§ 1609.7101-2 - Community-rated carrier performance factors.


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  • OPM will apply the Customer Service and Critical Contract Compliance Requirements percentage factors specified by the contracting officer when a community-rated carrier does not provide the information, payment, or service, perform the function, or otherwise meet its obligations as stated in 1609.7101–1. The total premium will be multiplied by the sum of all the factors and the resulting amount will be withheld from the carrier's periodic premium payments payable during the first quarter of the following contract period, unless an alternative payment arrangement is made with the carrier's contracting officer.

    The factors for each basic element are set forth as follows:

    Community-Rated Carrier Performance Factors

    ElementPerformance factor (to be multiplied by premium and withheld from carrier's payments)
    I. Customer Service (70% of Total).007
    II. Critical Contract Compliance Requirements (30% of Total).003
    Maximum Aggregate Performance Factor.01