Plan

(PEMP)”, for the performance of the work under this contract as follows:

Base Contract Period: See Table B.12-1 (Estimated Annual Contract Value).

Base fee under this contract is $0. All fee dollars shall be in performance fee and at risk.

(c) At the end of each fiscal year, there shall be no adjustment in the amount of the maximum available

performance fee based on differences between any estimate of cost for performance of the work

and the actual cost for performance of the work. Fee is subject to adjustment only –

(1) Under the provisions of Section I Clause entitled “DEAR 970.5243-1 – Changes”, or other

Contract provisions; or

(2) For a +/- 10 percent change in the estimated fee base of $[TBD].

(d) Any adjustment in the amount of the total available performance fees under the provisions of

paragraph (c) for the fees specified in paragraph (b) above, or negotiation of fee under paragraph

(d) above, will be in accordance with the DOE fee policy set forth is DEAR 970.1504-1-1 and

DEAR 970.1504-1-3 , utilizing the adjusted estimated fee base and maintaining the same fee ratio

proposed (i.e., proposed vs. maximum) by the Contractor during the contract competition and

reflected in the current contract.

(e) Any adjustment in the fee base from either Environmental Management (EM) or the National

Nuclear Security Administration (NNSA) will not affect the fee base of the other organization.

B.10 DOE-B-2014 OPTION TO EXTEND THE TERM OF THE CONTRACT: ESTIMATED

COST, FEE AND PERIOD OF PERFORMANCE (OCT 2014)

(a) In accordance with the clause at FAR 52.217-9, Option to Extend the Term of the Contract, the

Government may unilaterally extend the contract period of performance (as set forth in Section F,

Deliveries or Performance) to require the Contractor to perform the work set out by Section C,

Performance Work Statement of the contract. In the event that the Government elects to exercise

its unilateral right to extend the term of the contract pursuant to this clause and FAR 52.217-9, all

terms and conditions of the contract will remain in full force and effect.

(b) The Contracting Officer will consider factors set forth in FAR 17.207, Exercise of Options, in

determining whether to exercise an option to extend the term of the contract. The Government is

concerned with ensuring that the Contractor’s performance meets, or exceeds, the performance

requirements of the contract in a cost-effective manner. Accordingly, the Contracting Officer will

consider the Contractor’s performance as part of the determination to exercise any option to extend

the contract term.

(c) The Estimated Cost and Fee of each option are set forth in B.7, TRANSITION COST,



Section B Page B-8

ANTICIPATED FUNDING, AND TOTAL AVAILABLE AWARD FEE. The associated Period of

Performance of each option are set forth in Section F Clause entitled DOE-F-2003, Period of

Performance (Oct 2014).

B.11 EXECUTION OF CLINS

Upon the Notice to Proceed, the Transition CLIN (001) will be executed. Upon completion of Contract

Transition, the Cost-Plus Award Fee CLINs for Base Period of Performance (sub-CLIN AA) for CLINs

002 (EM Closure Activities) and 003 (NNSA Activities) will be executed.

The Cost-Plus Award Fee CLIN for the Option Period 1 (sub-CLIN AB) for CLINs 002 and 003 will be

executed if these options are exercised in accordance with FAR 52.217-9, Option to Extend the Term of

the Contract.

The Cost-Plus Award Fee CLIN for the Option Period 2 (sub-CLIN AC) for CLINs 002 and 003 will be


the Contract.

The Cost-Plus Award Fee CLIN for the Option Period 3 (sub-CLIN AD) for CLINs 002 and 003 will be


the Contract.

The Cost-Plus Award Fee CLIN for the Option Period 4 (sub-CLIN AE) for CLINs 002 and 003 will be


the Contract.

The Cost-Plus Award Fee CLIN for the Option Period 5 (sub-CLIN AF) for CLINs 002 and 003 will be


the Contract.

CLIN 004 (Environmental Management Capital Projects) and CLINs 005 and 006 National Nuclear

Security Administration Capital Projects CLIN(s) shall be included when necessary.

