73351022Q0158 Att 3 Quality Assurance Surveillance Plan.pdf

QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

US Small Business Administration Digital Mail Equipment and Maintenance

August 23, 2022

TABLE OF CONTENTS

1 INTRODUCTION

1.1 Purpose

1.2 Performance Management Approach

1.3 Performance Management Strategy

2 ROLES AND RESPONSIBILITIES

2.1 The Contracting Officer

2.2 The Contracting Officer’s Technical Representative

3 IDENTIFICATION OF REQUIRED PERFORMANCE STANDARDS/QUALITY LEVELS

4 METHODOLOGIES TO MONITOR PERFORMANCE

4.1 Surveillance Techniques

4.2 Customer Feedback

4.3 Acceptable Quality Levels

5 QUALITY ASSURANCE DOCUMENTATION

5.1 The Performance Management Feedback Loop

5.2 Monitoring Forms

6 ANALYSIS OF QUALITY ASSURANCE ASSESSMENT

6.1 Determining Performance

6.2 Reporting

6.3 Reviews and Resolution

ATTACHMENT 1: PERFORMANCE REQUIREMENTS SUMMARY

ATTACHMENT 2: SAMPLE QUALITY ASSURANCE MONITORING FORM

73351022Q0158 Attachment 3 Page 1 of 10

ATTACHMENT 3 –

QUALITY ASSURANCE SURVEILLANCE PLAN

(QASP)

1 INTRODUCTION

This quality assurance surveillance plan (QASP) is pursuant to the requirements listed in the performance work statement (PWS) entitled Digital Mail Equipment Rental and Maintenance. This plan sets forth the procedures and guidelines US Small Business Administration mail meter services use in ensuring the required performance standards or services levels are achieved by the Contractor.

1.1 Purpose

1.1.1 The purpose of the QASP is to describe the systematic methods used to monitor performance and to identify the required documentation and the resources to be employed. The QASP provides a means for evaluating whether the Contractor is meeting the performance standards/quality levels identified in the PWS and the Contractor’s quality control plan (QCP), and to ensure that the government pays only for the level of services received.

1.1.2 This QASP defines the roles and responsibilities of all members of the integrated project team (IPT), identifies the performance objectives, defines the methodologies used to monitor and evaluate the Contractor’s performance, describes quality assurance documentation requirements, and describes the analysis of quality assurance monitoring results.

1.2 Performance Management Approach

1.2.1 The PWS structures the acquisition around “what” service or quality level is required, as opposed to “how” the Contractor should perform the work (i.e., results, not compliance). This QASP will define the performance management approach taken by Office of Support Services to monitor and manage the Contractor’s performance to ensure the expected outcomes or performance objectives communicated in the PWS are achieved. Performance management rests on developing a capability to review and analyze information generated through performance assessment. The ability to make decisions based on the analysis of performance data is the cornerstone of performance management; this analysis yields information that indicates whether expected outcomes for the project are being achieved by the Contractor.

1.2.2 Performance management represents a significant shift from the more traditional quality assurance (QA) concepts in several ways. Performance management focuses on assessing whether outcomes are being achieved and to what extent. This approach migrates away from the scrutiny of compliance with the processes and practices used to achieve the outcome. A performance-based approach enables the Contractor to play a large role in how the work is performed, as long as the proposed processes are within the stated constraints. The only exceptions to process reviews are those required by law (federal, state, and local) and compelling business situations, such as safety and health. A “results” focus provides the Contractor flexibility to continuously improve and innovate over the course of the contract as long as the critical outcomes expected are being achieved and/or the desired performance levels are being met.

1.3 Performance Management Strategy

1.3.1 The Contractor is responsible for the quality of all work performed. The Contractor measures that quality through the Contractor’s own quality control (QC) program. QC is work output, not workers, and therefore includes all work performed under this contract regardless of whether the work is performed by contractor employees or by subcontractors. The Contractor’s QCP will set forth the staffing and procedures for self-inspecting the quality, timeliness, responsiveness, customer satisfaction, and other performance

73351022Q0158 Attachment 3 Page 2 of 10 requirements in the PWS. The Contractor will develop and implement a performance management system with processes to assess and report its performance to the designated government representative. The Contractor’s QCP will set forth the staffing and procedures for self-inspecting the quality, timeliness, responsiveness, customer satisfaction, and other performance requirements in the PWS. This QASP enables the government to take advantage of the Contractor’s QC program.

1.3.2 The government representative(s) will monitor performance and review performance reports furnished by the Contractor to determine how the Contractor is performing against communicated performance objectives. The government will make determination regarding incentives based on performance measurement metric data and notify the Contractor of those decisions. The Contractor will be responsible for making required changes in processes and practices to ensure performance is managed effectively.

2 ROLES AND RESPONSIBILITIES

2.1 The Contracting Officer

The Contracting Officer (CO) is responsible for monitoring contract compliance, contract administration, and cost control and for resolving any differences between the observations documented by the COR and the Contractor. The CO will designate one full-time COR as the government authority for performance management. The number of additional representatives serving as technical inspectors depends on the complexity of the services measured, as well as the Contractor’s performance, and must be identified and designated by the CO.

