Check appropriate box:

þ   Outcome #1:   Restore the River Corridor for multiple uses

þ   Outcome #2:   Transition Central Plateau to support long-term waste management

þ   Outcome #3:   Put DOE Assets to work for the future

Identify fee schedule by performance objective and/or measure(s)

PREVIOUS YEAR’S GATEWAY: Describe previous year’s gateway (if applicable) that must be completed before fee can be paid under this performance measure. The requirements listed below are the gateway only requirements for this Performance Measure. (N/A in FY 2000)

GENERAL REQUIREMENTS: In order to earn incentive fee under this Performance Incentive, the Contractor shall:

1. Fully comply with all terms and conditions of the Contract. Nothing in this Performance Incentive shall relieve the Contractor from complying with any terms and conditions of the Contract, and
2. Meet the specific completion criteria and expectations set forth in this Performance Incentive.

DEFINE COMPLETION: (Specify Performance Elements and describe indicators of success (quality/progress). Include baseline documentation/data against which completion documentation should be compared).

1. Maintain environmental compliance: The Contractor shall manage and conduct activities in accordance with all applicable environmental requirements, including: federal, state, and local laws; federal, state, and local regulations; and DOE requirements.

   Performance Expectation:

   The Contractor shall:

   • Maintain compliance with all applicable federal, state, and local environmental statutes and regulations.
   • Self-disclose non-compliance and enact self-correction of the situation in a timely manner.
   • Perform timely and effective corrective actions for deficiencies identified by DOE or other regulatory entities.

   Determination of Fee: Up to $1.0M in fee will be forfeited if the Contractor fails to satisfactorily meet 1A, above. The determination as to the overall effectiveness of the Contractor’s performance against this Performance Objective/Measure shall be made by the DOE-RL Manager, or his designee, based on satisfactory accomplishment of the performance expectations above, and giving consideration to input provided by DOE-RL staff.

   Determination of non-compliance against environmental requirements may be based on input from the following sources: (1) written enforcement actions from regulatory agencies, and (2) findings of DOE-RL staff. Determination shall also be made giving consideration to such factors as impact on health, environment, and/or severity [toxicity, persistence, volume, duration, and/or number of violation(s)].

2. Implement Integrated Safety Management System (ISMS): The Contractor shall have an implemented and verified ISMS in place by September 30, 2000, in accordance with the Memorandum to All Department and Contractor Employees from Secretary of Energy, Bill Richardson, Subject: Safety – Accountability and Performance, dated March 3, 1999.

   Performance Expectation:

   • Successfully complete DOE Phase II verifications for facilities as agreed with DOE-RL.
   • Deliver systems description, which include a successful DOE verification, as described in DOE-HDBK-3027-99, Integrated Safety Management Systems (ISMS) Verification Team Leaders Handbook,June 1999.
   • Obtain authorization agreement approvals for all category 2 nuclear facilities, prior to Phase II Verifications.
   • Ensure all operations are conducted in accordance with ISMS requirements noted above
   • Utilize DOE Policy 450.5, Line Environment, Safety and Health Oversight, as a guide to effectively implement:

     a)	Self-assessment program,
     b)	Functional corrective action tracking and resolution process,
     c)	Lessons-learned program, and
     d)	Overall feed-back program leading towards continuous improvement

   • Have a functional process in place to maintain its ISMS which utilizes DOE G 450.4-1, Integrated Safety Management System Guide for use with DOE P 450.4, Safety Management System Policy, and DEAR Safety Management System Contract Clauses, 11-26-97, Volumes 1 and 2., as guidelines

   Determination of Fee:

   Up to $1.0M in fee will be forfeited if the Contractor fails to satisfactorily meet B, above. The determination as to the overall effectiveness of the Contractor’s performance against this Performance Objective/Measure shall be made by the DOE-RL Manager, or his designee, based on satisfactory accomplishment of the performance expectations above, and giving consideration to input provided by DOE-RL staff.

