Attachment 2 - QASP TRIP Modeling_v3.pdf

TERRORISM RISK INSURANCE MODELING

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 TRIP Terrorism Risk Modeling. This plan sets forth the procedures and guidelines the Federal Insurance Office will 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 the Federal Insurance Office (FIO) 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 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 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

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 Contracting Officer Representative (COR) and the contractor. The CO will designate a COR as the government authority for performance management. The COR is responsible for monitoring, assessing, and communicating the technical performance of the Contractor.

3 IDENTIFICATION OF REQUIRED PERFORMANCE STANDARDS/QUALITY LEVELS

The required performance standards and/or quality levels are included in the PWS, which is included as Attachment 1. If the contractor meets the required service or performance level, it will be paid the amount agreed on in the contract in accordance with the invoice schedule. Failure to meet the required service or performance level will result in withholding of payment until deliverables that comply with the attached PWS are delivered and accepted by the Government.

4 METHODOLOGIES TO MONITOR PERFORMANCE

4.1 Surveillance Techniques

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 (include those that apply)

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

Periodic Inspection – COR typically performs the periodic inspection monthly.

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 CO, 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.

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

4.3 Acceptable Quality Levels

For all deliverables, the desired performance level is established at 100 percent accuracy.

5 QUALITY ASSURANCE DOCUMENTATION

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

Performance standards are expressed in the PWS and are assessed prior to Government acceptance of each deliverable. The COR will retain a copy of all completed QA surveillance documents and documentation to the contractor regarding performance in the project file.

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 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 performance up to the required levels. Failure to meet the performance standards may result in rejection of any invoices submitted for rejected goods/services.

6.2 Reporting

At the end of each month, the COR will prepare a written report for the project file 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, 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

The CO or COR may require the contractor’s project manager, or a designated alternate, to meet with the CO or COR and other government personnel as deemed necessary to discuss performance evaluation. The COR will define a frequency of in-depth reviews with the contractor; however, if the need arises, the contractor will meet with the CO or 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

6.3.1 The COR must coordinate and communicate with the contractor to resolve issues and concerns regarding marginal or unacceptable performance.

6.3.2 The CO/COR and Contractor should jointly formulate tactical and long–term courses of action.

Decisions regarding changes to deliverables, metrics, thresholds, or service levels should be clearly documented. Changes will be incorporated as a contract modification at the convenience of the CO.

7 FAILURE TO PERFORM

7.1 The contractor may receive deductions or even termination based on failure to perform. The following criteria apply for determining appropriate action:

7.1.1. Notifications. Consistent with FAR Part 49, the CO shall notify the contractor of failure to meet standards through QA monitoring forms, cure notices, or show cause notices and shall inform contractor’ project manager or designated alternate of such notices.

7.1.2. Deductions. The Government has the right to deduct a specified dollar for failure to meet performance standards.

7.1.3. Termination. If the CO determines that the contractor has failed to perform to the extent that a termination for default is justified, the CO shall issue a notice of termination, consistent with FAR Part 49.

ATTACHMENT 1: PERFORMANCE REQUIREMENTS SUMMARY

Required Services (Tasks)

Performance Standards

Acceptable Quality Levels

Methods of

Surveillance

Incentive

Kick-Off Meeting

Participate in Kick- Off Meeting

100%

100% Inspection – Participate in Kick-off

Meeting

Contractual Remedies

Quality Control

Plan

Submit Quality

Control Plan 100%

100% Inspection – Quality Control Plan is submitted within time requirements and accepted by Government

Review

Meetings – Terrorism Risk

Insurance Model, Participate in Review

Meetings 1 and 2 (Custom

Models Only)

100%

100% Inspection – Participate in Review

Meeting and Government Acceptance of any Required Deliverables

Review Meeting 3, Delivery of Final Terrorism Risk

Insurance Model (Custom Models

Only)

Deliver Final Terrorism Risk

Insurance Model (Custom Models

Only)

100%

100% Inspection – Delivery of Terrorism Risk Insurance Model within time requirements and Government

Acceptance of the Model

Training on Terrorism Risk Insurance Model (For Custom Models

Only)

Delivery of Training 100%

100% Inspection – Delivery of Training within time requirements and Government acceptance of the training.

Status Reports Delivery of status reports 95%

100% Inspection – Delivery of Status

Reports within time requirements in SOW.

Terrorism Risk Insurance Model – Cyber Component Outline (Custom

Models Only) and FIO Report – Annual Data Collection for the Terrorism Risk Insurance Program

Outline

Participate in Review Meetings 1 and 2 100%

Meeting and Government Acceptance

Performance Standards

Acceptable Quality Levels

Methods

Delivery of Final Terrorism Risk

Insurance Model – Cyber Component (Custom Models

Only) and Delivery of FIO Report – Annual Data Collection for the Terrorism Risk Insurance Program

Meeting 3 100%

Meeting and Government Acceptance

Training – Terrorism Risk Insurance Model

– Cyber Component

Delivery of Training 100%

100% Inspection – Delivery of Training within time requirements and Government acceptance of the training.

Annual Maintenance

– Terrorism Risk Insurance Model

Ongoing delivery of required maintenance of Terrorism Risk Insurance Model in accordance with SOW

95% Random Sampling – Periodic logging on to system to ensure accessibility and operational status is at least 95%

Optional CLIN:

Migration Services

Migration of system to new environment

100% Migration of system to new environment along with full functionality of system

Review Meeting 1, FIO Report

– Terrorism Risk Exposure Modeling by Private Industry

Meeting 1 100%

Meeting and Government Acceptance

Review Meeting 2, FIO Report

– Terrorism Risk

Exposure Modeling by Private Industry

Meeting 2 100%

Meeting and Government Acceptance

Performance Standards

Acceptable Quality Levels

Methods

FIO Report

– Terrorism Risk Exposure Modeling by Private Industry

Meeting 3 100%

Meeting and Government Acceptance

Annual Maintenance

– Terrorism Risk

Insurance Model – Cyber Component

Ongoing delivery of required maintenance of Terrorism Risk Insurance Model –

Cyber Component in accordance with SOW

95% Random Sampling – Periodic logging on to system to ensure accessibility and operational status is at least 95%

Transition Out

Transition of system and associated documents to successor contractor

100% 100% Inspection – Complete transition of System and associated documents to successor contractor within timeframe specified in

SOW.

ATTACHMENT 1: PERFORMANCE REQUIREMENTS SUMMARY