B.12 ESTIMATED ANNUAL CONTRACT VALUE

DOE expects to obligate funding to the Contract in accordance with the estimated annual Contract value as

shown below:

Table B.12-1 Estimated Annual Contract Value - Operations and Pension

Anticipated Funding* Annual Fee Base

Gov’t

Fiscal

Year

Transition

CLIN 001

Operations

CLIN 002

(EM)

Operation

CLIN 003

(NNSA)

Operations

CLIN 002

(EM)

Operation

CLIN 003

(NNSA)

Transition Period

FY22

(Transition) TBD N/A N/A N/A N/A

Base Period

FY23 N/A TBD TBD TBD TBD




Section B Page B-9




Base

Period

Total

N/A TBD TBD TBD TBD

Option Period 1


Option

Period 1

Total

N/A TBD TBD TBD TBD

Option Period 2


Option

Period 2

Total

N/A TBD TBD TBD TBD

Option Period 3


Option

Period 3

Total

N/A TBD TBD TBD TBD

Option Period 4


Option

Period 4

Total

N/A TBD TBD TBD TBD

Option Period 5


Option

Period 5

Total

N/A TBD TBD TBD TBD

Contract

Total TBD TBD TBD TBD TBD

Table B.12-2 Estimated Annual Contract Value - Capital Projects

ANTICPATED FUNDING* ANNUAL FEE BASE

Capital

Projects

CLIN 004

(EM)

Capital

Projects

CLIN 005

(NNSA)

Capital

Projects

CLIN 006

(NNSA –

SRPPF)

Capital

Projects

CLIN 004

(EM)

Capital

Projects

CLIN 005

(NNSA)

Capital

Projects

CLIN 006

(NNSA-

SRPPF)

Gov’t

Fiscal

Year

Transition Period

FY22

(Transition) N/A N/A N/A N/A N/A N/A

Base Period

FY23 N/A N/A N/A TBD TBD TBD



Section B Page B-10





Base Period

Total TBD TBD TBD TBD TBD TBD

Option Period 1


Option Period

1 Total N/A N/A N/A TBD TBD TBD

Option Period 2


Option Period


Option Period 3


Option Period


Option Period 4


Option Period


Option Period 5


Option Period


Contract Total N/A TBD TBD TBD TBD TBD

*The above is anticipated funding only and is subject to the appropriations of Congress. It is not a guarantee

that the funding will be provided or obligated in the amounts stated. Anticipated funding includes total

estimated cost and total available award fee.

B.13 DOE-H-2060 BASE AND AWARD FEE (OCT 2014) (REVISED)

(a) The Government shall pay the Contractor for performing this contract, the base fee, if any, and any

award-fee that may be earned from the available award-fee, specified in Section B in accordance

with this clause and other applicable clauses of the contract.

(b) Base Fee Payment. The base fee, if any, shall be payable on a schedule specified in another clause

of this contract or as determined by the Contracting Officer and subject to the following provisions.

The Contracting Officer shall withhold a reserve not to exceed 15 percent of the total base fee or

$100,000, whichever is less, to protect the Government’s interest.

(c) Award-fee (CLIN 002).

1) Performance Evaluation and Measurement Plan (PEMP).



Section B Page B-11

(a) A PEMP will be developed by the Government for this Contract, which will document

strategic performance expectations each year and the process by which the Contractor’s

performance will be evaluated. The Parties will strive to reach mutual agreement 90 days

prior to the end of the current performance period on the performance measures and will

work together to establish the PEMP. In the event the parties cannot come to agreement,

the Government reserves the right to make the final decision and issue the PEMP

unilaterally. The PEMP once finalized, whether bilaterally or unilaterally, will be

incorporated into the Contract at Section J, Attachment J-21, by contract modification. The

Contracting Officer may revise the PEMP bilaterally or unilaterally during an evaluation

period of performance and will incorporate any revisions through a contract modification.

No changes will be made with less than 60 days remaining in the evaluation period. The

Contractor will submit a self-assessment for each corresponding interim and final

evaluation period under the PEMP. The PEMP will establish the criteria and procedures

the Fee Determining Official (FDO) will use to evaluate the Contractor’s performance and

determine the appropriate award-fee earned. The PEMP shall include, as a minimum, the

following:

i) Evaluation criteria linked to the contract’s performance objectives as defined in terms

of cost, schedule, technical, or other contract performance requirements or objectives;

ii) Means of how the Contractor’s performance will be measured against the evaluation

criteria;

iii) Award-fee evaluation period;

iv) Amount of the total available award-fee that is allocated to the evaluation period,

including the allocation for award-fee criteria and performance-based incentive

criteria; and

v) Methodology for application of subjective evaluation ratings or attainment of

predetermined objectives to earned fee.

(b) There are two categories of evaluation criteria that may be used in determining award-fee

earned: award-fee criteria and performance-based incentive criteria. Each of these

categories, in general, is defined as follows:

Award-fee Criteria– Evaluation criteria that are qualitative or subjective for which it is

neither feasible nor effective to devise pre-determined objective criteria applicable to cost,

schedule, technical or other contract performance requirements or objectives. These types

of criteria require a judgmental evaluation process and allow the Government the flexibility

to evaluate both actual performance and the conditions under which it was achieved.

