TANK WASTE REMEDIATION SYSTEM

TWR 1: Reduce mortgage costs and conduct Tank Farms Safe Operations.

0.0% at Objective Level

TWR 1.1: Provide basis for Tank Farms Safe Operation

0.6% at Measure Level

TWR 1.1.1: Submit technical documentation for use in closing the Condensed Phase Organic Nitrate Unreviewed Safety Question (USQ), resolution of the Organic Complexant Safety Issue, completion of the DNFSB 93-5 Commitment (5.4.3.3.b) and as the basis for removing tanks from the Organic Watch List, by August 17, 1998. (Short Title: USQ Organic Resolution)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

3.0% at Expectation Level

N/A

N/A

TWR 1.1.2: Provide a Technical Report on flammable gas vapor space data from flammable gas tanks by September 30, 1998. (Short Title: Vapor Space Data)

70 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.0% at Expectation Level

100 percent of the incentive fee for this PA can be earned by the Contractor if the Performance Expectation is met and the technical report contains Standard Hydrogen Monitoring System (SHMS) data for a minimum of 7,950 data days for the period of October 1, 1997, through June 30, 1998.

-40 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 30, 1998.

TWR 1.1.3: Flammable Gas Safety Issue Resolution; Provide Contractor-approved documents on Refined Safety Analysis Methodology and Double-Shell Tank (DST) Flammable Gas Expert Panel Results by July 15, 1998.

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.4% at Expectation Level

N/A

-40 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by August 7, 1998.

TWR 1.1.4: Complete enhancements to gas sampling capability for Tank Farm Operations for flammable gas tanks by July 15, 1998. (Short Title: Gas Sampling for Flammable Gas)

70 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.8% at Expectation Level

100 percent of the incentive fee available for this PA can be earned by the Contractor if the Performance Expectation is completed by May 31, 1998.

-40 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by September 1, 1998.

TWR 1.1.5: Complete installation and testing for signal acquisition of 21 Tank Monitor and Control System (TMACS) connections by September 30, 1998. (Short Title: TMACS connections)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.25% at Expectation Level

N/A

-40 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 30, 1998.

TWR 1.2: Conduct Tank Farm Safe Operations.

0.0% at Measure Level

TWR 1.2.1: Prepare an Authorization Basis (AB) status report on TWRS facilities including a plan for recommended AB modifications by May 1, 1998. (Short Title: Authorization Basis)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.24% at Expectation Level

N/A

-25 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by June 1, 1998.

TWR 1.2.2: Submit completed modifications and a plan for future modifications to the TWRS Basis for Interim Operations and Technical Safety Requirements to incorporate specified Authorization Basis elements by September 30, 1998. (Short Title: Modifications to BIO and TSRs)

60 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.23% at Expectation Level

100 percent of the incentive fee for this PA can be earned by the Contractor if Performance Expectation is completed by August 31, 1998.

N/A

TWR 1.2.4: Complete Contractor Post Transition Window (Window 3) actions required to close the Integrated Basis for Interim Operation (BIO) Transition Items and Conditions by December 29, 1997, as identified in DOE/RL-97-72 and precisely specified in the integrated list of items, Revision 1, dated October 28, 1997. (Short Title: BIO Window 3 actions)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.7% at Expectation Level

N/A

-40 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by January 30, 1998.

TWR 1.2.7: Complete sampling and laboratory analysis, and/or technical justification to close Defense Nuclear Facilities Safety Board (DNFSB) Recommendation 93-5 Implementation Plan by agreed upon dates specified in Section 5. (Short Title: DNFSB 93-5)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.01% at Expectation Level

N/A

-40 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 30, 1998.

