This Appendix sets forth the procedure to be used in the evaluation of Ames Laboratory’s performance as required by Part I, Section H, Clause H.32 — Use of Objective Standards of Performance, Self Assessment and Performance Evaluation of the contract. The procedure described in this Appendix utilizes, to the extent possible, performance objectives, measures, expectations and self-assessment to determine Ames Laboratory’s performance.

Guidelines on the use of the performance objectives, measures, expectations and the self-assessment are set forth in Attachment 1, Performance Assessment Guidelines.

For the period January 1, 2000, through December 31, 2000, the Parties have agreed to evaluate and assess the activities identified in Attachment 2, Performance Areas. Attachment 2 reflects that the Contractor performance will be assessed under two broad categories, namely Part I Performance Measures (Critical Operations) and Part II Systems Assessment (General Operations).

The performance objectives and measures identified in Part I consist of incentivized (fee bearing) Performance Measures, while Part II Systems Assessment (General Operations) consists of non-fee bearing system assessment measures (SAM’s) and self-assessment criteria. Each Performance Area will receive its own evaluation and rating. The ratings received for Part 1 - Performance Measures will be the primary basis used to determine the Contractor’s fee earned in a given performance period (See Attachment 1, Paragraph G to this Appendix). In addition, DOE reserves its rights specified elsewhere in this Contract, including those in Part I, Section H, Clause H.32 — Use of Objective Standards of Performance, Self Assessment and Performance Evaluation, and those in Part II, Section I, Clause I.116 — Conditional Payment of Fee, Profit, or Incentives.

Attachment 3 lists the performance objectives, measures, and expectations for Part I Performance Measures. The attachment also lists system assessment measures and self-assessment criteria for Part II Performance Areas.

The schedule for performing the evaluation of the Laboratory is provided in Attachment 4. It is the intent of the parties to adhere to this schedule although either party may request to alter the proposed schedule.

Attachment 5 establishes the maximum performance fee available, as well as the potential additions or reductions to the performance fee, based primarily on the individual ratings attained in Part I - Performance Areas.

The Parties agree to work together to clarify and improve, when necessary, the process to be used to measure and validate the level of performance attained. In particular, the Parties agree to:

The Parties acknowledge that continued changes in the Department's Directives system are occurring and that implementation of this performance-based contract will require changes to refine selected performance objectives, measures, and expectations, implement data collection and reporting mechanisms, and establish benchmarks against which to set targets for performance improvement and/or measurement.

The Parties recognize that the evaluation period will also be utilized to assure that systems and processes are implemented, tested, evaluated, and refined. The Department will use the results of these performance measures, the contractor’s self-assessment of overall performance and other inputs, such as DOE’s day-to-day operational awareness, DOE’s annual business review, General Accounting Office or Inspector General reviews, or for-cause reviews, as appropriate to evaluate the Contractor's performance for each performance period.

Attachments:

3. Part I - Performance Measures (Critical Operations)

Part II - Systems Assessment (General Operations)