1. Implement new organization & management systems: The Contractor shall institute organizational and management system improvements for significantly increasing management effectiveness and control of its contractual work activities.

   Performance Expectation:

   • Increase productivity
   • Develop management system description
   • Improve project control and discipline
   • Have integrated performance measures in place to measure progress against the Site Critical Outcomes and management effectiveness
   • Implement a contractor self assessment process to measure contractual and managerial effectiveness for continuous improvement

   Determination of Fee:

   Up to $0.5M in fee will be forfeited if the Contractor fails to satisfactorily meet A above. The determination as to the overall effectiveness of the Contractor’s accomplishment of Performance Objective/Measure 2A shall be made by the DOE-RL Manager, or his designee, giving consideration to input provided by DOE-RL staff.

2. Provide efficient & effective Site infrastructure and support services: The Contractor shall provide efficient and effective site infrastructure and support services (e.g., utilities, maintenance, general purpose facilities and information management) commensurate with site mission needs.

   Performance Expectation:

   • Provide the required infrastructure and supports services as efficiently and effectively as possible, within the constraints such as funding and labor agreements.
   • Match infrastructure and service requirements in concert with mission requirements (i.e. alignment with Site Critical Outcomes).

   Determination of Fee:

   Up to $0.5M in fee will be forfeited if the Contractor fails to satisfactorily meet 2B above. The determination as to the overall effectiveness of the Contractor’s accomplishment of Performance Objective/Measure 2B shall be made by the DOE-RL Manager or his designee, giving consideration to input provided by DOE-RL staff.

3. Provide Effective Science & Technology (S&T) Integration and Application: The contractor shall contribute to the Hanford cleanup mission by deploying science and technology to reduce technical risk, accelerate schedule, and satisfy Hanford Site technology needs.

   Performance Expectation:

   • Conduct science and technology assessments to identify and quantify areas of high technical risk/uncertainty, and develop near and long-term mitigation plans (e.g., S&T plans, technology roadmaps). These plans will include Technology Insertion Points (TIPs) and S&T Needs, and will identify the necessary S&T workscope within the appropriate MYWP baseline.

     -	Provide a list of S&T assessments by 12/23/99
     -	Submit S&T Plans/Roadmaps by 4/17/00.

   • Deploy technologies that provide solutions to areas of need identified by the S&T assessments.
   • Contribute to the Contractor’s portion of the S&T-related EM Corporate Performance as documented in the FY00 EM Management Commitment.
   • Document the benefit derived from the deployment of each technology using the Return on Investment models similar to the approach/format used by the Pollution Prevention (P2) Program.
   • Complete all TIP milestones and provide documentation supporting the TIP decision.

   Determination of Fee:

   Up to $1.5M in fee may be earned for Performance Objective/Measure 2C. The fee determination shall be made by the DOE-RL Manager, or his designee, based on satisfactory accomplishment of the performance expectations above, and giving consideration to input provided by DOE-RL staff.

4. Achieve Pollution Prevention: Executive Order (EO) 13101 requires the diversion of sanitary waste from landfills, and increased purchases of Environmental Protection Agency (EPA) designated recycled-content products. Accordingly the Contractor shall facilitate compliance with this Order.

   Performance Expectation:

   • Implement the Contractor’s portion of the Hanford Site Waste Minimization and Pollution Prevention Awareness Program Plan, dated August 1998, as amended.

   Determination of Fee:

   Up to $1.0M in fee may be earned for Performance Objective/Measure 2D. The fee determination shall be made by the DOE-RL Manager, or his designee, based on satisfactory accomplishment of the performance expectations above, and giving consideration to input provided by DOE-RL staff.

5. Achieve Effective Energy Management: The Contractor shall cost effectively comply with all applicable laws, Executive Orders and Federal regulations for energy efficiency, use of renewable energy and water conservation at Federal facilities.