TWR 1.2.8: Complete sampling, analysis, and reporting activities as requested by Safety Issue Resolution (SIR) by July 15, 1998, to support closure of the organic complexant Unreviewed Safety Question (USQ). (Short Title: Characterize for Organics)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.5% at Expectation Level

N/A

N/A

TWR 1.2.9: By September 30, 1998, obtain, extract, and deliver retained gas samples (for tanks AX-101 [DNFSB 93-5 High Priority Tank], S-102, SX-106, and a fourth tank to be determined [TBD]) to support closure of the flammable gas USQ. (Short Title: Characterize for Flammable Gas)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.5% at Expectation Level

N/A

N/A

TWR 1.2.11: Complete electrical circuit verification and release Electrical Distribution System (EDS) drawings for 10 tank farms, and install labels/release drawings for AN, SY and T tank farms and incorporate backlog Engineering Change Notices for essential drawings by September 30, 1998. (Short Title: Drawing and Labeling)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.75% at Expectation Level

N/A

-60 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 30, 1998.

TWR 1.2.12: Perform Equipment Installation and saltwell pumping preparatory tasks on one Single Shell tank (241-SX-106) by September 30, 1998. (Short Title: SST Interim Stabilization)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.1% at Expectation Level

N/A

N/A

TWR 1.2.13: Perform ultrasonic examination of one double-shell tank by September 30, 1998. (Short Title: Ultrasonic Examination)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.55% at Expectation Level

N/A

-100 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 30, 1998.

TWR 1.2.15: Complete grab and vapor sampling by the product due dates below:

Major Deliverables, Milestone #, Product Due Dates

10 Vapor Samples, T01-98-115, February 2, 1998

30 Grab Samples, T01-98-116, September 30, 1998

0.8% at Expectation Level

N/A

N/A

TWR 1.2.16: Complete Tank Characterization Reports (TCRs) and the Waste Information Requirements Document (WIRD) by the product due dates below:

Major Deliverables, Milestone #, Product Due Dates:

WIRD, T01-98-101, August 31, 1998

16 TCRs, T01-98-122, September 30, 1998

10 Revised TCRs, T01-98-171, September 30, 1998

0.7% at Expectation Level

N/A

-40 percent of the incentive fee available for this PA will be assessed against the contractor for failure to meet the Performance Expectations by the individual product due dates specified in the Performance Expectation.

TWR 1.2.17: Provide tank waste information to the TWRS projects by the product due dates below:

Major Deliverables, Milestone #, Product Due Dates:

Best Basis Inventory, T01-98-153, September 30, 1998

Tank-by-Tank Safety Evaluation, T01-98-136, April 30, 1998

Issue Deliverables, T01-98-169, September 30, 1998

0.7% at Expectation Level

N/A

-40 percent of the incentive fee available for this PA will be assessed against the contractor for failure to meet the Performance Expectation for T01-98-136 by May 22, 1998, or T01-98-169 by September 30, 1998. There are no penalties applied to T0-98-153 and T0-98-169.

TWR 1.3: Reduce Tank Farm mortgage

0.0% at Measure Level

TWR 1.3.2: Replace the Compensatory Measures for Basis for Interim Operations (BIO) Authorization Basis (AB) Controls by September 30, 1998, or sumbit to RL an Engineering Change Notice requesting appropirate Technical Safety Requirements (TSR) changes by August 31, 1998. (Short Title: Replace Compensatory Measures)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.1% at Expectation Level

N/A

-100 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 30, 1998.

TWR 1.4: Implement TWRS Integrated Safety Management System (ISMS)

0.0% at Measure Level

TWR 1.4.2: Complete the FY 1998 Project Hanford initiatives of the Radiological Controls Improvement Program (RCIP) by September 30, 1998. (Short Title: Radiological Controls Program)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.25% at Expectation Level

N/A

-25 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 23, 1998.

TWR 1.4.3: Submit letter reports for TWRS Integrated Safety Management System (ISMS) Gap Analysis by March 2, 1998, and declaration of documentation readiness for RL Phase I Verification by August 31, 1998. (Short Title: ISMS)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.17% at Expectation Level

N/A

-25 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by September 14, 1998.

TWR 2: Stage for Low Activity Waste pretreatment and immobilization

0.0% at Objective Level

TWR 2.1: Provide Tank Waste Retrieval Systems for Initial Waste Feed Staging Tanks

0.0% at Measure Level

TWR 2.1.1: Complete Project W-211, Initial Tank Retrieval Systems, Title II design for Tanks 102-AP and 104-AP by September 30, 1998. (Short Title: W-211 Title II)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

2.9% at Expectation Level

N/A

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by October 22, 1998.

