Attachment 2 - PRS Sector Sault Ste Marie.doc

70Z08420QAA9522000

70Z08420QAA8522000

ATTACHMENT #1

PERFORMANCE REQUIREMENTS SUMMARY

FOR

FULL FOOD SERVICES

AT

U.S. COAST GUARD SECTOR SAULT STE MARIE

SAULT STE MARIE, MI

PERFORMANCE REQUIREMENTS SUMMARY

1. General. The Performance Requirements Summary (PRS) in this section will be used to measure performance of services for the purposes of determining the continuation of service under this contract and any applicable payment deductions. The rights of the Government and remedies described in this section are in addition to all other rights and remedies set forth in this solicitation. The Government reserves the right under “Inspection/Acceptance” and “Termination for Cause” clauses of this contract. Any deductions pursuant to the PRS shall reflect reduced value of services performed under this contract. The Contractor shall not be relieved of full performance of the services hereunder and may be terminated based upon inadequate performance of services even if a deduction was previously taken for inadequate performance.

1.1. Individual Tasks and Other Services. Requirements not included in the PRS remain subject to separate quality assurance evaluations and deductions from payments under the “Inspection of Services” clause of this contract. The absence from the PRS of any contract requirement, however, shall not detract from its enforceability or limit the rights or remedies of the Government under any provision of this contract.

1.2. Explanation of the PRS. The PRS table (figure 1) lists those services for which the Government will make deductions from payment due the Contractor when service fails to meet the established Acceptable Quality Level (AQL). Due to the interrelated requirements of a food service operation, many tasks will have a direct impact on the overall acceptability of a required single service. Therefore, the PRS has been developed, where possible, to cover required services rather than the individual performance of tasks. Each listed service will pass or fail based on the acceptability of the tasks, which comprise that service.

2. PRS Table. The PRS included in this section will provide the following information:

2.1. Column Number 1. Column 1 lists the contract requirements by service outputs which breakdown the contract in areas considered necessary for acceptable contract performance. The Government will measure contract performance in each of these various areas to determine overall performance and contract payment. Each service on the PRS will be evaluated IAW established AQLs. Also provided in this column, is the reference paragraph number (including all subsequent subparagraphs) of the contract that describes the required service.

2.2. Column Number 2. Column 2 lists the contract paragraph (including subparagraphs) which details the standards for each listed service.

2.3. Column Number 3. Column 3 lists the lot size formula and AQL which together determine the maximum allowable degree of deviation from perfect performance that may occur for each listed service before the Contractor will receive less than 100 percent of the maximum payment for the listed service (column 4). Definition of the lot size used as the basis for surveillance and for payment computation purposes is also included in this column. Paragraph 2.3, add to the end of the paragraph the following: “The lot size will vary based on the number of days in the evaluation period (month), e.g.; 30 days = 3 meal periods X 30 = 90 (lot size), 31 days = 3 meal periods X 31 = 93 (lot size).

2.4. Column Number 4. Column 4 sets forth the percentage of the Contract price that each service output listed in column 1 represents.

3. Inspection Methods. The Government may use a variety of surveillance methods to evaluate the Contractor’s performance. The Government may unilaterally change the type and frequency of inspections as it deems necessary. Both scheduled and unscheduled surveillance will be used to look at the total or parts of performance. Valid customer complaints will not be added to the defective samples found under random or planned sampling for the purposes of deductions in contract payment. The methods of surveillance that may be used are listed at paragraphs 3.1-3.4 below and described in Section 2, Definitions/Acronyms. For the purpose of this contract, the word “sampling” is synonymous with the word “inspections”.

3.1. Random Sampling.

3.2. Planned Sampling.

3.3. Incidental Inspection.

3.4. Customer Comments.

3.5. Impromptu (spot check).

4. Performance Evaluations. The Government may perform monthly quality assurance inspections to measure overall performance and determine contract payment. Government inspections will be made IAW the Quality Assurance Surveillance Plan (QASP), to compare the Contractor’s performance to contract requirements and standards.