Performance-Based Incentive Criteria (Applicable to EM funded work only) – Evaluation

criteria which can be defined by predetermined, objective incentive criteria applicable to

cost, schedule, technical or other contract performance requirements or objectives.

Performance measurement standards contain well-defined parameters for measuring

performance against evaluation criteria. These criteria may extend beyond one evaluation

period when appropriate to incentivize the completion of long-term objectives.

i) The length of evaluation periods shall be determined unilaterally by the Contracting

Officer. The evaluation periods should provide a balance between the Contractor’s

ability to have sufficient performance time for the Government to evaluate. Evaluation

periods shall provide the ability for the Government to provide timely evaluations on

the Contractor’s performance without being administratively burdensome.



Section B Page B-12

ii) The PEMP shall be provided to the Contractor 14 calendar days prior to the beginning

of the first and each successive evaluation period. If there is not sufficient time for the

PEMP to be provided to the Contractor in the required number of days in advance of

the beginning of the evaluation period, the Contractor shall not be evaluated on its

performance until 14 calendar days after the PEMP is received by the Contractor. The

PEMP may be revised unilaterally at any time during the evaluation period; but the

revised PEMP, or revised portion thereof, shall not be effective until 14 calendar days

after the Contractor receives the revised PEMP.

(c) Evaluation of EM Capital Construction Projects under CLIN 0004 and NNSA Capital

Construction CLIN(s) under CLINs 005 and 006 will be evaluated independent of the

PEMP.

1) Performance Evaluation and Fee Determination.

a) Monitoring Performance. During the evaluation period, performance monitors will track

the Contractor’s performance in accordance with the PEMP. Interim evaluations shall be

provided to the Contractor to identify strengths, weaknesses, and deficiencies in the

Contractor's performance during the current evaluation period. At the end of an evaluation

period, performance monitors will assess the Contractor's performance in accordance with

the PEMP and report the results to the Award-Fee Board (AFB).

b) Contractor Self-Assessment. Following each evaluation period, the Contractor shall provide

a written self-assessment of its performance to the AFB to be considered in its report to the

Fee Determining Official (FDO). The self-assessment shall be submitted not later than 10

calendar days after the end of each evaluation period. The self-assessment shall address

strengths, weaknesses, and deficiencies in the Contractor's performance during the

evaluation period. Where deficiencies in performance are noted, the Contractor should

describe the actions planned or taken to correct such deficiencies to avoid their recurrence.

c) Award-fee Board Recommendation. The AFB (as defined in the PEMP) will consider the

performance monitors' reports and any other pertinent information, including the

Contractor’s self- assessment, and prepare a report for the FDO with findings and

recommendations. The AFB's draft report is not subject to negotiation with the Contractor.

The Contractor will be provided a copy of the final AFB report immediately after the report

is finalized.

d) Award-fee Determination. The FDO will review the AFB’s recommendation, the

Contractor’s self-assessment and other pertinent information related to the Contractor’s

performance. The FDO will make a final, written determination, consistent with the PEMP,

as to the amount of the award-fee earned. The FDO’s final determination should be

provided to the Contractor no later than 90 calendar days after the end of the evaluation

period. The FDO, AFB representative, or Contracting Officer will provide a debriefing to

the Contractor on the final determination. All FDO decisions regarding award-fee are made

solely at the discretion of the Government, including but not limited to, the characterization

of the Contractor's performance, amount of earned fee, if any, and the methodology used

to calculate the earned fee.

2) Unsatisfactory Performance. No award-fee shall be earned if the Contractor’s overall

performance in the aggregate is below satisfactory.

3) Unearned Award-fee. Any unearned award-fee, for which the Contractor had the opportunity



Section B Page B-13

to earn during an evaluation period, shall not be transferred to subsequent evaluation periods.

4) Award-fee Payment. After the FDO’s award-fee determination, the Contracting Officer will

issue a unilateral modification to the contract setting forth the amount of earned fee. Payment

will be made after the modification has been issued and consistent with other clauses of this

contract related to payments. The PEMP may provide for the payment of earned fee for

performance-based incentives completed prior to the end of the evaluation period or provisional

payments of earned fee based on established progress in meeting performance-based incentives

extending beyond an individual evaluation period.

(d) Award-fee (CLIN 003). A Performance Evaluation and Measurement Plan (PEMP) will be

developed by NNSA for this Contract for CLIN 003, which will document strategic performance

expectations each year and the process by which the Contractor’s performance will be evaluated.