TWR 2.3: Develop plans and technologies for Tank Farm Closure.

0.0% at Measure Level

TWR 2.3.2: Issue an Activity Plan by August 1, 1998 for an additional Vadose zone characterization borehole whose objectives are tied to the approved Vadose Zone Program Plan. (Short Title: Vadose Zone)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.25% at Expectation Level

N/A

-25 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by August 22, 1998.

TWR 2.4: Support the TWRS Privatization Phase IB Authorization to Proceed decision Process.

0.0% at Measure Level

TWR 2.4.2: The Contractor shall demonstrate and document Readiness To Proceed (RTP) on TWRS Privatization Phase I by January 12, 1998. (Short Title: RTP Document)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

2.4% at Expectation Level

N/A

-10 percent of the incentive fee available for this PA will be assessed against the Contractor for each day after January 12, 1998, that the Contractor fails to meet the Performance Expectation to a maximum of -100 percent of the incentive fee available for this PA.

TWR 3: Pretreat and Stage High Level Waste

0.0% at Objective Level

TWR 3.2: Development of a Resource Loaded Project Schedule

0.0% at Measure Level

TWR 3.2.2: Provide a TWRS Advanced Work Authorization for FY 1999 implementation of Phase I Privatization, by September 22, 1998. (Short Title: FY 1999 AWA)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.35% at Expectation Level

N/A

N/A

TWR 3.3: Stage High Level Waste

0.0% at Measure Level

TWR 3.3.1: Complete design activities for the 200 E/W valve pit upgrades for Project W-314 Tank Farm Upgrades by March 20, 1998. (Short Title: W-314 Valve Pit Upgrades)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.8% at Expectation Level

N/A

-40 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by April 20, 1998.

TWR 3.3.2: Complete design activities on AY Tank Farm for Project W-314 Tank Farm Upgrades by May 27, 1998. (Short Title: W-314 AY Upgrades)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.6% at Expectation Level

N/A

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to complete design activities on AY Tank Farm by June 29, 1998.

TWR 3.3.3: Complete design activities on AZ Tank Farm for Project W-314 Tank Farm Upgrades by September 28, 1998. (Short Title: W-314 AZ Upgrades)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.6% at Expectation Level

N/A

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to complete design activities on AZ Tank Farm by October 30, 1998.

TWR 3.4: Complete Supporting Projects

0.0% at Measure Level

TWR 3.4.1: Project W-320, Contractor declaration of readiness (per DOE Order 425.1) for transfer of waste from Tank C-106 to Tank AY-102 by August 14, 1998. (Short Title: W-320 from C-106)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

3.5% at Expectation Level

N/A

-100 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by September 14, 1998.

TWR 3.4.2: Project W-320, Complete sluicing Transfer of waste from tank C-106 to tank AY-102 by August 30, 1999.

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.0% at Expectation Level

TBD

TBD

TWR 3.4.3: Begin operation of the W-030 ventilation system with once through cooling by January 23, 1998, demonstrating a negative pressure without operation of the 702-A ventilation system on four tanks. (Short Title: W-030 Vent System)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.2% at Expectation Level

N/A

-65 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by January 29, 1998.

TWR 3.4.4: Declaration of readiness for operation of supernate line (per DOE approved Memorandum of Understanding) and operation test of slurry line by April 5, 1998.

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.0% at Expectation Level

N/A

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by April 15, 1998.

TWR 3.4.5: Submit Topical Report to RL for High Heat Safety Issue Resolution, and resolve Tier I and Sub-Tank Advisory Panel comments by June 30, 1999. (Short Title: High Heat Resolution)

TBD percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0% at Expectation Level

TBD

TBD

TWR 4: Provide Phase 1 Infrastructure Support Systems

0.0% at Objective Level

TWR 4.1: Complete Project W-519

0.0% at Measure Level

TWR 4.1.1: Transmit to RL the draft Data Package from the Field Sampling Plan by February 18, 1998. (Short Title: W-519 Data Package)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.25% at Expectation Level

N/A

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by March 1, 1998.

