Contractor Incentives (Seeking Industry Comments)

The Office of Naval Research (ONR) is seeking comments from industry on proposed contract language designed to enhance deliverable quality and incentivize contractor personnel retention. The proposed language includes new quality metrics for procurement packages and purchase requests, as well as a metric for annual contractor turnover rate. The contractor will be expected to maintain high retention to ensure program stability, and will be required to reduce the final invoice for that period by 5% if they cannot retain at least 90% of their staff. • The proposed language includes a 95% initial invoicing limit and a 3-day COR approval timeline. • The contractor will be expected to calculate quality metrics on a monthly basis, and this calculation will be used as the basis for invoicing. • The contractor will be required to reduce their monthly invoice by 5% for procurement packages and 2% for purchase requests if the metric for first-submission-acceptance falls below 100%. • The contractor will be required to reduce the final invoice for that period by 5% if they cannot retain at least 90% of their staff.