2.2 The Contracting Officer’s Representative

The Contracting Officer’s Representative (COR) is designated in writing by the CO to act as his or her authorized representative to assist in administering a contract. COR limitations are contained in the written appointment letter. The COR is responsible for technical administration of the project and ensures proper government surveillance of the Contractor’s performance. The COR is not empowered to make any contractual commitments or to authorize any contractual changes on the government’s behalf. Any changes that the Contractor deems may affect contract price, terms, or conditions shall be referred to the CO for action. The COR will have the responsibility for completing QA monitoring forms used to document the inspection and evaluation of the Contractor’s work performance. Government surveillance may occur under the inspection of services clause for any service relating to the contract.

3 IDENTIFICATION OF REQUIRED PERFORMANCE STANDARDS/QUALITY LEVELS

The required performance standards and/or quality levels are included in the PWS. If the Contractor meets the required service or performance level, it will be paid the monthly amount agreed on in the Contract or Order. If the Contractor exceeds the service or performance level, it is eligible to receive an incentive as stated in the Contract or Order. Failure to meet the required service or performance level will result in a deduction from the monthly amount.

4 METHODOLOGIES TO MONITOR PERFORMANCE

4.1 Surveillance Techniques

In an effort to minimize the performance management burden, simplified surveillance methods shall be used by the Government to evaluate contractor performance when appropriate. The primary methods of surveillance are:

Random monitoring, which shall be performed by the COR designated inspector.

73351022Q0158 Attachment 3 Page 3 of 10

100% Inspection – Each month, the COR shall review the generated documentation and enter summary results into the Surveillance Activity Checklist.

Periodic Inspection – COR typically performs the periodic inspection on a monthly basis.

4.2 Customer Feedback

The Contractor is expected to establish and maintain professional communication between its employees and customers. The primary objective of this communication is customer satisfaction. Customer satisfaction is the most significant external indicator of the success and effectiveness of all services provided and can be measured through customer complaints.

Performance management drives the Contractor to be customer focused through initially and internally addressing customer complaints and investigating the issues and/or problems but the customer always has the option to communicate complaints to the COR, as opposed to the Contractor.

Customer complaints, to be considered valid, must set forth clearly and in writing the detailed nature of the complaint, must be signed, and must be forwarded to the COR. The COR will accept those customer complaints and investigate further.

Customer feedback may also be obtained either from the results of formal customer satisfaction surveys or from random customer complaints.

4.3 Acceptable Quality Levels

The acceptable quality levels (AQLs) are structured to allow the Contractor to manage how the work is performed while providing negative incentives for performance shortfalls. For certain critical activities such as those involving technical support services, the desired performance level is established at 100 percent.

Other levels of performance are keyed to the relative importance of the task to the overall mission performance at US Small Business Administration.

5 QUALITY ASSURANCE DOCUMENTATION

5.1 The Performance Management Feedback Loop

The performance management feedback loop begins with the communication of expected outcomes.

Performance standards are expressed in the PWS and are assessed using the performance monitoring techniques shown in Exhibit 1.

5.2 Monitoring Forms

The government’s QA surveillance, accomplished by the COR, will be reported using the monitoring forms in Exhibits 1 and 2. The forms, when completed, will document the government’s assessment of the Contractor’s performance under the contract to ensure that the required results or service or quality levels are being achieved.

5.2.1 The COR will retain a copy of all completed QA surveillance forms.

6 ANALYSIS OF QUALITY ASSURANCE ASSESSMENT

6.1 Determining Performance

6.1.1 Government shall use the monitoring methods cited to determine whether the performance standards/service levels/AQLs have been met. If the Contractor has not met the minimum requirements, it may be asked to develop a corrective action plan to show how and by what date it intends to bring

73351022Q0158 Attachment 3 Page 4 of 10 performance up to the required levels. COR when appropriate: Failure to meet the AQL may result in a deduction from the monthly payment, using the deduction percentages shown in Exhibit 1. Likewise, if the Contractor exceeds the performance standards, an incentive will be provided.

6.2 Reporting

6.2.1 At the end of each month, the COR, will prepare a written report for the COR summarizing the overall results of the quality assurance surveillance of the Contractor’s performance. This written report, which includes the Contractor’s submitted monthly report and the completed quality assurance monitoring forms (Exhibit 2), will become part of the QA documentation. It will enable the government to demonstrate whether the Contractor is meeting the stated objectives and/or performance standards, including cost/technical/scheduling objectives.

6.3 Reviews and Resolution

6.3.1 The COR may require the Contractor’s project manager, or a designated alternate, to meet with the COR band other government IPT personnel as deemed necessary to discuss performance evaluation. The COR will define a frequency of in-depth reviews with the Contractor, including appropriate self-assessments by the Contractor; however, if the need arises, the Contractor will meet with the COR as often as required or per the Contractor’s request. The agenda of the reviews may include:

Monthly performance assessment data and trend analysis

Issues and concerns of both parties

Projected outlook for upcoming months and progress against expected trends, including a corrective action plan analysis

Recommendations for improved efficiency and/or effectiveness

Issues arising from the performance monitoring processes

6.3.2 The QAR must coordinate and communicate with the Contractor to resolve issues and concerns regarding marginal or unacceptable performance.