5. Measuring Performance. The Government will use sampling guides found in the QASP as well as the PRS as primary tools to measure contract performance. The American National Standard Sampling Procedures and Tables for Inspection by Attributes (ANSI/ASQCZI.4) will be used to determine the number of inspections and the number of allowable defects (unsatisfactory inspections) as determined by the AQL. Defects are the Contractor’s failure to meet contract provisions, requirements and standards. One defect constitutes failure of one inspection of one service listed on the PRS during an evaluation period.

5.1. Performance Tolerance for Random Sampling. When the method of surveillance of a service listed in the QASP (sampling Guides) is random sampling, Tables in ANSI/ASQCZ1.4 (MIL-STD-105D) will be used to determine the number of allowable defects and when each service should be accepted or rejected.

5.2. Performance Tolerance for Planned Sampling. When the method of surveillance of a service listed in the QASP (sampling Guides) is planned sampling; e.g. Receiving & Storage, the following procedures will be used to determine when that service should be accepted or rejected. The AQL will be multiplied by the lot size to determine the number of allowable defects. If the resulting value has a decimal, it will be rounded to the next higher whole number if the decimal is 0.5 or greater; and to the lower number if the decimal is less than 0.5. One additional defect will be the point at which the service will be rendered defective.

5.3. Acceptable Performance. Contractor performance will be acceptable when all requirements have been met and the allowable defects (as determined above) have not been exceeded, whether random or planned sampling techniques were used.

5.4. Unacceptable Performance. Services listed on the PRS will be unacceptable and rated defective (unsatisfactory) when the number of recorded defects exceeds the allowable number of defects. Defects result when performance does not meet contract provisions, or were not IAW contract requirements or standards, or were not completed by the specified time, or were not complete in its entirety. Once a defect has been identified it remains a defect, regardless if it has been corrected.

5.5. Contract Discrepancy Report (CDR). When a PRS service is defective, the Government will issue the Contractor a CDR. The Contractor shall reply in writing by the suspense date explaining why performance was unacceptable and how recurrence of the problem will be prevented in the future. The Contracting Officer will evaluate the Contractor’s explanation and determine if other remedies; e.g., partial payment, or contract termination is applicable.

6. Re-performance of Defective Work. Except as otherwise provided by this paragraph, the work required by the contract is of such a nature that defective or incomplete performance disclosed by Government inspection, is not subject to correction by re-performance or late performance. The Contractor shall not be required or entitled to re-perform, perform late, or otherwise correct defective work for the purpose of avoiding a defect for the day of evaluation and any applicable reduction in contract price. Exceptions to this apply to the cleaning aspects of the contract.

6.1. Re-performance Requirements. At the sole election of the Government and upon notification to the Contractor, the Contractor may be required to re-perform or perform late any or all-defective work. Where the Government so elects, the Contractor shall be notified promptly after inspection that specified defective work will be re-performed or performed late and completed within the re-performance period specified by the Government. In such cases, the Government will re-inspect work designated for re-performance or late performance.

6.2. Conditions of Re-performance. Re-performed work shall comply with the same requirements as initial work. The requirement for re-performing defective work will not alleviate the Contractor from responsibility to perform all other work IAW the terms of the contract. The Contractor’s original inspection results will not be modified when work is re-performed IAW the contract. The Contractor may be held liable for any damages sustained by the Government; e.g. costs associated with re-inspection.

Re-performance is allowed in the case of an infrequent task and at the sole election of the Contracting Officer re-performance can be required. You must qualify your findings for rejecting the service and immediately notify the Contracting Officer. A reasonable re-performance and re-inspection time must be given to the Contractor, usually 24 to 48hrs.

7. Contractor Payment. The Contractor will receive the maximum monthly contract payment when contract requirements have been met and each PRS service is performed within the established AQL; e.g. number of recorded defects does not exceed the number allowed.