TWR 4.1.2: Submit to RL by August 30, 1998, a letter providing approved design deliverables for W-519. (Short Title: W-519 Design Deliverables)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.25% at Expectation Level

N/A

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by September 30, 1998.

TWR 5: Interim Store Immobilized High-Level Waste

0.0% at Objective Level

TWR 5.1: Complete Phase I Solidified High-Level Waste Interim Storage Project W-464 and start operation by June 2002.

0.0% at Measure Level

TWR 5.1.1: Provide cost, schedule, and technical input for late validation of Project W-464 as a FY2000 line item project based on a 4.5m canister by July 15, 1998. (Short Title: Support W-464 Validation)

40 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.4% at Expectation Level

100 percent of the incentive fee for this PA can be earned by the Contractor if the Performance Expectation is completed by April 15, 1998.

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by July 15, 1998.

TWR 6: Store/Dispose of Immobilized Low-Activity Waste (ILAW)

0.0% at Objective Level

TWR 6.1: Complete TWRS ILAW Storage/Disposal Project W-465 and start operation by June 2002.

0.0% at Measure Level

TWR 6.1.1: Complete ILAW disposal Performance Assessment update, to support construction and operation of Project W-465 as a disposal facility, and provide cost, schedule, and technical input, for validation of Project W-465 as a FY 2000 line item project, by April 15, 1998. (Short Title: Support W-465 Performance Assessment and Validation)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.25% at Expectation Level

N/A

-50 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet the Performance Expectation by May 8, 1998.

TWR 6.1.3: Document soil hydraulic properties measurements from Borehole #1 by September 30, 1998. (Short Title: Borehole #1)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.3% at Expectation Level

N/A

N/A

TWR 6.1.4: Conduct waste form testing to provide ILAW disposal system performance assessment data and report results by September 30, 1998. (Short Title: W-465 Waste Form Testing)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

0.5% at Expectation Level

N/A

N/A

TWR 6.2: Complete ILAW Disposal Facility Project W-520 and start operation by March 2005.

0.0% at Measure Level

TWR 6.2.1: Complete ILAW Disposal Project W-520 90% Conceptual Design Report (CDR) by September 30, 1998. (Short Title: W-520 Concept. Design)

100 percent of the incentive fee for this PA can be earned by the contractor for meeting the Performance Expectation.

1.1% at Expectation Level

N/A

N/A

CFO 1 : Integrated financial systems maintain the Hanford Site financially in control.

0% at Objective Level

CFO 1.1 : N/A

0% at Measure Level

CFO 1.1.1: No funds ceilings cited on the FDH contract are exceeded in FY 1998.

No incentive fee amount will be earned by the Contractor for meeting the Performance Expectation; the Performance Expectation is minimum expected performance.

-2% at Expectation Level for each occurrence

N/A

-100 percent of the incentive fee available for this PA will be assessed against the Contractor for each control point where costs plus commitments exceeds total budget authority for that control point. A control point violation involves costs reported to RL in excess of control points that are not corrected.

CFO 2: The PHMC is managerially and financially in control.

0% at Objective Level

CFO 2.1: N/A

0% at Measure Level

CFO 2.1.1: By April 30, 1998, the Contractor shall review its performance measurement and cost charging practices and procedures for calculating BCWS, BCWP, and ACWP, make necessary revisions as required, and submit a written report to RL by April 30, 1998, verifying that the performance measurement and cost charging data is accurate and the necessary controls are in place.

No incentive fee amount will be earned by the Contractor for meeting the Performance Expectation; the Performance Expectation is minimum expected performance.

0% at Expectation Level

N/A

If the Contractor fails to meet these criteria, the affected PAs will be treated as Management and Total Scope Performance Incentives (Mega Incentive).

CFO 3: The Contractor is cost competitive.

0.0% at Objective Level

CFO 3.1: Provide only the necessary indirect-funded services at competitive costs.

0.0% at Measure Level

CFO 3.1.1 : The FY 1998 Actual Cost of Work Performed (ACWP) shall be less than or equal to 100% of the baseline.