   Performance Expectation:

   • Meet Expectations for all sections of the DOE-RL’s FY 2000 Energy Management Performance Agreement (PA) with HQ-EE-90.

   Determination of Fee:

   Up to $0.45M in fee will be forfeited if the Contractor fails to satisfactorily meet 2E above. The determination as to the overall effectiveness of the Contractor’s accomplishment of Performance Objective/Measure 2E shall be made by the DOE-RL Manager or designee, giving consideration to input provided by DOE-RL staff.

6. Achieve acceptable baseline performance

   Performance Expectation:

   • Achieve the technical content of the work in accordance with specified requirements (Hanford Site Environmental Management Specification); and
   • Perform within baseline cost and schedule targets, as established in all authorized MYWPs and AWPs.
   • Implement best business practice guidelines provided in industry standards, such as ANSI/EIA Standard-748, Earned Value Management System (EVMS), as cited in Contract Clause H.10, by March 30, 2000.

   Determination of Fee:

   Up to $0.5M in fee will be forfeited if the Contractor fails to satisfactorily meet the expectation 2F above. The determination as to the overall effectiveness of the Contractor’s performance against Performance Objective/Measure 2F shall be made by the DOE-RL Manager, or his designee, based on satisfactory accomplishment of the performance expectations above, and giving consideration to input provided by DOE-RL staff.

   Determination of satisfactory performance will also be based on demonstrated conformity with the EVMS Standard through an integrated baseline review scheduled by the Contracting Officer (to occur in the last six months of the fiscal year), including demonstration that baseline information is accurate, consistent and reported in a timely manner. The following four sections from the EVMS Standard will be emphasized:

   • 2.1c "Provide for the integration of the company’s planning, scheduling, budgeting, work authorization, and cost accumulation processes with each other, and as appropriate, the program work breakdown structure and the program organizational structure."
   • 2.2a "Schedule the authorized work in a manner, which describes the sequence of work and identifies significant task interdependencies required to meet the requirements of the program."
   • 2.4f "Develop revised estimates of cost at completion based on performance to date, commitment values for material, and estimates of future conditions. Compare this information with the performance measurement baseline to identify variances at completion important to company management and any applicable customer reporting requirements including statements of funding requirements."
   • 2.5a "Incorporate authorized changes in a timely manner, recording the effects of such changes in budgets and schedules. In the directed effort prior to negotiation of a change, base such revisions on the amount estimated and budgeted to the program organizations".

1. Respond to customer requests: The Contractor shall be responsive to the Contracting Officer or Contracting Officer’s Representative direction and requests.

   Performance Expectation:

   • Address responses from a corporate perspective, in the best interest of the Hanford Site.
   • Provide quality responses in a timely manner.
   • Be consistent with Critical Outcomes.

2. Management responsiveness to employee concerns resolution: The Contractor shall be responsive to employee concerns and bring resolution to issues of safety, health, environment, and workplace harmony.

   Performance Expectation:

   • Resolve employee concerns issues in-house, in a timely manner appropriate to each situation.
   • Keep DOE-RL informed of employee concerns;
   • Annually determine the effectiveness of the Contractor employee concerns program.

   Determination of Fee:

   Up to $0.5M in fee will be forfeited if the Contractor fails to satisfactorily meet 3A or 3B above. The determination as to the overall effectiveness of the Contractor’s accomplishment of Performance Objective/Measure 3 shall be made by the DOE-RL Manager or his designee, giving consideration to input provided by DOE-RL staff.

3. National Facility Deactivation Initiative (NFDI): This program is aimed at establishing a core of deactivation expertise Complex-wide. This will be accomplished by strengthening deactivation project management and developing long-term deactivation site strategies, resulting in acceleration of the site deactivation program.

   Performance Expectation:

   The Contractor participates as the site representative to the NFDI Committee, and as such, is expected to leverage expertise gained to:

   • Strengthen Site deactivation project management.
   • Accelerate Site deactivation program.
   • Develop long-term site deactivation strategies.
   • Carry out activities of the NFDI Committee, as directed by DOE-RL.