6.3.3 The COR and contractor should jointly formulate tactical and long-term courses of action.

Decisions regarding changes to metrics, thresholds, or service levels should be clearly documented.

Changes to service levels, procedures, and metrics will be incorporated as a contract modification at the convenience of the PCO/ACO.

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EXHIBIT 1: PERFORMANCE REQUIREMENTS SUMMARY

Required Services (Tasks)

Performance Standards

Acceptable Quality Levels

Methods of

Surveillance

Incentive and/or Disincentive

Task 1 The Contractor shall provide a mail management solution, consisting of digital mail machines, scales, postage meters, and the necessary software to produce postage across all designated

SBA locations.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 2 The Contractor shall be able to provide mail equipment suitable for SBA offices that have small, medium, and large mail volumes. The capacity of the mail equipment shall be based on industry standards.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 3 The Contractor shall ensure that when new USPS rate changes are announced, each

SBA location will receive the new software at least one week prior to the implementation date of the postage increase. All USPS rate changes will be available for download at no charge to the agency.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 4 The Contractor shall provide new equipment and upgrades to the current equipment within two months of the request unless the upgrades involve multiple locations. If multiple locations are involved, the terms will be negotiated between the Contractor and the SBA.

Upgrades shall be at no additional cost to the SBA.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

73351022Q0158 Attachment 3 Page 6 of 10

Task 5 The Contractor shall allow upgrades of the equipment without considering the replacement as an addition to the inventory count. The new equipment shall replace the old equipment. Upgraded equipment is included in the firm-fixed-price. No increase in the firm-fixed-price will occur as this Task Five is part of the Contractor’s initial pricing.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 6 The Contractor shall provide two levels of technical support: (1) Phone support for minor incidents and on-site support initiation, and (2) On-site technical support for all other maintenance/support needs.

The Contractor shall provide maintenance service within eight (8) business hours of receipt of request for service from the SBA.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 7 The Contractor shall provide repair service between the hours of 8:30 a.m. and 5:00 p.m. in the time zone where the SBA office is located. There shall be no limit on the number of repair calls that can be made.

Labor, travel and mileage costs shall be included in the Contractor’s firm-fixed pricing and may not be billed separately.

All maintenance support shall be performed by a factory-trained technician.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 8 The Contractor shall have on hand at least one mail machine and one scale that can be shipped overnight to SBA locations in the event an SBA Office has a time- sensitive mailing, and it has been determined that the current mail equipment cannot be repaired the same day.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 9 The Contractor shall provide on-site training for key operator(s) once new equipment is installed or whenever the key operator for an SBA location changes. The Contractor shall also provide supplemental key operator training in the event of upgrades or changes to the mail metering system (in terms of updates, hardware or software).

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for

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Task 10 The Contractor shall be the point of contact between meter manufacturer and the SBA since the meter rentals fees are paid to the Contractor and not the meter manufacturer

– and a part of contractor’s firm-fixed-price for each Period of Performance (POP). All problems with postage meters shall be handled by Contractor. If a meter replacement is necessary, arrangements shall be made by Contractor, and the same service standards that apply to equipment repairs, shall apply to postage meter problems.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 11 The Contractor, not the equipment manufacturer, shall be the point of contact for the SBA for the delivery, installation, and repair of all mail equipment.

Contractor shall resolve all problems pertaining to the mail equipment.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for defective delivery or services.

Task 12 The Contractor shall be able to provide reports on postage meter activity. The reports shall show the serial number of the postage meter, the full address of the SBA office, the date postage was added and the amount; the amount of postage on hand prior to the reset, and the total amount of postage after the reset. These reports shall be provided to the SBA Headquarters’ point of contact upon request.

95% on time services

Random inspection;

Annual inspection;

Validated customer complaints

Incentive: Positive CPARS; Full

Payment Disincentive:

Negative CPARS;

Delayed and/or no payment for

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EXHIBIT 2: SAMPLE QUALITY ASSURANCE

MONITORING FORM

SERVICE or STANDARD:

SURVEY PERIOD:

SURVEILLANCE METHOD (Check):

☐ Random Sampling ☐ 100% Inspection ☐ Periodic Inspection ☐ Customer Complaint

LEVEL OF SURVEILLANCE (Check):

☐ Monthly ☐ Quarterly ☐ As needed

PERCENTAGE OF ITEMS SAMPLED DURING SURVEY PERIOD: ______ %

ANALYSIS OF RESULTS:

Observed Service Provider Performance Measurement Rate: ______%

Service Provider’s Performance (Check): ☐ Meets Standards

☐ Does Not Meet Standards

Narrative of Performance During Survey Period:

PREPARED BY: ___________________________________ DATE: _________________