40 percent of the incentive fee for this PA can be earned by the Contractor for meeting the Performance Expectation.

4.5% at Expectation Level

The Contractor can earn one of the following additional incentive fee amounts if the stated performance condition is met:

-70% of the incentive fee for this PA can be earned by the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is less than or equal to 95% of the baseline;

-80% of the incentive fee for this PA can be earned by the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is less than or equal to 94% of the baseline; or

-90% of the incentive fee for this PA can be earned by the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is less than or equal to 93% of the baseline; or

-100% of the incentive fee for this PA can be earned by the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is less than or equal to 92% of the baseline.

No incentive fee amount can be earned by the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities are greater than or equal to the baseline.

The Contractor will be assessed one of the following negative incentive fee amounts if the stated performance condition is met:

--40% of the incentive fee for this PA will be assessed against the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is greater than or equal to 101% of the baseline;

--70% of the incentive fee for this PA will be assessed against the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is greater than or equal to 102% of the baseline;

--80% of the incentive fee for this PA will be assessed against the Contractor

The Contractor can only earn incentive fee at the 70%,80%, 90% or 100% levels for the Stretch Performance Level.

if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is greater than or equal to 104% of the baseline;

--90% of the incentive fee for this PA will be assessed against the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is greater than or equal to 106% of the baseline; or

--100% of the incentive fee for this PA will be assessed against the Contractor if the FY 1998 ACWP for originated costs on Contractor indirect-funded activities is greater than or equal to 108% of the baseline.

In addition, the Contractor will be assessed 0.4% of total available FY 1998 incentive fee pool each time:

- the Contractor fails to disclose any material FY 1998 AWP baseline change;

- a reduction in workscope is implemented by the Contractor and not approved by RL using the formal change control process; or

- customers that are affected by the workscope Change Request are not made aware of the proposed change in advance of the change.

In addition, the Contractor will be assessed 1.2% of total available FY 1998 incentive fee pool for each accounting practice changed without following the RL Accounting Practice Change Policy.

CFO 4: Integrated, traceable, and consistent data.

0% at Objective Level

CFO 4.1: Data contained in the Multi-Year Work Plans (MYWP); Integrated Site Baseline (ISB); Accelerated Cleanup Plan (including Project Baseline Summary (PBS) [Parts A and C], Operations/Field Office Baseline Summary and Site Baseline Summary); Integrated Priority List (IPL); and the Hanford Strategic Plan (HSP) shall be integrated, traceable, and consistent.

0% at Measure Level

CFO 4.1.1 : The Contractor shall demonstrate:

Element 1: 90% Data Traceability by budget submittal date (when Formulation Budget due to HQ - Mid-April);

Element 2: 80% Data Consistency by budget submittal date (when Formulation Budget due to HQ - Mid-April);

Element 3: 95% Data Traceability by MYWP submittal date (when Execution Year MYWP due to RL - Late August); and

Element 4: 90% Data Consistency by MYWP submittal date (when Execution Year MYWP due to RL - Late August)

15 percent of the incentive fee available for this PA can be earned by the Contractor for meeting Elements 1 and 2 of the

Performance Expectation.

25 percent of the incentive fee available for this PA can be earned by the Contractor for meeting Elements 3 and 4 of the Performance Expectation.

3% at Expectation Level

60 percent of the incentive fee available for this PA can be earned by the Contractor for completion of Elements 5 and 6:

Element 5: 95% Data Traceability by budget submittal date (when Formulation Budget due to HQ - Mid-April)

Element 6: 95% Data Consistency by budget submittal date (when Formulation Budget due to HQ - Mid-April)

-20 percent of the incentive fee available for this PA will be assessed against the Contractor for each of the following two conditions, for a total maximum negative incentive fee of -40 percent:

- achievement of 70% or less Data Traceability or Data Consistency by budget submittal date (mid-April); or

- achievement of 85% or less Data Traceability, or 75% or less Consistency by MYWP submittal date (August).