   Determination of Fee:

   Up to $0.5M in fee may be earned for Performance Objective/Measure 3C. The fee determination shall be made by the DOE-RL Manager, or his designee, based on satisfactory accomplishment of the expectations above; and giving consideration to progress reports regarding interfaces with other sites, feedback from the NFDI Committee, and input provided by DOE-RL staff.

1. Provide employee, HQ, the general public, stakeholders, regulators, and Tribal Nations with timely and accurate information:

   Performance Expectation:

   • Provide timely and accurate information about Hanford to reflect the Departmental requirements to both internal and external customers, as delineated in Section C.4E, External/Internal Communications of the Contract.
   • Align communication and progress reporting with Site Critical Outcomes.

2. Responsiveness to Congressional Interaction: The Contractor shall be responsive to support Congressional interactions.

   Performance Expectation:

   • Interact and communicate with DOE-RL Office of External Affairs (OEA) consistently on any U.S. Congressional inquiries
   • Coordinate any U.S. Congressional inquiries with OEA prior to the Contractor’s providing any response to Congressional members or staff.

   Determination of Fee:

   • Up to $0.5M in fee will be forfeited if the Contractor fails to satisfactorily meet 4A or 4B above. The determination as to the overall effectiveness of the Contractor’s accomplishment of Performance Objective/Measure 4 shall be made by the DOE-RL Manager or his designee, giving consideration to input provided by DOE-RL staff.

The Contractor team shall work cooperatively with other site entities, (Bechtel Hanford Inc. (BHI), Pacific Northwest National Laboratory (PNNL), Hanford Environmental Hanford Foundation (HEHF), and Lockheed Martin Hanford (LMH)) to improve the overall Hanford Site effectiveness.

Performance Expectation:

1. Interface with other site entities for site-wide planning of work.
2. Work cooperatively with other site entities to establish a defensible model for making decisions on Hanford programs’ (FDH, BHI, LMH, and PNNL) mid- and long-term use of core analytical competencies and resources, both on-site and commercial. The model shall address overall cost to DOE and the quality, sufficiency, efficiency and timeliness of the services to meet program specific needs. The model shall ensure consistent cost comparison.
3. Provide other site entities appropriate information in a timely, accurate, complete, professional manner.
4. Manage its communication efforts so those items affecting or involving other site entities are coordinated in order to ensure consistency of information.
5. Partner, team, coordinate, and communicate with LMH and PNNL in the creation of non-Hanford jobs. The number and quality of contacts with local economic development organizations and an overall evaluation by those organizations shall be used as the basis for evaluation.
6. Provide responsive and timely support services to LMH, BHI and PNNL.

Determination of Fee:

Up to $1.0M in fee will be forfeited if the Contractor fails to satisfactorily meet the expectations of the Performance Objective/Measure 5 above. The determination as to the overall effectiveness of the Contractor’s accomplishment of Performance Objective/Measure 5 shall be made by the DOE-RL Manager or his designee, giving consideration to input provided by DOE-RL staff.

COMPLETION DOCUMENTS LIST: (In addition to the Completion Notice the document(s) that should be submitted/data that should be available/actions to be taken by evaluator, to determine actual performance to the requirements stated above).

• The Contractor shall provide a self-assessment addressing each performance expectation under this Performance Incentive by October 20, 2000. This is in addition to the self-assessment addressed in Performance Measure/Objective 2, Leadership and Management Effectiveness.

ASSUMPTIONS/TECHNICAL BOUNDARY CONDITIONS: (For reasonably foreseeable impacts to performance which are not covered under the Contract. If the assumption or condition proves false the remedy is renegotiation unless stated otherwise).

Upon request from the Contractor, RL will issue appropriate direction to other site entities where such direction is necessary to facilitate performance under Performance Measure/Objective 5, Partnering with other site entities.