The PEMP may also include key outcomes related to the Contractors performance in managing the

interfaces between multiple organizations and the SRPPF project, as documented in an Interface

Control Document. The Parties will strive to reach mutual agreement on the performance measures

and will work together to establish the PEMP. In the event the parties cannot come to agreement,

NNSA reserves the right to make the final decision and issue the PEMP unilaterally. The PEMP

once finalized, whether bilaterally or unilaterally, will be incorporated into the Contract by contract

modification. The Contracting Officer may revise the PEMP bilaterally or unilaterally during an

evaluation period of performance and will incorporate any revisions through a contract modification.

No changes will be made with less than 60 days remaining in the evaluation period. The Contractor

will submit a self-assessment for each corresponding interim and final evaluation period under the

PEMP. NNSA’s evaluation of Capital Construction Projects under CLINs 005 - 006 will be

evaluated independent of the PEMP

B.14 PROVISIONAL PAYMENT OF FEE

(a) Notwithstanding any other term or condition of this contract to the contrary, this clause applies to

and has precedence over all other terms and conditions of this contract that provide for provisional

payment of fee.

(b) The Contractor must notify the Contracting Officer immediately if it believes any incongruence

exists between this clause and any other term or condition of this contract that provides for

provisional payment of fee. If a term or condition of this contract provides for provisional payment

of fee but fails to include all of the requirements of this clause, that term or condition will be

considered to include the omitted requirements.

(c) This clause conforms to the Federal Acquisition Regulations and Department of Energy fee policy

and constructs. The following definitions and concepts apply.

(1) Price means cost plus any fee or profit applicable to the contract.

(2) The terms profit and fee are synonymous.

(3) Incentive means a term or condition whose purpose is to motivate the Contractor to provide

supplies or services at lower costs, and in certain instances with improved delivery or technical

performance, by relating the amount of profit or fee earned to the Contractor’s performance.

(4) Earned fee for an incentive means fee due the Contractor by virtue of its meeting the contract’s

requirements entitling it to fee. Earned fee does not occur until the Contractor has met all

conditions stated in the contract for earning fee.



Section B Page B-14

(5) Available fee for an incentive means the fee the Contractor might earn but has not yet earned.

(6) Provisional payment of fee for an incentive means the Government’s paying available fee for

an incentive to the Contractor for making progress towards meeting the performance measures

for the incentive before the Contractor has earned the available fee.

(7) Provisional payment of fee has no implications for the Government’s eventual determination

that the Contractor has or has not earned the associated available fee. Provisional payment of

fee is a separate and distinct concept from earned fee. The Contractor could, for example,

receive 100% of possible provisional fee payments yet not earn any fee (the Contractor would

be required to return all of the provisional fee payments). The Contractor could receive 0% of

possible provisional fee payments yet earn the entire amount of available fee (it would not

receive any fee payments until the Government’s determination that the Contractor had earned

the associated available fee for the incentive).

(8) Clause means a term or condition used in this contract.

(d) This contract’s price, incentives included in its price, and all other terms and conditions reflect the

Government’s and the Contractor’s agreement to link, to the maximum extent practical, the

Contractor’s earning of fee to its achievement of final outcomes rather than interim

accomplishments.

(e) Certain terms and conditions of this contract provide for provisional payment of fee for certain

incentives. Other terms and conditions of this contract provide for each such incentive the

requirements the Contractor must meet to earn the fee linked to the incentive. The terms and

conditions of this contract that provide for provisional payment of fee for certain incentives include

for each such incentive the requirements the Contractor must meet before the Government is

obligated to pay fee, provisionally, to the Contractor and for the Contractor to have any right to

retain the provisionally paid fee.

(f) The Contracting Officer, at his/her sole discretion, will determine if the Contractor has met the

requirements under which the Government will be obligated to pay fee, provisionally, to the

Contractor and for the Contractor to have any right to retain the provisionally paid fee.

(g) If the Contracting Officer determines the Contractor has not met the requirements to retain any

provisionally paid fee and notifies the Contractor, the Contractor must return that provisionally

paid fee to the Government within 30 days: (i) the Contactor’s obligation to return the provisional

paid fee is independent of its intent to dispute or its disputing the Contracting Officer’s

determination; and (ii) if the Contractor fails to return the provisionally paid fee within 30 days of

the Contracting Officer’s determination, the Government, in addition to all other rights that accrue

to the Government and all other consequences for the Contractor due to the Contractor’s failure, may deduct the amount of the provisionally paid fee from: amounts it owes under invoices; amounts

it would otherwise authorize the Contractor to draw down under a Letter of Credit; or any other

amount it owes the Contractor for payment, financing, or other obligation.