CFO 5: Acquisition Excellence

0% at Objective Level

CFO 5.1: The Contractor shall achieve all socioeconomic and fixed-price subcontracting goals

0% at Measure Level

CFO 5.1.1 : By the end of FY 1998, the Contractor shall:

Element 1 (3 requirements): achieve all small business, small disadvantaged business, and women-owned business goals for the combined performance of all members of the PHMC team (Fluor Daniel Hanford, Inc.; B&W Hanford Company; DE&S Hanford, Inc.; Lockheed Martin Hanford Corporation; Numatec Hanford Corporation; Waste Management Services of Hanford, Inc.; and DynCorp Tri-Cities Services, Inc.) that are established in the RL approved FY 1998 Fluor Daniel Hanford Socioeconomic Subcontracting Plan; and

Element 2 (1 requirement): achieve a minimum level of 90 percent fixed-price subcontracting for the combined performance of all members of the PHMC team.

No incentive fee amount will be earned by the Contractor for meeting the Performance Expectation; the Performance Expectation is minimum expected performance.

-1% at Expectation Level

N/A

-75 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet Element 1 of the Performance Expectation.

-25 percent of the incentive fee available for this PA will be assessed against the Contractor for failure to meet Element 2 of the Performance Expectation.

SID 1: Excellence in information resource management systems.

0% at Objective Level

SID 1.1: Provide an integrated suite of software modules for Finance and Supply Management Systems for Project Hanford.

0% at Measure Level

SID 1.1.1 : The Contractor shall complete the Production Readiness Acceptance for Both the Finance Management Module Phase I and the Supply Management Module by September 29, 1998. (Annual Work Plan Activity ID numbers 1.3.20 and 1.4.19).

40 percent of the incentive fee for this PA can be earned by the Contractor for meeting the Performance Expectation.

0.35% at Expectation Level

N/A

-100% of the incentive fee for this PA will be assessed against the Contractor if both the Financial Phase I and Supply Management Modules have not completed Production Readiness Acceptance by October 29, 1998.

SID 1.2: Eliminate Year 2000 associated computer related problems that if left unresolved would have an adverse impact to the Hanford Mission.

0% at Measure Level

SID 1.2.1:By September 30, 1998, the Contractor shall: 1) have Assessed 100% of the Equipment, 100% of the Infrastructure, and 80% of the IRM Systems, and 2) Remediated 70% of the Equipment, 70% of the Infrastructure, and 30% of the IRM Systems as defined in the attachments to Contractor letter FDH-9760877, dated November 18, 1997.

75 percent of the incentive fee for this PA can be earned by the Contractor for meeting the Performance Expectation.

0.65% at Expectation Level

100 percent of the incentive fee available for this PA can be earned by the Contractor if the Performance Expectation is met, and 100 percent of the IRM Systems are Assessed, 80 percent of the Equipment is Remediated, 80 percent of the Infrastructure is Remediated, and 40 percent of the IRM Systems are Remediated, as defined in the attachments to Contractor letter FDH-9760877, dated November 18, 1997.

N/A

MGR 1: Reduce project direct costs.

0.00% at Objective Level

MGR 1.1: Reduce Tank Waste Remediation System, Waste Management, Spent Nuclear Fuel, and Facility Stabilization project direct costs.

0.00% at Measure Level

MGR 1.1.1:Reduce project direct costs by $21.2M in FY 1998. Project direct cost savings may come from any of the following projects: Tank Waste Remediation System, Waste Management, Spent Nuclear Fuel, and Facility Stabilization.

70 percent of the incentive fee available for this PA can be earned by the Contractor for meeting the Performance Expectation.

If less than $21.2M is saved, the Contractor may earn a portion of the 70 percent as identified in Section 5, Table 1.

4.75% at Expectation Level

85 percent of the incentive fee available for this PA can be earned by the Contractor if the Performance Expectation is met and a total of net project direct cost savings exceeds $23.85M in FY 1998; and

100 percent of the incentive fee available for this PA can be earned by the Contractor if the Performance Expectation is met and the total of net project direct cost savings exceeds $26.50M in FY 1998.

N/A

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MEGA INCENTIVE: The DOE Performance Expectation Plan for FDH Company Performance During the Twelve-Month Evaluation Period, Ending September 30, 1998, establishes the bases to measure performance under this PA.

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