7.1. Payment Deductions. When the Contractor fails to meet contract requirements of those services listed on the PRS; e.g. the number of recorded defects exceeds the number of allowable defects (AQL); performance will be deemed defective. The Contractor will be subject to a deduction in contract price based on the value of the service established by the percentages in column 4 of the PRS. Payment for services not conforming to the specified AQL will be calculated as described below.

7.2. Determining PRS Deductions for Random Sampling. To determine a deduction in contract payment for unacceptable service, the maximum contract payment per month (value of column 4) is multiplied by the percentage of the sample found unacceptable. The total number of defectives (unsatisfactory) found, not just those in excess of the reject level, are used to determine the percentage of the sample found unacceptable.

Example: Assume the maximum monthly contract payment is $120,000, an AQL of 6.5%, general inspection level II, normal degree of inspection and a lot size of 450 units. Using ANSI/ASQCZ1.4 Inspection level II, normal degree of Inspection, the resulting sample size would be 50 units with a reject of 8 defects. If 10 defects were found during the evaluation period the payment would be as follows:

Example payment computation for PRS random inspection:

1. Maximum monthly contract payment

$ 120,000

2. Maximum payment percentage is 5% x .05

3. Maximum payment for acceptable work

$ 6,000

4. Percentage of sample found unacceptable:

10 defects exceeds reject level of 8 defects divided by sample size (10/50 = .20)

5. Unacceptable percentage 20% x .20

6. Deduction for unacceptable work (line 3 x line 5)

$ 1,200

7.3. Determining PRS Deductions for Planned Sampling. To determine a deduction in contract payment for unacceptable service the maximum contract payment per month (value of column 4) is multiplied by the percentage of the sample found unacceptable. The Total of defectives found, not just those in excess of the reject level are used to determine the percentage of the sample found unacceptable. To determine an accept and reject level (different from random sampling) the number of defects is divided by the lot size and rounded at .5 to the next whole number.

Example. Assume the maximum monthly contract payment is $ 120,000, an AQL of 4%, and a lot size of 50 units. Using ANSI/ASQCZ1.4 Inspection Level II, Normal Degree of Inspection, the resulting sample size would be 8 units. Next, multiply 4% (AQL) times 50 (lot size) to obtain the number 2, the number of allowable defects. The established level would be 3 defects. If 5 defects were found during the evaluation period the payment computation would be as follows:

Example of payment computation for PRS planned inspection:

1. Maximum contract payment per month

$ 120,000

2. Maximum payment percentage is 4% x .04

3. Maximum payment for acceptable work

$ 4,800

4. Percentage of sample found unacceptable:

5 defects exceeds reject level of 3 defects divide number of defects by the lot size (5/50 = .10)

5. Unacceptable percentage 10% x .10

6. Deduction for unacceptable work (line 3 x line 5)

$ 480

Max payment

Required Service

Standard

Lot Size and AQL deduction %

PRS 1

Post & Maintain Menus

PRS 2

Furnishing, Receiving & Storage svc.

PRS 3

Food Preparation (Regular Menu svc.)

PRS 4

Food Preparation (Short Order)

PRS 5

Food Preparation (Breakfast & Salad Bar)

PRS 6

Deserts & Baked Goods

PRS 7

Food Serving

PRS 9

Dining Room Service

PRS 10

Floor Cleaning

PRS 11

Dishwashing

PRS 12

Pot & Pan Cleaning

PRS 13

Equipment Cleaning

PRS 14

Infrequent Cleaning (weekly)

PRS 15

Infrequent Cleaning

(Monthly/Quarterly)

PRS 16

Other Services

PRS 17

Quality Control

PRS 18

Headcount/Cashier svc.

PRS 19

Administrative svc.

See Page 2, paragraph 2.3 for information on lot sizes.

Attachment #2

Attachment #2