(h) If the Contractor has earned fee associated with an incentive in an amount greater than the

provisional fee the Government paid to the Contractor for the incentive, the Contractor will be

entitled to retain the provisional fee and the Government will pay it the difference between the

earned fee and the provisional fee.

B.15 FEE REDUCTIONS

(a) All annual earned fee in each year of Contract performance is subject to reductions imposed by the

terms and conditions of this Contract, including, but not limited to:



Section B Page B-15

(1) Section B Clause B.13, DOE-H-2060, Base and Award Fee;

(2) Section E Clause entitled, FAR 52.246-3, Inspection of Supplies – Cost Reimbursement;

(3) Section E Clause entitled, FAR 52.246-5, Inspection of Services – Cost Reimbursement;

(4) Section H Clause H.40, DOE-H-2070 Key Personnel Alternate I;

(5) Section I Clause, DEAR 970.5215-3, Conditional Payment of Fee, Profit, and other Incentives

– Facility Management Contracts;

(6) Section I Clause, FAR 52.203-10, Price or Fee Adjustment for Illegal or Improper Activity;

(7) Section I Clause, FAR 52.215-11, Price Reduction for Defective Cost or Pricing Data –

Modifications;

(8) Section I Clause, FAR 52.215-13, Subcontractor Certified Cost or Pricing Data –

Modifications;

(9) Section I Clause, FAR 52.219-16, Liquidated Damages – Subcontracting Plan; and

(b) The maximum fee reduction in any, one-year period of Contract performance is the allocated

Annual Award Fee, as defined in the PEMP that can be earned in the one-year period the event

occurred. Fee for CLIN 004 (EM Capital Construction Projects) and CLIN 005 (NNSA Capital

Construction Projects) will be addressed separately as part of the applicable Capital Construction

Fee Plan.

B.16 ALLOWABILITY OF SUBCONTRACTOR FEE

(a) If the Contractor is part of a teaming arrangement as described in FAR 9.601(1), Contractor Team

Arrangements, the team shall share in the Total Available Fee as shown above in Tables B.12-1

and B.12-2. Separate, additional teaming subcontractor fee is not an allowable cost under this

Contract for individual team members, or for a subcontractor, supplier, or lower-tier subcontractor

that is a wholly owned, majority-owned, or affiliate of any team member.

(b) The subcontractor fee restriction in paragraph (a) does not apply to members of the Contractor’s

team that are: (1) small business(es); (2) Protégé firms as part of an approved Mentor-Protégé

relationship as identified in the Contractor’s Diversity Plan as per the Section H clause, DOE-H-

2046, entitled, Diversity Program; (3) subcontractors under a competitively awarded firm-fixed

price or firm-fixed unit price subcontract; or (4) subcontractors providing commercial items as

defined in FAR 2.101, Definitions, if the subcontract price is fair and reasonable.

B.17 CAPITAL CONSTRUCTION PROJECTS FEE PLAN

A Capital Project Fee Plan will be developed, when applicable, with Contractor input, for each Sub-CLIN

awarded under CLIN 004 (EM Capital Construction Projects) and for CLINs 005 and 006 NNSA Capital

Construction Projects CLIN(s) and Sub-CLIN(s) awarded under any NNSA Capital Construction CLIN

and incorporated at Section J, Attachment J-23, NNSA Capital Construction Fee Plan.

Although the detail and content incorporated into each Fee Plan may vary based on the cost and fee structure

agreed upon for a given Sub-CLIN, each Sub-CLIN Fee Plan shall document the process by which the

Contractor’s performance will be evaluated; the amount of available fee and (when applicable) the

allocation of fee to mutually agreeable project cost and/or schedule milestones; the conditions precedent to

the submission of fee payment requests by the Contractor; the Government’s fee determination process;

and any provisions or conditions that would result in an adjustment to otherwise earned fee. The parties



Section B Page B-16

will work collaboratively to establish mutually acceptable Fee Plans and, in the event the Parties cannot

come to agreement on the Fee Plan for any CLIN, Sub-CLIN, DOE-SR or NNSA reserves the unilateral

right to make the final decision, including changes thereto, on all performance objectives, goals, and

measures and the methodology used to evaluate Contractor performance. Sub-CLIN fee plans are not

subject to the fee determination process or other terms and conditions of Section B Clause B.13, DOE-H-

2060, Base and Award Fee. All negotiated fee associated with line item projects shall be provisional until

approval of CD-4, subject to the CO Final Fee Determination and Contract modification.

Documents

PART I THE SCHEDULE SECTION B SUPPLIES OR SERVICES AND